Milestone in EU Customs Reform: Member States adopt common position on new Union Customs Code (UCC)

This important step accelerates efforts to modernise customs procedures, strengthening the capability of EU customs to supervise and control the flow of goods entering and leaving the Customs Union, starting with e-commerce goods.   

On 17 May 2023, the Commission proposed a new Union Customs Code (UCC), aiming to digitalise, simplify and reduce the costs associated with customs processes. The European Parliament adopted its report in March 2024. After two years of technical discussions in the Council working group, the Council mandate paves the way for trilogues with the European Parliament, marking a major leap forward.

Addressing the pressures that customs in the EU face today, from the e-commerce surge to geopolitical shifts, the reform strengthens the Customs Union's ability to safeguard the Single Market and enables Member States’ customs authorities to act as one. 

A major innovation is the European Customs Authority, which will develop and run the new EU Customs Data Hub - transforming data provision, data sharing and risk management across Member States and ensuring smarter and more efficient customs operations. 

Key elements of the Reform

A European Customs Authority  

At the core of this transformation is the creation of a European Customs Authority (EUCA), which will develop and run a new EU Customs Data Hub. 

The Hub will revolutionise data provision and data sharing across Member States, providing businesses with a single digital environment and customs authorities with a common risk management framework and a panoramic view of import activities. This will enable smarter controls and efficient interventions. Over the coming years, the Data Hub will replace the existing national and trans-European IT systems across Member States, allowing them to save an estimated 2 billion EUR annually and to keep to the cutting edge of new technologies and analytical tools. 

Businesses that want to bring goods into the EU will be able to submit all the information on their products and supply chains into a single online environment, in a single place in Europe, even if the goods are destined for clearance in many Member States. This is a significant cut in the operators’ customs administrative burden, because they will only need to interact with one single portal and submit data once, for multiple consignments. 

A more modern approach to e-commerce and a new handling fee 

With 4.6 billion parcels imported in 2024, drastic measures are needed on e-commerce to ensure better customs supervision and risk prevention.

The reform makes online vendors and platforms accountable to comply with customs rules, protecting consumers from unexpected costs and ensuring products are safe according to EU standards. 

As announced in the Commission Communication on e-commerce of February 2025,  a non-discriminatory handling fee for goods imported into the EU directly to consumers is being discussed, to further strengthen the proposed measures with additional support to the customs authorities. 

The Commission is also prepared to lay the groundwork for all necessary secondary legislation and systems, for the EUCA and the Data Hub to become operational in line with the expected final agreement. 

Benefits for Member States, Businesses and Consumers 

The updated customs framework supports fair competition for EU businesses by reducing bureaucracy and lowering costs. At the same time, consumers will enjoy enhanced protection through a resilient system that boosts detecting fraud and unsafe products. The reform will help to reinforce EU legislation in various areas, such as product compliance, health, environment, climate, labour rights. The revenue gained from enhanced duty and tax collections will benefit both the EU and national budgets.

Next steps

The agreement on the Council's negotiating mandate allows the Council to start negotiations with the European Parliament on the final text of the regulation. The outcome will need to be formally adopted by the Council and the Parliament before it can enter into force.

Background

On 17 May 2023, the Commission presented its proposal to reform the Customs Union in response to evolving geopolitical dynamics and new challenges, such as the exponential growth in e-commerce. This comprehensive reform is designed to address those challenges, supporting Commission President Von der Leyen’s commitment to elevate the Customs Union to the next level and underscore its relevance in today's complex global environment. 

More about the EU Customs Reform