A milestone for the negotiations of the EU Customs Reform

On 24 June 2025, during the final session of the Council meetings, Member States reached a significant milestone by adopting the mandate for negotiations with the European Parliament concerning the comprehensive reform of EU customs law.

The works on this reform began in May 2023, when the European Commission proposed a new Union Customs Code to digitise, simplify and reduce the costs of customs processes, with a particular focus on strengthening the supervision and control of goods (especially e‑commerce) entering and leaving the EU Customs Union.

Following two years of technical discussions in the Council working group and the European Parliament’s adoption of its report in March 2024, the Council has now agreed on a negotiating mandate paving the way for trilogue negotiations with the Parliament. As the trilogue meeting has just started, the European Commission aims to bring forward the final version of the reform in 2026.

The central point of this ambitious proposal is the creation of the EU Customs Authority, a new body that will play a pivotal role in harmonising and strengthening customs operations across the Union. This Authority will be responsible for overseeing the EU Customs Data Hub, a centralised digital platform designed to streamline the collection, sharing and analysis of customs data among Member States.

This Hub will allow customs authorities to have access in real time to customs records, accounting systems, commercial and transport records or licences and authorisations granted. Furthermore, access to the EU Customs Data Hub will be restricted to individuals or their representatives involved in customs formalities as well as authorised staff from EU institutions, bodies, customs authorities and other competent national authorities.

The reform also introduces a modernised approach to e‑commerce aimed at addressing the challenges posed by the rapid growth of online trade and ensuring more effective enforcement of customs rules in the digital marketplace.

Furthermore, the proposal emphasises the integration of advanced technologies, particularly AI, to enhance the analysis and monitoring of customs data, thereby improving risk management, detecting fraud and facilitating legitimate trade. The comprehensive package reflects the EU’s commitment to modernising its customs framework, increasing efficiency and safeguarding the internal market in an increasingly complex global trade environment.

The Council’s mandate retains the existing Authorised Economic Operators (AEO) scheme while introducing stricter requirements for obtaining AEO status. Applicants must now demonstrate not only the absence of serious infringements of customs and tax rules, robust operational controls and financial solvency but also show that any non‑compliance is swiftly remedied and reported.

Alongside AEO status, a new Trust & Checked‑trader status will be introduced, offering even greater facilitations to qualifying traders. To obtain this status entities must meet all AEO requirements, have an electronic system for tracking customs operations and have conducted regular customs operations within the EU for at least two years. Importantly, companies can only hold one preferential status at a time so obtaining Trust & Checked‑trader status will result in the expiration of AEO status.

The European Commission’s proposal introduces rules regarding handling fees. A Union handling fee will be charged per item for goods sold in distance sales to cover the costs of customs services such as data checks, risk analysis and controls when releasing goods for free circulation. The fee amount will reflect the approximate costs of these services and will be lower for goods released from a customs warehouse for distance sales. The fee will be non‑refundable, collected alongside the customs debt, and the Commission will set the amount and collection procedures as well as regularly review the fee’s proportionality to actual service costs.

The proposal introduces a comprehensive overhaul of the definitions and obligations for exporters and importers operating within the EU customs territory, aiming to enhance regulatory clarity, compliance and supply chain security. Under the new framework, the status of exporter and importer will be generally limited to persons or entities established within the EU, thereby reinforcing the Union’s control over cross‑border trade. However, the proposal recognises the practical realities of international commerce by allowing certain exceptions for non‑EU entities, such as those involved in transit or temporary customs procedures, trans‑shipment, re‑exportation from free zones or those established in neighbouring countries with reciprocal arrangements.

Additionally, non‑EU entities may act as exporters or importers if they are represented by an indirect representative established in the EU or if their activities are deemed occasional and justified by customs authorities. For importers, the proposal significantly expands their responsibilities. Importers will be explicitly required to provide, maintain and make available all necessary information regarding the goods and their customs status prior to release, ensure the payment of customs duties and other charges, comply with all relevant legislation, maintain comprehensive records and promptly notify customs authorities of any suspicious or unauthorised activities. These obligations are designed to strengthen the integrity of the customs process and ensure that all parties involved in the importation of goods are accountable for compliance and security.

At PwC Switzerland our team of customs specialists brings together extensive legal, technical and operational knowledge to guide your business through the ever‑changing landscape of global trade. We understand that customs management can be complex and challenging especially as regulations evolve. That’s why we offer end‑to‑end support across all aspects of customs compliance and strategy:

• Expert guidance on regulatory changes: Our customs experts closely monitor developments such as the EU Customs Reform. We help your company understand the implications of new legislation ensuring you are fully informed about how these changes may affect your operations.
• Tailored compliance solutions: We work with you to assess your current customs processes and identify any gaps or risks. Our team assists in implementing the necessary measures to ensure your business remains compliant with all relevant regulations.
• Unlocking opportunities: Beyond compliance we help you identify and capitalise on opportunities that new customs regulations may offer. This could include optimising your supply chain, reducing costs or streamlining your customs procedures.