The EU’s New Customs Code: What’s Changing for Israeli Exporters
Summary
- 1. What is changing? According to the update, the EU published a new customs code in September 2026, shifting primary responsibility for the accuracy and completeness of customs data to importers and exporters. The reform also introduces a single EU Customs Data Hub and centralized risk management and supervision.
- 2. Immediate changes for low-value shipments: According to the update, the customs duty exemption for shipments worth up to EUR 150 was abolished in July 2026 and temporarily replaced by a flat customs duty of EUR 3 per product type in a parcel. A handling fee is due to be introduced by November 1, 2026, although its amount has yet to be determined. In July 2028, regular customs tariffs will replace the temporary flat duty.
- 3. Implementation will be gradual: Use of the new EU Customs Data Hub will become mandatory for e-commerce in July 2028. Other businesses may begin using it voluntarily in 2031, before its use becomes mandatory for all traders in 2034.
- 4. Implications for Israeli exporters: Companies selling directly to EU consumers may be treated as importers and will need to operate through an EU-based indirect representative with authorized economic operator (AEO) status if they are not incorporated in the EU, or sell exclusively through platforms that assume the importer’s role. For sales to business customers, the main implications are expected to be requirements for more detailed information, signed declarations, and indemnification clauses. The rules of origin and the EU-Israel Association Agreement remain unchanged, but proofs of origin are expected to face greater scrutiny.
- 5. What should companies do now? Map sales channels and identify who will act as the importer, update contracts to address customs duties, fees, and responsibility for customs data, ensure consistent documentation of product origin, and monitor implementing measures. Advance preparation is important, even before all the new obligations take effect.
On September 19, 2026, the European Union published Regulation 2026/2108, its new customs code, repealing Regulation 952/2013. The new regulation is already in force, but implementation will be phased in over several years. Use of the new EU Customs Data Hub will become mandatory for e-commerce on July 1, 2028, and for all traders in 2034.
Coverage of the EU’s customs reform focuses on e-commerce and the influx of small parcels into the EU. The more fundamental change, however, concerns responsibility for customs data. As the European Commission explained in its 2023 proposal, the existing code placed that responsibility primarily on those submitting customs declarations, including declarants or customs agents. The new code places responsibility directly on importers and exporters and introduces a single European database, the Customs Data Hub, alongside centralized risk management. For Israeli exporters, the implications extend far beyond e-commerce.
This update outlines the key changes, the implementation timetable, the implications for Israeli companies, and the steps they should take now.
Current Situation and What Is Changing
The principal change is the shift in responsibility from brokers to the parties to the transaction, supported by a new institutional and technological framework.
|
Topic |
Existing code (952/2013) |
New code (2026/2108) |
|
Responsibility for customs data |
Responsibility rests primarily with the declarant or customs agent submitting the declaration. |
Importers and exporters are now directly responsible for the accuracy and completeness of customs data. |
|
Distance sales to EU consumers |
Consumers are usually the recipients, and shipping companies submit simplified declarations on their behalf. |
E-commerce sellers and platforms are treated as “importers for distance sales.” Entities not incorporated in the EU must operate through an indirect representative with authorized economic operator (AEO) status. |
|
Low-value shipments |
The customs duty exemption for low-value goods in separate parcels up to EUR 150 was abolished on July 1, 2026, under Regulation 2026/382. It was replaced by a flat customs duty of EUR 3 per product type in a parcel, applicable until July 1, 2028. |
A flat handling fee for low-value shipments will be introduced by November 1, 2026, with the amount to be determined by the European Commission. Regular customs tariffs will replace the flat customs duty in 2028. |
|
Information systems |
Separate national customs databases with differing requirements. |
A single EU Customs Data Hub will gradually replace national databases. |
|
Risk management and supervision |
Each country manages risk and supervision separately, with differing enforcement standards. |
The EU Customs Authority, based in Lille, France, coordinates risk management and information sharing between countries. |
|
Sanctions |
Sanctions are determined by each country’s national law. |
Financial penalties are linked to the value of the imported goods, as defined in the regulation, together with denial of customs relief and restrictions on access. |
|
Trusted traders |
AEO status is voluntary and grants exemptions from certain customs checks. It is available to economic entities incorporated in the EU, including importers, exporters, manufacturers, and customs agents. |
AEO status remains voluntary. A new Trust & Check status offers fewer checks and faster release of goods to entities that give customs authorities ongoing access to their supply chain data. |
The rules of origin, customs duty rates, and the EU-Israel Association Agreement remain unchanged. The reform concerns how customs authorities collect, verify, and enforce requirements relating to customs data, rather than the substantive terms of trade.
