Topic of the week: Increased Digital Investment Required for 2026 Customs Changes
As the international freight industry prepares for the upcoming customs changes in the UK and EU, businesses are being warned to invest in greater levels of digitisation, automation, and electronic reporting to avoid severe consequences. According to Sarah-Louise Murray, Customs Manager at Derry Bros, a leading customs clearance specialist, the industry will need to adapt quickly to avoid added costs, delays, and operational risk.
The delayed introduction of the EU's Import Control System 2 (ICS2) Phase 3 and France's Enveloppe Logistique Obligatoire (ELO) in early 2026 will require businesses to move away from manual and paper dependencies. This includes investing in data integrity, internal compliance systems, and audit reporting to prepare for planned and future amendments. The margin for error is rapidly shrinking, and the threat of stricter fines and penalties is growing.
In the UK, companies will be granted free, self-service access to their customs declaration data from March 2026. This shift means expectations on internal compliance and data integrity will rise, with organisations held accountable to spot errors proactively. The recently published UK statutory amendments (Customs Miscellaneous Amendments 2025) also signal forthcoming changes to how declarations, temporary admissions, and oral/by-conduct declarations operate. The HMRC 2025-26 transformation roadmap signals further automation, digitalisation, and a push toward transparency and predictive compliance.
France will abolish limited/ad hoc fiscal representation under Regime 42 for non-EU businesses, requiring full VAT registration and tax compliance obligations. This change will have a significant impact on UK companies currently relying on fiscal representation shortcuts. Other EU jurisdictions may follow or impose similar stricter rules on non-EU sellers relying on representation or simplified regimes. The EU is also driving a customs reform that introduces a single EU Customs Data Hub and a new EU Customs Authority, with a vision for data to be submitted once into a unified environment, reducing risk analysis and clearance.
The EU's customs reform will require systems to provide real-time chain-of-custody, risk metrics, and data transparency. "Trusted" traders may benefit from near-automatic clearances with limited active customs checks. However, businesses constrained by paper-based systems or leaving preparations for incoming changes until the last minute will face significant risk. To avoid supply chain issues, loss of business, and damage to reputation, international freight businesses must adapt quickly to the changing customs landscape.
To stay ahead of the curve, businesses must invest in digital transformation, automation, and electronic reporting. This includes implementing software integrations, upgrading internal compliance systems, and ensuring data integrity. With the margin for error shrinking and the threat of stricter fines and penalties growing, it is crucial for businesses to seek guidance and support from customs experts to avoid any disruption to their operations.
Sea:
- Over the last two weeks, China/East Asia to North America West Coast spot rates have decreased by 5.6% from $2,958/FEU to $2,793/FEU, according to Freightos data.
- China/East Asia to North America East Coast spot rates have risen over the last two weeks, increasing by 2.9% to $3,733/FEU.
- Global container spot prices have risen over the last two weeks and are now sitting at $2,171/FEU, a 15.3% increase over the last two weeks and a 39.5% decrease from spot rates this time in 2024, according to the Freightos Baltic Index (FBX).
Air:
- Global Air Freight spot rates currently sit at $2.70, as rates continue to fluctuate according to the Freightos Air Freight Index (FAX)
- Europe to Northern America spot rates currently sit at $2.31 (100-3000 kg), says FAX, increasing by 15.5%.
- Europe to Asia, Greater China spot rates currently sit at $1.16 (100-3000 kg), says FAX, decreasing by 1.7%.
