EU Council and Parliament reach agreement on major customs reform

On the night of March 26, the Council of the EU and the European Parliament reached an agreement to reform the European Union customs framework, marking the most significant overhaul since the Customs Union's creation in 1968. The agreement, coordinated under the Cypriot Presidency, aims to address challenges such as the surge in e-commerce, geopolitical developments, and the need for stricter border controls. Key features include the establishment of an EU Customs Data Hub, which will act as a central platform for trade data, and the creation of a new decentralized EU Customs Authority. This authority will oversee data governance and support national customs agencies in risk management. The reform introduces simplified procedures for trusted traders to reduce costs and time, while implementing a new handling fee for small parcels entering the EU. Additionally, the measures are designed to ensure better collection of customs duties and enhance the monitoring of hazardous or non-compliant goods. Minister of Finance Makis Keravnos noted that the legislation will provide the necessary legal clarity and economic security for the Union.