EU Agrees on Major Customs Framework Overhaul

The European Union reached a political agreement on Thursday evening to overhaul its customs framework, introducing the most significant reforms since the creation of the Customs Union in 1968. The deal, struck between the European Parliament and the Council of the EU, aims to manage surging trade volumes, enhance duty collection and strengthen controls on noncompliant goods entering the bloc.

The reform addresses the rapid growth in imports, particularly low-value e-commerce parcels, which have strained national customs systems. According to European Commission data, 4.6 billion items valued under 150 euros were imported in 2024, averaging 12 million parcels daily, up from 2.3 billion in 2023 and 1.4 billion in 2022. Over 90 percent of these originate from China, contributing to pressures from product safety issues, environmental regulations and geopolitical tensions, including uncertainties over potential U.S. tariffs and new EU trade agreements with partners like MERCOSUR and Australia.

At the core of the package is the establishment of an EU customs data hub, an online platform that will serve as a single entry point for businesses to submit customs information. This system...