In a landmark agreement to overhaul the European Union’s customs framework, the Council of the EU and the European Parliament on Fridays reached an agreement under the Cyprus Presidency, with Finance Minister, Makis Keravnos, describing it as "the biggest reform since the creation of the Customs Union in 1968."
The reform introduces a modern "toolbox" designed to address mounting challenges, including the explosive growth in trade volumes -particularly in e-commerce- the need to reinforce EU standards at external borders, and increasingly complex geopolitical dynamics. The European Commission has also welcomed the agreement.
At its core, the reform sets out innovative mechanisms to facilitate international trade, improve the efficiency of customs duty collection, and strengthen controls on non-compliant or dangerous products. The objective is to enhance oversight while avoiding excessive burdens on authorities and businesses.
Keravnos added that the new Union Customs Code would enable the EU to respond more effectively to evolving geopolitical realities while safeguarding economic security. According to the minister, once adopted, “this modern set of tools will facilitate trade and ensure the proper collection of duties, in a simplified manner and with the necessary legal certainty.”
European Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency, Maroš Šefčovič, described the deal as a turning point, noting that “today's agreement marks a pivotal moment, opening a new chapter for our Customs Union," as it wil now operate as a single system.
Šefčovič highlighted that the reform will establish a central EU customs data platform and enable greater coordination among member states.
“The reform enables greater coordination between Member States, as we are equipping customs with the tools and governance needed to protect our single market, strengthen Europe’s competitiveness and enhance our economic security,” Šefčovič said.
He further noted that businesses and consumers stand to benefit from simplified procedures and stronger protection against unsafe products and unfair competition.
The agreement includes the creation of a single, modern EU customs data hub, simplified procedures for trusted traders, the introduction of a handling fee for small e-commerce parcels, and the establishment of a new decentralised European Customs Authority.
As such, the new EU Customs Authority, headquartered in Lille, France -a decision confirmed earlier this week- will coordinate the governance of the Customs Union and support risk management through real-time data analysis to identify high-risk shipments.
Meanwhile, the EU Customs Data Hub will function as a unified digital platform, allowing businesses to submit information only once, instead of dealing with up to 27 national customs authorities. This is expected to significantly reduce administrative costs and bureaucracy.
Particular emphasis is also placed on managing the surge in small parcels driven by online shopping. A new handling fee is set to be introduced within the year, alongside stricter accountability rules for e-commerce platforms.
The customs reform package has been under negotiation for the past two to three years, following the European Commission’s initial proposal in 2023.
Implementation will be gradual, with key milestones including the launch of the data hub for e-commerce in 2028 and full system deployment by 2034.
Next steps involve finalising technical details and securing formal approval from co-legislators. The legislation will enter fully into force 12 months after its publication in the Official Journal of the EU.
(Source: InBusinessNews)
