The European Commission outlines a sweeping shift in how customs operate. The aim is to fit a greener and more digitally driven era by streamlining procedures and equipping authorities with the tools and resources needed to assess, monitor, and halt imports that could threaten member states.
A new plan targets 2028 to establish an EU Customs Authority tasked with supervising a centralized data center that will leverage artificial intelligence to identify problems. The expectation is substantial savings, with the commission suggesting up to 2 billion euros per year in operating costs. It also proposes removing the duty exemption for goods valued under 150 euros.
Under this reform, a promise once championed by President Ursula von der Leyen now moves toward negotiations between governments and the European Parliament. The goal is to relieve the bottlenecks facing European customs today amid rising trade volumes, booming e-commerce, tighter European standards at the borders, and the pressures from various crises and geopolitical realities. Online platforms will play a pivotal role in ensuring that goods sold in the EU meet all customs obligations.
This marks a major shift away from a system that placed much of the responsibility on individual consumers and carriers. As Commissioner Paolo Gentiloni noted, platforms will be responsible for ensuring that duties and VAT are paid at the time of purchase, eliminating surprise costs and excessive paperwork for buyers. The plan also proposes scrapping the existing threshold that exempted low-value goods from customs duties, a practice often exploited by scammers. Brussels cites that up to 65% of packages entering the EU below the 150-euro threshold are undervalued to dodge duties.
1 billion: additional annual revenue
The reform also streamlines the calculation of duties for common low-value goods by trimming thousands of tariff categories down to four when buying from outside the EU. Brussels hopes this simplification will improve management of roughly 1 billion e-commerce purchases entering the EU each year and curb fraud. Projections indicate customs revenues could rise by another 1 billion euros annually.
Brussels argues this is the most ambitious overhaul of the customs union since its founding in 1968. The aim is to simplify processes and reduce red tape, especially for operators deemed more trustworthy, while reshaping operations to fit a digital reality with smarter, data-driven tracking of imports. The reform will streamline information requirements for operators, create a single EU interface, and enable data reuse, all while giving customs authorities the tools to assess risks accurately and intercept risky shipments.
How will the system work?
Companies seeking to bring goods into the EU will record product details and supply-chain data in the new EU Customs Data Centre. This hub will ingest information from businesses, offering authorities a 360-degree view of supply chains and the flow of goods through machine learning, artificial intelligence, and human oversight. The goal is to use AI to analyze data, monitor trends, and predict issues before shipments reach the EU border. That way, customs authorities can prioritize efforts to prevent unsafe or illegal goods from entering and ensure compliance with European law.
Meanwhile, traders will interact with a single portal for customs information, submitting data once for multiple shipments. The Authorized Economic Operators program will be strengthened, and a new operator category, Trust and Control, will enable more reliable circulation of goods with minimal active intervention by customs. Brussels calls this a world first and a powerful business-support tool designed to boost strategic autonomy while maintaining security and anti-fraud safeguards.
The plan envisions the Data Center opening to e-commerce shipments in 2028, with broader participation by other importers on a voluntary basis by 2032. Regardless of where goods enter the EU, shipments can be processed through the customs authorities of the claimant member state. A 2035 hub revision will assess whether this approach can extend to all operators when full mandatory rollout is slated for 2038. Such a transition signals a long-term recalibration of how the EU manages cross-border trade, data sharing, and enforcement across its internal market. [citation: European Commission]