The EU is about to implement the “biggest change” to its “customs systems and programmes for about 50 years”, according to Gordon Wright, the director of European operations at CT Strategies.
Wright was speaking on a Global Trade Live webinar hosted by the Chartered Institute of Export & International Trade yesterday (10 February).
Yet, despite the significance of the EU Customs Reform programme that he was referring to, only just over half of the audience were aware of the changes, with 35% saying they’d heard of it but didn’t know the details and a further 12% having never heard of it at all.
Why is the EU Customs Reform programme so significant?
“The main driver is the explosion in e-commerce,” Wright explained.
“The traditional customs procedures that have been in place for many years are no longer fit for purpose… there has to be a whole new approach”.
The programme was first presented in 2023 and aims to create a “significantly more connected, data-driven environment for traders”, Ilona Kawka, Chartered Institute Imports Advisory Practice lead, explained.
The programme will also lead to better compliance enforcement and increased visibility of goods movements across EU member states, she added.
Key changes include the creation of a centralised EU Customs Data Hub, a new EU Customs Authority overseeing the hub, an increased use of trusted trader schemes and the elimination of the ‘de minimis’ threshold for low-value consignments.
De minimis changes
Under the de minimis rules, imports of consignments valued under €150 have been exempt from customs duties and other obligations.
This easement has been particularly significant for the ecommerce sector, but has come under scrutiny in recent years amid fears that Chinese online retailers are exploiting it to dump cheap goods on the European market.
However, late last year, the EU announced that from 1 July 2026 all low value imports into the EU will be subject to a flat customs duty of €3 per item, with an additional €2 handling fee coming in November. These are temporary measures, and when the EU Customs Hub launches, the de minimis threshold will be completely removed.
An example of protectionism
The de minimis changes came in “quite quickly” and there are member states that are introducing the new customs fees ahead of the 1 July deadline, including Romania and Italy, said Wright.
He added that it was an example of a broader trend towards “protectionism” by the EU in response to broader shifts in global trade, such as US tariffs and increasing Chinese competitiveness.
“There’s a realisation that there’s a need to be more self-sufficient, not only in trade but also defence, because the old relationships with the US and others, you can’t count on those anymore,” he said.
Grace Thompson, UK public affairs lead at the Chartered Institute, noted that Europe needed to react to the changing trade and defence landscape, saying that the EU’s recent acceleration of its trade deal with India was an example of this.
“Whether these are long-term or short-term relationships, trade policy has to react to changes as they come,” Thompson said.
New norm of unpredictability
Kate Foster, deputy head of international affairs at the Federation of Small Businesses, noted that firms, particularly SMEs, were being faced with a “time and financial cost” because of customs changes in the EU, even those that are “ostensibly simplifications” – such as those being introduced as part of the EU ‘omnibus package’.
The de minimis changes will, in effect, “bring small businesses into the customs system”, meaning they will need to take on “the paperwork” and “the paying of the duties”.
Reflecting on other changes that have affected UK-EU trade in recent years, including Brexit, Foster added:
“Unfortunately, the cumulative impact of all these changes… is that some businesses have, reluctantly, had to stop trading with the EU. It’s not that small businesses don’t want to comply with these rules, it’s that it’s very difficult in terms of the cost”.
“Global trade tends to thrive on predictability,” she later said.
“Businesses need to stop seeing the current global geopolitical instability, particularly centred on what the US is doing in trade, as an aberration… We need to start approaching it as a new norm when it comes to business planning.”
Further support
Wright, Kawka, Thompson and Foster all signposted delegates towards online resources supporting businesses to prepare for these changes – including the European Commission’s website, the EU Files Forum, the Department for Business and Trade’s Business Growth Hub and the Chartered Institute’s Global Trade Today newsletter.
The next Global Trade Live webinar from the Chartered Institute will be on the UK’s free trade agreements on 10 March. You can sign up for this free webinar here.
Chartered Institute members can also get more information about the EU’s de minimis changes at an exclusive Lunchtime Learning webinar on 26 February, which they can sign up to here.
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