Modernisation of the EU Customs Code

On 26 March 2026, after almost three years of negotiations, the European Council and the European Parliament reached agreement on a reform of European customs law. This decision marks the first fundamental realignment of the European Customs Union since its establishment in 1968. Access to this marketplace (one of the most significant in the world, with 450 million consumers and an annual GDP of EUR 18 trillion) will therefore soon rest on a new legal foundation. The reform is driven by the e-commerce sector, which has grown steadily in recent years and poses new challenges for the customs authorities of the Member States. In the area of direct-to-consumer sales in particular, the EU is confronted with a flood of low-value consignments that cannot be comprehensively checked for compliance with European safety or environmental standards, nor for compliance with the EUR 150 customs duty exemption threshold. This creates a considerable competitive disadvantage for European suppliers, who must pay the corresponding surcharges on the importation of their goods. The customs reform that has now been adopted seeks to respond to these challenges by harmonising fragmented national standards and establishing an overarching organisational infrastructure.

What will the new data platform (EU Customs Data Hub) look like?

The central element of the reform is the introduction of the EU Customs Data Hub. In future, this central data platform is intended to replace the customs processing that is currently fragmented across 27 national IT systems with a single, EU-wide digital interface. Importers and exporters will use this interface to provide all customs- and product-relevant data centrally. The aim is that companies will only need to submit their data to the EU Customs Data Hub, rather than to 27 individual national customs administrations. At the same time, the data provided via the interface can also be reused for multiple or recurring consignments.

The implementation of the EU Customs Data Hub is planned in several stages:

• From 1 July 2028, the Data Hub is initially intended to be operational for e-commerce consignments.
• From 2031, voluntary use is envisaged for other economic operators.
• By 1 March 2034, mandatory use is to be extended step by step to all movements of goods.

For the various customs authorities, the Data Hub is also intended to serve as a real-time source for EU-wide, coordinated risk assessment, and to improve data integrity, traceability and the consistency of controls across the EU.

How will customs procedures change?

The reform also brings a number of changes to customs procedures more generally. Whereas customs processing has so far been based on individual declarations, this will now be replaced by a model built on the data provided in the Data Hub. This is complemented by the "Trust and Check" status, a trusted-trader status building on the existing AEO (Authorised Economic Operator) concept. In exchange for comprehensively providing real-time data and investing accordingly in their own IT and compliance structures, companies granted this status are intended to benefit from largely automated clearance.

Responsibility is also being reallocated in the area of cross-border e-commerce. In future, online platforms and distance sellers will be treated as the "importer" of the goods and will be responsible for all customs formalities and payments. Until now, this has been the responsibility of the end consumer. As a transitional measure pending the Data Hub becoming fully operational, the previously applicable customs duty exemption for consignments worth less than EUR 150 was abolished with effect from 1 July 2026. Until the standard duty rates apply (i.e. from 1 July 2026 to 1 July 2028) a flat-rate duty of EUR 3 per item applies. From 1 November 2026 at the latest, an EU-wide handling fee is also to be introduced, the amount of which will be set by way of a delegated act of the Commission.

What does this mean for customs controls?

With regard to customs controls, these changes bring about a stronger focus on risk-based approaches. Instead of transaction-by-transaction checks, customs authorities will in future be able to carry out more targeted and systematic controls on the basis of the real-time data pooled in the Data Hub. In particular, the improved EU-wide data transparency is intended to counteract so-called "border shopping" - that is, importing goods via countries with a lower intensity of controls. Companies with "Trust and Check" status benefit from reduced controls and a higher level of trust. The mandatory, centralised, and largely real-time, provision of data via the Data Hub is also intended to make it easier for customs authorities to track and understand the flow of goods and supply chains more transparently. For economic operators, this means, in turn, that the quality, completeness and timeliness of the data they provide will increasingly become central to customs compliance.

The reforms described above will require operators from third countries, as well as operators of drop-shipping models, to revise their cost calculations. In particular, the abolition of the EUR 150 duty exemption threshold for imports is expected to lead to an increase in "landed costs" (i.e. the total cost per item sold). Accordingly, consideration should be given to reducing costs by bundling shipments or by setting up logistics centres within Europe.

What do these changes mean for Turkish exporters?

Because of the Customs Union for industrial goods between Turkey and the EU, Turkish exporters are affected by the reforms to a particular degree. Even though the Customs Union excludes the levying of import duties on the categories of goods it covers, Turkish companies exporting to the EU remain subject to customs formalities, proof-of-origin requirements (including the A.TR movement certificate) and product-related requirements. For Turkish exporters and industrial companies, the following adjustments are likely to be required in particular:

• Digitalised customs processes: As the transition to the EU Customs Data Hub proceeds in stages, internal IT and data structures will need to be adapted so that the relevant information can be provided in the format, and to the extent, required by the EU.
• Stricter data requirements: The shift from declaration-based to data-based customs processing increases the requirements for the completeness, accuracy and timeliness of the data to be provided by exporters and importers - including, for example, the origin, classification and supply chain of the goods.
• Possible access to facilitations: Where close and stable supply relationships exist with EU importers, it may become relevant in the medium term to consider whether integration into structures comparable to "Trust and Check" status, for example, via appropriately certified EU contractual partners, could offer advantages in terms of goods clearance and the intensity of controls.

As the technical details of the reform, and the exact timetable for the individual implementation steps, have not yet been finally settled, Turkish exporters are nonetheless advised to carry out an initial review of their existing customs processes and of the suitability of their internal IT systems, data provision capabilities and trading relationships. The better and more comprehensively this preparation is carried out now, the more straightforward and efficient it will be to meet the mandatory data provision requirements once they take effect.

Who is responsible for implementing the reform?

These changes will be coordinated through the establishment of a new EU customs authority (European Customs Authority, EUCA), whose seat has been set in Lille, France. However, the EUCA will not take the place of the national customs administrations, which will remain responsible for day-to-day clearance operations and their own national risk analysis. The new authority's responsibilities include developing and operating the EU Customs Data Hub, promoting more consistent application of customs law, and liaising with national authorities on the basis of the real-time data pooled in the Data Hub.

Conclusion

The reform of the EU Customs Code marks a fundamental shift in the customs law framework of the European Union. It brings a change of perspective from declaration-based to data-based customs processing, designed to give the previously fragmented, nationally organised system a uniform and, accordingly, more efficient overarching structure. For exporters, this means that comprehensive and early-stage digitalisation of data and compliance processes, together with a contractual review of arrangements with EU trading partners, will be of considerable importance and may lead to advantages as the reform progresses.

Contact

The GEMS Schindhelm team will be glad to support you, both in practice and on any further questions, as this development unfolds. Please feel free to contact our law firm directly.