Customs Union • New European Union Customs Code and European Union Customs Authority (Regulation (EU) 2026/2108 of 16 September 2026)

Regulation (EU) 2026/2108 of the European Parliament and of the Council of 16 September 2026 establishing the Union Customs Code and the European Union Customs Authority, and repealing Regulation (EU) No 952/2013, published in the Official Journal of the European Union on 19 September 2026 and which entered into force on 20 September 2026, will apply gradually from 21 September 2027 (subject to the listed derogations). It will be supplemented by delegated acts and implementing acts.

This reform, which aims to strengthen and modernise the European Union’s (EU) customs union, in view of “rapid development of global trade patterns, technology, business models and the needs of stakeholders, including businesses, consumers” (Recital 3 of Regulation (EU) 2026/2108), is of interest to Monaco, whose territory is considered part of the EU’s customs territory, given the customs union between Monaco and France established by the Customs Convention of 18 May 1963.

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KEY ASPECTS OF THE REFORM OF THE EUROPEAN CUSTOMS UNION

Customs law in the European Union

EU customs law, which is based on a customs union and the Union Customs Code (UCC), provides for:

• the general rules and procedures designed to ensure the implementation of tariff measures and other measures established at EU level concerning trade in goods between the EU and countries or territories outside the EU’s customs territory,
• as well as provisions relating to the collection of import duties.

The customs authorities of the EU Member States (French Customs for the territory of Monaco) are responsible for implementing these rules as part of their operational duties:

• application of customs procedures,
• risk analysis and controls,
• penalties for breaches of customs legislation.

The shortcomings of Regulation (EU) No 952/2013

Regulation (EU) 2026/2108 repeals and replaces Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (recast) in order to address its shortcomings in practice, in particular (Recital 2 of Regulation (EU) 2026/2108):

• the limited capacity of customs authorities to deal effectively with the growing volume of goods imported from third countries in the context of distance sales (e-commerce transactions),
• the limited capacity of the IT systems architecture established by Regulation (EU) No 952/2013 to digitise customs processes in order to keep pace with technological advances, and in particular technologies based on data analytics,
• the lack of effective governance structures within the customs union, which results in divergent practices and inconsistent implementation of customs rules across EU Member States.

The main provisions of Regulation (EU) No 2026/2108

Regulation (EU) No 2026/2108 aims to facilitate trade for businesses, strengthen the fight against fraud and crime, and adapt European tools to the growth of digital technology and e-commerce. In essence, it:

• establishes the new Union Customs Code (UCC), setting out the general rules and procedures applicable to goods entering or leaving the EU’s customs territory;
• establishes the EU Customs Authority (EUCA), based in Lille (France), to enable concerted action and the convergence of practices across the 27 national customs administrations, with a central role in threat analysis (fraud, organised crime, dangerous goods), in the harmonisation of practices (control methods, joint training) and crisis management (rapid response in emergencies).
  National administrations retain their operational powers, remaining responsible for controls, risk management at national level, the processing and issuing of customs authorisations, and the collection of customs duties.
• sets out the rules, common standards and governance framework for the establishment of the EU Customs Data Hub, managed by the EUCA, an integrated set of interoperable electronic services for the collection, processing and exchange of information relevant to the implementation of customs legislation.
  The platform, which is intended to replace existing national information systems (IS), will serve as the single point of entry for businesses. For each import operation, it will enable customs data to be submitted in real time, as well as its reuse and enrichment throughout the supply chain, and improved data quality thanks to enhanced control and traceability.
  Customs authorities and other authorities responsible for protecting the EU’s internal market (health, plant health, market surveillance and tax authorities) will have access to this data.
  The platform will be rolled out gradually: mandatory for distance sales from 1 July 2028, optional for other operators from 1 March 2031, and mandatory for all from 1 March 2034.
• introduces the status of Trust & Check Trader (TCT), enabling businesses to benefit from simplifications that streamline their international trade operations (centralised customs clearance, release without customs intervention, exemption from transit formalities, e-commerce bonded warehousing), in return for a guarantee of a very high level of transparency (direct, near real-time access to trade data for customs authorities via the EU Customs Data Platform), compliance with high security standards, and active participation in the detection and reporting of any information concerning suspicious movements or unauthorised tampering.
• introduces a single liability for the importer (in most cases, the person with the power to decide – and who has decided – to bring the goods into the EU) for all trade flows, including, in particular, distance sales via e-commerce (the importer is no longer the consumer but the seller or the person facilitating the sale). The aim is to put an end to the current situation of fragmented liability (between the carrier, the declarant and the consumer). The importer is responsible for compliance with customs and sector-specific regulations (duties and taxes, product safety, the Carbon Border Adjustment Mechanism (CBAM), deforestation, forced labour, restrictive measures, etc.).
  Digital platforms and online sellers are classified as importers for distance sales.
  In the event of systematic non-compliance in the context of distance sales, a fine of between 1 per cent and 4 per cent of the value of goods imported into the EU over the previous twelve months is applicable; in the event of a repeat offence within six months, the fine ranges from 3 per cent to 6 per cent.

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More information on the reform of the European Customs Union on the European Commission’s website > https://taxation-customs.ec.europa.eu/customs/eu-customs-reform_en