An overhaul of the EU customs framework isn’t deterring growth of UK-to-Europe retail provide chains, writes Andrew Scanlon (pictured, beneath), Head of Gross sales and Advertising and marketing at e-commerce logistics supplier Paxon.
The European Council and the European Parliament not too long ago agreed on reform that may acquire customs duties extra effectively and tighten controls on non-compliant, harmful or unsafe merchandise. It’s a transfer that’s been considered the EU’s best customs reform for the reason that creation of the Customs Union in 1968 and has seen headlines a few crackdown on low-value parcels coming into Europe.
Modifications are anticipated to see the tip of responsibility aid on parcels valued at lower than €150 coming into the EU, with this being changed by new charges. Nevertheless, there’s way more to the reform, with important modifications probably encouraging, moderately than deterring UK companies from exporting to the EU. Our expertise suggests that is the case, with retailers and types eager to plan early and adapt provide chains to develop gross sales amongst European customers.
Facilitating commerce
The brand new EU customs framework will see the introduction of an information hub, which is scheduled to grow to be operational for e-commerce items on 1 July 2028. A phased rollout will deliver all actions of products into its scope by 1 March 2034. The EU customs knowledge hub will probably be a single on-line platform for amassing and analysing customs knowledge, supporting the safe and environment friendly actions of products into and out of the EU. A brand new, decentralised company for EU customs will utilise the hub to assist establish the riskiest cargo, flagging this for inspection.
Companies will submit customs data to the brand new portal, that means they solely submit data as soon as, moderately than as much as 27 particular person entries for every of the Union’s member states. This could assist facilitate and simplify commerce by saving exporters money and time. It’s going to additionally create alternative for ‘belief and verify merchants’ – a brand new course of that streamlines customs obligations for firms that constantly present complete details about their items. Corporations recognised underneath the scheme may discover they can launch items into the EU with none lively customs intervention in any respect.
Advantages of the brand new reform attraction to UK-based retailers and types, which wish to minimize the complexities of cross-border commerce. Companies are looking for recommendation to enhance the accuracy and compliance of customs declarations, guaranteeing they’ve obtained tried and examined processes in place effectively forward of the modifications.
It’s the brand new guidelines for small consignments which might be extra prone to be inflicting concern amongst UK companies exporting to the EU.
Altering charges
In December 2025, EU member states agreed to eradicate the customs responsibility aid threshold for items valued at lower than €150 coming into the EU. From 1 July 2026, there are plans to switch this exemption with a brief customs responsibility, which is anticipated to be round €3 per merchandise, in parcels valued as much as €150. A brand new flat price dealing with payment has additionally been proposed, with plans for this to be launched from November 2026, though that is nonetheless to be confirmed.
In the latest communication (twenty sixth March) from the European Council and the European Parliament, it was indicated that the extent of the dealing with payment will probably be determined by Fee delegated act, earlier than it begins being utilized by EU member states no later than 1 November 2026.
Communications additional indicated that platforms and people promoting into the EU by distance sale (e.g. through e-commerce) are anticipated to be answerable for guaranteeing that every one customs formalities and funds are taken care of. A brand new system of economic penalties will probably be launched for e-commerce operators systematically failing to adjust to their customs obligations.
Though additional readability concerning the new EU-wide dealing with payment remains to be required, UK firms are performing early. They’re reviewing fulfilment methods, contemplating choices akin to dual-entity warehousing and EU-based bonded warehouses, in addition to hybrid fashions of centralised provide chain planning and stock administration, supported by regional distribution hubs.
The EU presents a powerful development alternative for UK-based retailers and types. European e-commerce is flourishing and customers are prepared to purchase from exterior the EU – round 1 / 4 (27%) of customers did so in 2024. The brand new customs reform might sound daunting however can current alternatives to streamline exports and fulfilment. Planning early will probably be key to adapting provide chain and fulfilment methods that allow efficient cross-border buying and selling.
Andrew Scanlon is Head of Gross sales and Advertising and marketing at Paxon – a newly fashioned third-party logistics model created by bringing collectively three specialist suppliers: Energetic Ants, Staci and Radial.
