Fast-track for the EU Customs Reform?

On 5 February2025, the European Commission presented its toolbox for safe and sustainable e-commerce. The tools contained in the toolbox are not new. They essentially repeat the Commission's proposals for a reform of the Union Customs Code, which it presented in May 2023. What is new, however, is that the Commission is seeking to significantly speed up the legislative process to address the current challenges posed by e-commerce imports. Among other things, the Commission proposes to frontload the customs reform to 2026.

Background

The number of low-value consignments (up to €150) entering the EU market every day has surged in recent years, from four million in 2022 to 12 million in 2024. Many of these goods do not comply with rules of European law, particularly in the areas of product safety and environmental protection. The Commission is determined to tackle the resulting risks, which include threats to consumer health, lasting environmental damage, increased carbon footprints, and competitive disadvantages for law-abiding (European) businesses.

Fundamental Reform of Customs law – as early as 2026?

In light of the exponential growth of e-commerce, the Commission once again urges the European co-legislators to swiftly implement the fundamental reform of customs law. Key elements of the customs reform proposal are a new Union Customs Code, the establishment of an EU Customs Authority, and the creation of an EU Customs Data Hub.

The EU Customs Data Hub is designed to allow importers to submit customs declarations to a single European system, replacing the national customs systems. The platform also aims to merge reporting registers such as the CBAM reporting register or the EUDR information system. This should reduce the administrative costs for businesses and Member States alike.

For e-commerce, the reform proposes to remove the duty exemption for low value imports (up to €150). This would thwart the current practice of abusing the duty exemption by systematically understating the value of consignments or splitting them into multiple shipments. The reform also establishes online marketplaces and sellers as 'deemed importer' under certain conditions. This would mean that they would have to pay import duties and ensure that the imported goods comply with EU regulations.

In its renewed push for reform, the Commission is also suggesting further changes: online retailers or intermediaries are to be charged a handling fee on e-commerce items imported in the EU directly to consumers. The fee is intended to cover the cost of ensuring compliance with European law for the ever-growing number of low-value consignments.

What is most relevant and striking is the ambitious timeframe set by the Commission. In view of the rapidly growing number of imports, the Commission wants to bring forward the reform to 2026 – in particular the establishment of the EU Customs Authority and the preparations for the creation of the EU Customs Data Hub. However, the proposal still has to go through the formal legislative procedure and trilogue meetings.

Steps towards Sustainability

In the toolbox, the EU Commission also addresses the climate and environmental impacts of importing low-value products. To mitigate these impacts, the Commission proposes a number of measures.

The Commission intends to clarify the requirements of the Ecodesign for Sustainable Products Regulation (ESPR), which entered into force on 18 July 2024. The Commission plans to publish the first ESPR working plan in April 2025. It will develop ecodesign requirements for the prioritised product groups that will be the subject of a delegated act. These rules will include design requirements, but also rules for the collection, recycling and disposal of the products. Similar requirements already exist for packaging (PPWR), batteries (Battery Regulation) and electrical and electronic equipment (WEEE). In addition, rules prohibiting the destruction of unsold textiles and footwear will follow in July 2025.

Furthermore, the Commission is pushing for the implementation of the revision of the Waste Framework Directive, which was proposed in July 2023. This reform would also introduce extended producer responsibility for textiles and footwear.

In addition, the Commission plans to propose a Circular Economy Act in the fourth quarter of 2025. The act aims to further develop and harmonise rules on extended producer responsibility. The Commission is also considering the creation of a one-stop shop for the registration of producers.

Conclusion and Outlook

The Commission's toolbox for safe and sustainable e-commerce of 5 February 2025 contains various policy statements and (plans for) legal instruments. However, the proposals are not limited to e-commerce. Some are of a general nature, such as the European customs reform and the introduction of new sustainability standards.

Implementing the reform by 2026 is ambitious, but not completely unrealistic. Given that European companies are losing more and more market share to e-commerce platforms from third countries and economic pressures are increasing, it would be more than welcome if the Commission's schedule for implementation could actually be met.

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