Fast track for the reform of the Union Customs Code?

On February 5, 2025, the European Commission presented its toolbox for secure and sustainable e-commerce. The measures it contains are not new, but largely reiterate 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 wants to significantly accelerate the handling of current e-commerce challenges. Among other things, it proposes bringing forward the customs reform to 2026.

Background

The number of low-value consignments (under EUR 150) entering the Union market daily has increased dramatically in recent years, from four million in 2022 to 12 million in 2024. These are often goods that do not meet the requirements of European law, in particular product safety and environmental protection law. This poses risks to consumer health, damages the environment, increases the carbon footprint, and puts (EU) companies that comply with current legislation at a competitive disadvantage. The Commission wants to counteract this development. Fundamental reform of customs law – as early as 2026? The Commission is taking the challenges arising from the exponential growth of e-commerce as an opportunity to once again call on the European legislator to implement the fundamental reform of customs law swiftly. Key measures of the reform 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 intended to enable importers to submit customs declarations in a single system – instead of national customs systems. Furthermore, the platform is also intended to consolidate reporting systems such as the CBAM reporting system and the EUDR information system. This is expected to reduce costs for businesses and the administrative burden for member states. For e-commerce, the proposal calls for the abolition of customs exemption for low-value shipments (up to €150). This aims to prevent the abuse of this exemption – through systematic undervaluation or splitting shipments. The reform also proposes registering online marketplaces and sellers as deemed importers under certain conditions, meaning they would be responsible for paying import duties and ensuring that imported goods comply with EU regulations. The Commission's renewed initiative also includes additional changes: online retailers would be charged a handling fee if they sell goods directly to consumers. The fee is intended to cover the costs of monitoring numerous prohibitions and restrictions related to the growing number of low-value shipments. Most relevant and impressive is the ambitious timeframe set by the Commission. Given the rapidly increasing number of imports, the Commission wants to bring forward the reform to 2026 – in particular the establishment of the EU Customs Authority and preparations for setting up the EU Customs Data Platform. However, the project still needs to formally go through the legislative and trilogue procedures. Steps towards sustainability: In the toolbox, the EU Commission also addresses the climate and environmental impacts of low-value imports. To curb these, the Commission is proposing various measures. The Commission wants to further specify the requirements of the Ecodesign Regulation (ESPR), which entered into force on 18 July 2024. The Commission plans to publish the first action plan for the ESPR in April 2025. This action plan will develop ecodesign requirements for the prioritized product groups, which will be the subject of the Commission's delegated act. Specifically, this will include design requirements as well as 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 to the ecodesign requirements, rules prohibiting the destruction of unsold products are expected to follow in July 2025. Furthermore, the Commission is pushing for the implementation of the revision of the Waste Framework Directive, which was already proposed in July 2023. This reform would also introduce extended producer responsibility for textiles and footwear. Furthermore, the Commission plans to propose a Circular Economy Act in the fourth quarter of 2025. This act will further develop and harmonize the regulations on extended producer responsibility. The Commission is also considering creating a central point of contact for manufacturer registration. Summary and Outlook: The Commission's Toolbox for Secure and Sustainable e-commerce of 5 February 2025 contains various policy demands and (planned) legal instruments. However, the measures sought do not relate exclusively to e-commerce, but are also of a more general nature, such as the reform of European customs law and the introduction of new sustainability standards. The intended implementation period of 2026 is certainly ambitious, but not entirely unrealistic. Given the massive pressure on European businesses losing market share to third-country e-commerce platforms, it would be welcome if the implementation period announced by the Commission could actually be met.