The European Parliament today gave its final approval to the text reforming the Union Customs Code, following the Council of the European Union’s approval on 4 September 2026. The Regulation will be signed by the President of the European Parliament and the President of the Council of Ministers still today and published in the Official Journal of the European Union as soon as possible, bringing to a close the legislative process first set in motion by the European Commission in May 2023.
Why This Reform Matters
The new Union Customs Code (UCC) represents the most far-reaching reform of EU customs law since the establishment of the Customs Union.
The reform responds to growing pressure on customs authorities arising from rapidly increasing (e-commerce) import volumes, the expanding number of EU standards to be checked and enforced at the border, new non-fiscal obligations and fragmented national IT systems. At the same time, it seeks to strengthen coordination and harmonise the interpretation and application of customs rules across Member States, while providing greater simplifications for the most trusted traders. The new framework is intended to make EU customs more modern, efficient and secure.
Key Tools Provided by the New UCC
The new UCC introduces, inter alia, the following key structures:
- The EU Customs Data Hub (the Data Hub) will serve as the central point for data exchange between traders and customs authorities. Importers, exporters, holders of the transit procedure, or other traders must provide or make available the data required to place goods under customs procedures, giving customs authorities real-time access to customs information. The Data Hub will simplify customs processes and reduce costs for businesses by replacing up to 27 national systems with a single platform, allowing traders to submit and reuse data for multiple consignments. It will also provide national authorities with a complete overview of trade flows and supply chains, enabling more effective risk management. Importantly, the Data Hub will ultimately replace traditional customs declarations. The Data Hub will apply gradually from 1 July 2028 to B2B e-commerce consignments, from 1 March 2031 voluntarily to other traders, and will become mandatory for all businesses importing into the EU from 1 March 2034.
- The EU Customs Authority will be based in Lille, France, and is expected to begin operations in 2027. In addition to overseeing the Data Hub, it will support national customs authorities by developing and coordinating EU-level risk analysis, establishing priority control areas and risk criteria, and coordinating customs action across EU Member States. National authorities will retain responsibility for enforcement.
Specifically related to e-commerce, the reform provides a response to an increasing volume of small parcels in the EU in several ways, notably by:
- Treating non-EU e-commerce platforms as the importer when selling goods into the EU and thus making them responsible for customs formalities and duty payments, rather than EU consumers;
- Imposing new penalties for e-commerce operators for non-compliance, including fines up to 6% of the company’s annual import value in the preceding year, loss of customs privileges, and access restrictions to online platforms; and
- Establishing an EU-wide handling fee on small parcels to cover processing costs by 1 November 2026, in addition to the recent flat-duty rate of € 3 for imported goods with an intrinsic value below € 150, which is a transitional arrangement until the Data Hub becomes operational on 1 July 2028.
What’s Next?
Following the European Parliament’s vote today, the Regulation will be signed still today and published in the Official Journal of the European Union as soon as possible. The Regulation will enter into force a day after its publication, and most provisions will apply after 12 months. The European Commission will also adopt the relevant Delegated and Implementing Acts, which are currently being finalized.
Cassidy Levy Kent’s attorneys assist clients navigating trade and customs issues and have been closely following the UCC Reform. We expect further developments soon and will continue to provide updates. Please contact us with any questions.