EU Customs Reform Reshapes Cross-Border E-commerce Rules by 2026
The EU customs reform has entered a critical phase, officially eliminating the €150 lower threshold for tax-exempt goods starting July 1. Additionally, the ICS2 system has been fully implemented across various transport modes, requiring sellers to provide detailed declaration data before goods arrive, significantly increasing compliance thresholds.
What are the key facts?
- 1Key milestone: Elimination of €150 tax-exempt threshold on July 1
- 2New regulation: ICS2 system fully covers all transport modes
- 3Impact: Significant increase in cross-border import compliance requirements
What happened?
The EU is implementing digital reforms in customs, including the abolition of tax exemptions for low-value imports and the mandatory enforcement of the ICS2 pre-declaration system, aiming to strengthen compliance oversight and address the surge in cross-border small-package trade.
What does this mean for cross-border sellers?
Sellers exporting to Europe must immediately verify their tax compliance strategies, adjust pricing strategies to account for increased tariff costs, and ensure the accuracy of logistics declaration data.