Uniform Customs Code (UCC) Reforms for eCommerce in European Union
The European Union (EU) is implementing a major Union Customs Code (UCC) Reform, proposed in 2023, to digitalize and simplify customs by 2038, by creating a new EU Customs Data Hub. It replaces the previous Community Customs Code (CCC).
Some of the changes proposed under UCC include:
- Elimination of the €150 Duty Threshold: The existing exemption from customs duty for goods valued at less than €150 will be abolished to ensure fair competition with EU sellers and reduce fraud. This will be effective from July 2026
- New Duty Slabs on low value goods: From 1st July 2026, all imported B2C e-commerce shipments, under €150 will pay €3/item customs duty (based on HSN code). At a later stage, possibly around 2028, this will further be categorized under 5 groups: 0%, 5%, 10%, 12% and 17% (based on HSN code).
- Handling Fees: The EU Commission also announced the implementation of a handling-fee in 2026. This will differ by country. Romania & France have proposed €5 per item while Netherlands, Italy have indicated €2 per item. The exact date of implementation of the same will differ by country.
- ICS2 Requirement: Stricter customs procedures, including the Import Control System 2 (ICS2) with mandatory, detailed electronic declarations, will apply to ensure security.
Impact
- Costs will likely add up for small shipments
- More inspections on electronics, cosmetics, toys
- Better labelling required; CE marking more strictly enforced
Recommendations:
- Consider local warehousing if you have high order volumes across multiple channels and/or ship to multiple countries within the EU region.
- Identify local partners for product listing, compliance, packaging and payment remittance.
