EU – Council and Parliament: Major Reform of the EU Customs Union  

For the European Union, March 26, 2026, could be colored in red, as a day of major importance for the future of the EU Customs Union. The EU Parliament and Council reached an agreement on modernizing the EU Customs Union framework. 

Customs Union hasn’t experienced this sort of modernization for almost sixty years, since its birth, to be precise. Reform of this magnitude is more than necessary, given the importance of the changes that have occurred over the last 10 to 15 years. 

The new Customs rules are going to be structured as an answer to regulate with more precision, efficiency, and effectiveness, the non-stop expanding reach of the e-commerce sector, in all its complexities. EU customs authorities have faced many challenges over the last few years with the import of low-value goods from other countries. 

The circa 6 billion influx of low-value parcels originating outside the EU makes Customs authorities in Member States work at least hellishly challenging. The funds that Member States’ governments need to allocate solely to the credible processing of low-value goods are sizeable, even without accounting for the costs of other institutions or bodies involved in all parts of the supply chain for low-value imports. 

Reform of the EU Customs Union 

Reaching an agreement between the Parliament and the Council on the EU Customs Union reform took a few years since the idea was first proposed. The Commission proposed the reform in May 2023, emphasizing the need for legislative overhaul of the rules that underpin the EU Customs Union.

Pillars of the EU Customs Union 

The Commission’s Customs reform is based upon three key pillars. Each pillar, on its own, addresses aspects that aren’t aligned with the growth of the e-commerce sector, technological advancements for cross-border commerce, new business models, and other relevant points for a more efficient EU customs framework. 

Pillar One – Customs policies for enhancement of the customs control procedures. Data-driven control procedures for a faster, less fragmented approach to the EU Customs framework. Monitoring, and intra-EU risk-based analysis of transactional data, and a coordinated customs approach. 

Pillar Two – Establishment of the central EU Customs Data Hub. Central platform where all mandated customs- and tax-related data is transferred. With all mandatory data stored in one place by separate EU Customs authorities, more effective risk management is guaranteed. 

Taxable persons (EU- and non-EU-based) responsible for managing EU imports shall use the EU’s Central Customs Hub interface to handle all administrative work that can be handled directly, reducing paperwork and administrative and compliance costs for traders. 

Third Pillar – Stronger collaboration with economic operators. Modernization of customs procedures has simplified the customs clearance process. 

E-Commerce at the Center 

Major regulatory updates concerning the e-commerce sector shall result in: 

• Removal of the customs duty exemption reserved for low-value goods originating from outside the EU(abolishment of the EUR 150 threshold for LVG)
• Transitional imposition of the fixed EUR 3 parcel fee(per item category) for low-value imports starting on July 1, 2026 
• Imposition of handling fee(customs operation fee) from November, 2026 
• E-Commerce platform operators become, by default, a deemed supplier for low-value imports 

Final Steps

The second-largest reform of the EU Customs Union should be finalized by 2034, with the latest developments of the EU Central Data Hub fully operational to handle administrative, compliance, and customs procedures for all traders within the EU Customs framework