The European Parliament and the Council reached a political agreement on 26 March 2026 on a comprehensive reform of the European Union (EU) Customs Union since 1968. The reform introduces a centralized EU Customs Data Hub, a new EU Customs Authority (EUCA), stricter controls in e-commerce imports, and the removal of the €150 de minimis duty exemption. 

The EU Customs Reform introduces several key changes: 

• Effective 1 July 2026, the abolition of the €150 de minimis duty exemption will terminate duty-free entry for all low-value consignments (LVCs) entering the European Union. As a transitional measure from 1 July 2026 until 1 July 2028 (with potential extensions), a flat customs duty of €3 per tariff heading will be levied on consignments declared under the Import One Stop Shop (IOSS) framework. Upon the deployment of the EU Customs Data Hub, this interim flat rate will be replaced by standard Common Customs Tariff rates; 

• The forthcoming EU Customs Data Hub will serve as a centralized, cloud-based digital infrastructure engineered to unify the fragmented customs systems currently managed across individual EU Member States. The platform is slated to commence operations for e-commerce transactions in 2028, transition to voluntary integration for broader commercial traders around 2032, and become progressively mandatory for most economic operators between 2034 and 2038; 

• The establishment of the EU Customs Authority (EUCA)  will introduce a centralized regulatory body responsible for EU-wide customs risk analysis, data processing coordination, and the overarching governance of the EU Customs Data Hub; 

• Trust & Check Trader (T&CT) status will introduce an advanced tier of customs compliance above the legacy Authorized Economic Operator (AEO) framework, granting a more comprehensive level of trust-based custom 

• Under the EU's proposed customs reforms, e-commerce platforms and online marketplaces will be “deemed importers” and will assume legal responsibility for importing goods into the EU, reducing the burden on EU consumers. However, for Philippine exporters that sell directly to EU consumers through their own websites, it is the exporter (or its EU representative) that will be “deemed importers” for purposes of EU.  

Philippine exporters are advised to assess the potential impact of these measures on their pricing structures, logistics arrangements, and customs compliance processes. Exporters may wish to review product bundling strategies to minimize the number of tariff classifications per parcel and explore the use of bulk shipments to EU-based fulfillment centers where commercially feasible. 

To know more about this new regulation, please refer to this link: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52023PC0258. 

Given the anticipated implementation of the new duty regime on 1 July 2026, Philippine exporters are encouraged to monitor forthcoming EU guidance and prepare for the expected increase in costs associated with direct low-value shipments to EU consumers. 

For more information, stakeholders may reach out to the Philippine Trade and Investment Center in Brussels at brussels@dti.gov.ph and/or Export Marketing Bureau – Market Division at marketdivision@dti.gov.ph.