New EU e-commerce, customs rules take effect Nov 1
Parcels delivered at the inbound area of a warehouse in southern Germany. Stock photo from the European Parliament website
  • Parcels bound for delivery within the European Union that were bought from non-EU online shops will be subject to a handling fee by November 1, 2026 latest
  • Handling fee will be paid by the entity covering other customs fees
  • Sellers and platforms that facilitate the distance sales of goods from non-EU countries directly to EU customers will be treated as importers, which means they will be obliged to provide customs authorities with all the required data, cover charges, and ensure quality standards compliance
  • These companies must be established in the EU or be represented by an EU-based entity having either authorized economic operator or trusted trader status to ensure accountability  
  • An EU-wide IT system called Data Hub will be established to replace more than 111 current systems
  • A new EU customs authority has also been set up, based in France, which will be in charge of the Data Hub, among other responsibilities

Parcels bound for delivery within the European Union (EU) that were bought from non-EU online shops will be subject to a handling fee by November 1, 2026 latest, based on new rules recently approved by the European Parliament.

The exact amount of the handling fee will be set by the European Commission, and will be revised every two years to keep it proportional to the actual costs, the EU announced.

Members of the European Parliament approved a major reform of the EU Customs Code on September 16, including the new handling fee that will have to be paid by the entity that covers other customs charges for the items. This avoids shifting the cost to consumers.

“Sellers and platforms that facilitate the distance sales of goods from non-EU countries directly to EU customers will be treated as importers. This will oblige them to provide customs authorities with all the required data, pay or guarantee any charges, and make sure that the goods shipped to Europe comply with EU laws,” the EU said.

These companies must be established in the EU or be represented by an EU-based entity having either authorized economic operator (AEO) or trusted trader status to ensure accountability and prevent the use of shell companies to circumvent the new customs rules.

For bulk shipments that are easier for customs authorities to check, non-EU country sellers and platforms are “encouraged to operate warehouses in the EU” so that their intra-EU client shipments will benefit from a lower handling fee.

Penalties

Companies that repeatedly ignore EU rules may face a fine of at up to 6% of the total value of goods imported into the EU in the previous 12 months. Customs authorities may also suspend, revoke, or annul their trusted trader or AEO status and flag them as high-risk operators.

“This is the biggest reform of European customs since 1968, supporting trade and the enforcement of EU rules,” Rapporteur Dirk Gotink from the Netherlands, said.

“As rapporteur, I have seen firsthand the tsunami of Chinese parcels violating EU rules, not paying taxes, and overwhelming our customs. We are ending the highly toxic business model of cheap non-compliant and dangerous imports from China in favour of trade based on our standards and on fairer competition. We are finally giving Europe’s 80,000 customs officers the instruments they need to protect consumers and businesses for the decades to come,” Gotink said.

READ: E-commerce sellers to EU must now pay €3 duty for under €150 packages

Import-export companies that follow the rules and agree to cooperate transparently with customs authorities may also benefit from a simplified “trust and check” regime, which will require them to submit to vetting and to grant customs authorities access to their electronic systems.

After the vetting process, their shipments will be checked less frequently and they will have more flexibility regarding the payment of duties and fees. The current AEO qualification will also remain in place to keep customs status accessible to smaller economic operators.

New EU Data Hub, customs authority

The Customs Code reform also involves the creation of a new pan-European customs IT system called EU Data Hub that will be managed by the newly-established EU customs authority (EUCA) based in Lille, France.

The EUCA’s main responsibilities also include coordinating future customs cooperation and ensure risk management.

The Data Hub will be available for optional use by 2031 and become mandatory by 2034. It will replace at least 111 software systems currently used by customs authorities in Europe, which will mean easier and faster declaration of goods and communication with customs authorities.

On the part of customs authorities, it will improve risk analysis given the availability of comprehensive data as well as facilitate cross-border cooperation.

The European Commission initiated the comprehensive Customs Code reform in May 2023 in response to the growing influx of individual parcels from non-EU web shops, which overwhelm the EU’s customs authorities and opens a gateway into the EU for unsafe products.

READ: PH-EU free trade talks advance on multiple fronts in 5th round

 

You May Also Like