Timetable
The new customs code is already in force, but implementation will be gradual. According to the European Commission’s website, the EU Customs Data Hub will become mandatory for e-commerce on July 1, 2028. Other businesses may begin using it voluntarily in 2031, before its use becomes mandatory for all traders in 2034.
|
Date |
What comes into effect |
|
July 1, 2026 |
Abolition of the customs duty exemption for low-value shipments worth up to EUR 150 and introduction of a flat customs duty of EUR 3 per product type in a parcel |
|
September 19, 2026 |
Publication of the regulation in the Official Journal |
|
By November 1, 2026 |
Introduction of a flat handling fee for low-value shipments |
|
July 1, 2028 |
Mandatory use of the EU Customs Data Hub for e-commerce; expiration of flat customs duty of EUR 3 per product type |
|
2031 |
Other businesses may use the EU Customs Data Hub voluntarily |
|
2034 |
Use of the EU Customs Data Hub becomes mandatory for all traders |
Impact on Israeli Companies
Israeli companies selling directly to EU consumers through e-commerce websites or platforms will be directly affected by the new customs code. They may be treated as importers and become responsible for customs duties, fees, and compliance with EU product requirements. Companies not incorporated in the EU will need to operate through an EU-based indirect representative with AEO status, as described in the regulation’s recitals, or sell exclusively through platforms that assume the importer’s role.
The customs duty exemption for low-value shipments worth up to EUR 150 has already been abolished. Under Council Regulation 2026/382, a flat customs duty of EUR 3 applies to each product type in a parcel from July 1, 2026, until July 1, 2028. This duty is usually paid by the seller or its representative.
A broader impact is expected on Israeli exporters engaged in business-to-business (B2B) transactions. An exporter selling to a distributor or industrial customer in Europe is not directly subject to the new obligations. Its European importer, however, will be responsible for the accuracy of the classification, value, and origin it declares, and will likely shift some of that risk to the supplier through requirements for more detailed information, signed declarations, and indemnification clauses.
The Israeli context adds another dimension. A substantial share of Israeli exports to the EU benefits from preferential tariff treatment under the Association Agreement, subject to proof of origin. Concentrating data in a single database and managing risk at the EU level are expected to intensify the systematic scrutiny of such proof, including the place of manufacture, which, in certain cases, determines eligibility for preferential treatment.
It is important to remember that the regulation does not immediately change the EU’s trade terms with Israel, and the new obligations will take effect gradually. However, European customers are expected to update their contractual terms in the coming years. Israeli exporters who prepare in advance will be better positioned to meet the new requirements.
What Should Israeli Companies Do Now?
- Map sales channels to the EU. For direct sales to consumers, decide who will act as the importer and who will serve as the indirect representative with AEO status. For sales to business customers, clarify what data will be required and at what level of detail.
- Review distribution and supply contracts. Clarify who pays customs duties and fees, who is responsible for the accuracy of the information submitted to customs, and who bears the cost of any fine resulting from inaccurate information provided by the suppliers. Incoterms alone do not resolve all these questions.
- Properly document product origin. Verify that proofs of product origin under the Association Agreement are supported by documentation and that product data is consistent across internal systems and the documents provided to customers. For low-value shipments to consumers, consider whether submitting a full declaration with proof of origin is cost-effective compared with the flat customs duty of EUR 3 per product type.
- Monitor European Commission decisions. Many details, including the amount of the handling fee and technical requirements for the EU Customs Data Hub, have yet to be finalized.
Not all details are known yet, and some questions will only be resolved once the new system becomes operational. However, an exporter who maintains well-organized data and updates its contracts in advance will be better positioned in its dealings with customers and customs authorities.
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Prof. Amichai Cohen is a special counsel for international law.
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