EU and UK Customs Are Changing in 2026: What You Need to Know

European Union and United Kingdom customs rules are on the brink of significant change, with 2026 emerging as a pivotal year. As key exemptions disappear, new fees and procedures are explored, and digital customs systems accelerate, e-commerce sellers will feel the impact across pricing, VAT planning, and supply-chain design. In this article, you’ll find the key developments that deserve your attention as you plan ahead.

1. The Future of the EU’s Low-Value Duty Exemption

The EU has formally announced its intention to remove the €150 customs duty exemption for low-value e-commerce imports. The plan sits within the EU Customs Reform Package, with full implementation scheduled for 2028. According to the European Commission, transitional steps could begin as early as 2026, so businesses should already be preparing for a scenario in which every imported parcel is potentially subject to customs duties, regardless of value.

A temporary administrative levy on low-value parcels is also under discussion, widely referenced as being around €2 per shipment. The measure is expected to come into effect during the transition period beginning in 2026, although the precise structure and timeline may still be adjusted. The aim is to reduce pressure on customs authorities as the EU moves toward its 2028 reform.

High-volume e-commerce sellers are likely to face higher import costs once the changes take shape, prompting the need to review pricing, renegotiate supply terms and reconsider supply chain configurations.

2. France Ends Use of Regime 42 for Non-EU Businesses

Many e-commerce sellers are expected to encounter higher import costs once the upcoming changes take effect, which means pricing structures, supplier agreements and broader supply chain strategies will all require careful review.

France has confirmed that from 1 January 2026, non-EU businesses will no longer be permitted to use Customs Procedure 4200, widely known as Regime 42, when importing goods through French entry points. The mechanism previously allowed non-EU sellers to move goods into France without paying import VAT, provided the consignments were then dispatched to another EU Member State. A significant number of UK and other non-EU e-commerce businesses had relied on the arrangement by using a French VAT number supplied by an intermediary.

Once the procedure ends, non-EU businesses will lose the ability to defer import VAT in this way, and goods entering France will fall under standard VAT rules. Companies that have built their EU entry model around French ports or fulfilment hubs will therefore need to reassess their VAT planning and customs processes ahead of 2026. The regulatory shift is fully confirmed and will have a direct operational impact on non-EU traders using France as a gateway to the EU market.

3. ICS2 Phase 3 and Extended Pre-Arrival Data Requirements

The EU’s Import Control System 2, known as ICS2, is being introduced in several stages. Earlier releases created new pre-loading and pre-arrival data requirements for air cargo, express operators and postal shipments, establishing a more structured approach to safety and security screening across the EU’s external borders.

The next phase, which focuses on maritime, road and rail movements, is scheduled for rollout through 2025 and into 2026. As the programme expands, a broader range of transport modes will come under heightened filing obligations, and carriers will be required to submit more comprehensive data before goods reach EU customs authorities. Detailed and accurate product descriptions will become increasingly important, as vague or generic wording is less likely to pass automated risk assessment systems. Many dates within the implementation cycle are still being finalised, yet 2026 is shaping up to be a pivotal period in the shift towards more rigorous data-driven controls under ICS2.

4. New EU Commodity Codes and Ongoing Digital Transformation

The EU plans to introduce several updates to the Combined Nomenclature commodity codes in 2026, affecting sectors such as lithium-ion battery materials, artificial graphite and wind turbine components. The revisions reflect the EU’s growing emphasis on strategic raw materials, environmental technologies and greater oversight of sensitive supply chains.

Work is also progressing on a more centralised and digital customs environment. The long-term ambition is to create a single EU-wide customs data hub that supports deeper information sharing, more automation and the gradual integration of AI-driven risk assessment tools. Early elements of this system are expected to take shape before the full reform scheduled for 2028. As the transition advances, accurate data and well-structured digital documentation will become increasingly important for businesses trading with the EU.

5. UK Reforms: Rules of Origin and HMRC Modernisation

The UK is preparing for several developments that will influence cross-border sellers over the coming years. Work is underway to adopt updated Pan-Euro-Med rules of origin, which will replace the 2013 framework once fully implemented. The revised rules, already supported by the EU and a number of participating PEM countries, aim to modernise origin criteria and offer greater flexibility for goods manufactured with components sourced across multiple jurisdictions. Timelines continue to evolve, although further movement is anticipated in 2026, making early preparation advisable for businesses with complex supply chains.

Attention is also turning to HMRC’s ongoing programme of digital modernisation. Improvements to case management systems, data tools and online submission processes form part of the UK’s wider post-Brexit transformation of its customs environment. The goal is greater consistency, improved efficiency and reduced administrative burden for traders handling cross-border movements. Some details of the 2026 milestones have yet to be published, yet the modernisation programme is already shaping how customs data is recorded, transmitted and reviewed.

What E-commerce Sellers Should Start Doing Today

Preparation during the period leading up to 2026 will be essential for any business involved in cross-border e-commerce. The reforms planned across the EU and the UK will place much greater emphasis on accurate data, well-structured customs documentation and resilient supply chain processes. Early action will reduce the risk of disruption and financial exposure once the new rules take effect.

• Review product data in full, ensuring that HS codes, descriptions and valuation details are sufficiently detailed for enhanced customs screening.

• Reassess entry points and fulfilment routes, particularly for businesses that have relied on France’s Regime 42 as part of their VAT strategy.

• Evaluate the preparedness of carriers and logistics partners, noting that ICS2 expansion will require comprehensive pre-arrival data across all major transport modes.

• Strengthen digital capabilities by adopting systems that support consistent and structured data submission to customs authorities in both the EU and the UK.

• Establish clear expectations with suppliers regarding product descriptions, bills of materials, valuation evidence and origin information to prevent delays linked to incomplete documentation.

How KATA Global Logistics Can Help

KATA Global Logistics provides end-to-end freight forwarding and customs support for e-commerce businesses, covering international transport, documentation and border clearance. The team specialises in navigating complex regulatory changes and offers guidance on HS code accuracy, optimal entry routes and preparation for enhanced data requirements under ICS2. Digital visibility tools and dedicated account management help reduce delays and prevent unexpected costs. Working with KATA gives sellers a reliable partner to maintain smooth, compliant operations as new EU and UK customs rules take effect.

Get in touch today to ensure your business is fully prepared for the 2026 customs landscape!