On 14 October 2025, the European Commission (the “Commission”) published its fifth annual report on the screening of foreign direct investments in the Union. This report describes the latest developments in foreign direct investments (“FDIs”) in the EU, as well as legislative developments at Member State and European levels and other trends in FDI screening.

In its judgment C-206/24 of 1 August 2025, the European Court of Justice (ECJ) ruled on the conditions under which a customs authority is obliged to refund import duties levied without legal basis ex officio. The ECJ clarified that a refund ex officio requires the customs authority to determine, within three years of the entry in the accounts, that the duties were levied without legal basis – and to know the identity of the person concerned and the amount of the refund. If this information is lacking, the authority must take reasonable, but not disproportionate, measures to obtain it. If this is not possible, the obligation to refund lapses after the deadline – even if it has determined within the deadline that the duties were not legally owed.

On October 23, 2025, the European Union (EU) adopted its 19th sanctions package against Russia. The new package targets the energy and financial sectors in particular. At the same time, export and service bans were tightened, and restrictions on individuals were expanded.

Following the meeting of the EU Environment Council on 21 October 2025, EU Commissioner Jessika Roswall announced a targeted simplification package for the Deforestation-Free Products Regulation (hereinafter "EUDR"). This announcement was followed on the same day by a formal proposal to amend the EUDR, including the introduction of a new Annex III (link). The Commission proposes significant changes to the EUDR but maintains the date of its application. The Commission proposes only a six-month extension for micro and small enterprises until 30 December 2026 (instead of 30 June 2026). Key substantive changes relate in particular to so-called "downstream operators" and "micro and small enterprises".

On the night of September 28, 2025, the deadline for the so-called "snapback mechanism" initiated by Germany, France, and the United Kingdom expired. This means that the UN Security Council sanctions against Iran, which had been suspended since January 2016, are back in force. The EU reacted immediately and transposed the UN sanctions into directly applicable EU law.

On September 29, 2025, a new Interim Final Rule of the US Bureau of Industry and Security came into effect, extending (re-)export control restrictions to affiliated companies of certain listed companies.

EU Commissioner Jessica Roswall, Directorate-General for Environment, Water Resilience and a Competitive Circular Economy, today informed the European Parliament in a letter of the Commission's intention to postpone the application of the European Deforestation Regulation (“EUDR”) by one year. This was also confirmed by Alois Rainer, the German Federal Minister for Food, Agriculture and Home Affairs. The regulation, which entered into force on July 29, 2023, was originally scheduled to apply from December 30, 2024. Following a previous postponement, the application date had already been pushed back to December 30, 2025.

Annex I to Regulation (EU) 2021/821 (the “Dual-Use Regulation”), which lists goods, including software and technologies, that are classified as “dual-use” – meaning they can be used for both civilian and military purposes – and are therefore always subject to export authorization from the EU, is usually updated annually. On 8 September 2025, the European Commission published a draft Delegated Regulation amending Annex I (C(2025) 5947 final). The announced update introduces numerous new technical entries, particularly in the areas of semiconductor technology, cryogenics, and quantum computing. Companies exporting goods to third countries must familiarize themselves with the changes promptly. The regulation is expected to enter into force at the end of 2025.

In its judgment of 1 August 2025 in Case C-602/24, the European Court of Justice (ECJ) addressed the conditions for VAT exemption on the export of goods under VAT Directive 2006/112/EC. The Court clarified that supplies originally declared by the supplier as intra-Community supplies, but subsequently delivered by the purchaser to locations outside the EU without the supplier's knowledge, can also qualify for VAT exemption. It thus reaffirmed that the actual circumstances alone are decisive for VAT exemption, and the taxpayer's intentions and beliefs are irrelevant. Formal requirements under national law must not preclude this. As in all cases of this kind, this does not apply if the taxpayer acts in bad faith. Continuing its established case law, the ECJ emphasizes the principle of fiscal neutrality, the importance of good faith, and the irrelevance of formal violations if the substantive requirements for VAT exemption are met.