Latest edition of EY Belgium’s customs and excise update

Key Takeaways:

• EU formally adopts revised Union Customs Code 
• EU sets Union Handling Fee at EUR 2 per item for e-commerce imports 
• Introduction of the 21st sanctions package against Russia and Belarus 
• European Commission adopts 2026 update to the EU Control List of Dual-Use Items
• Introduction of new steel import framework with 50% out-of-quota duty and traceability requirements
• Amendments to Autonomous Common Customs Tariff Suspensions
• New Trade Defense Measures for imports from China (and Türkiye)
• EU Court clarifies the scope of “energy products used for purposes other than as motor fuels or heating fuels” under the EU energy tax framework
• EU Court clarifies excise duty exemption for denatured alcohol products
• New EU Regulation implements EU-US Trade Deal Commitments 
• EU-India Free Trade Agreement Submitted to the Council
   

EU formally adopts revised Union Customs Code

On 16 September 2026, the European Parliament and the Council of the European Union formally adopted the revised Union Customs Code (UCC) (Regulation (EU) 2026/2108), marking the most significant reform of the EU customs framework since the creation of the Customs Union in 1968. The text was published in the Official Journal on 19 September 2026 and entered into force on 21 September 2026.

Certain provisions concerning the institutional setup of the EU Customs Authority and the EU Customs Data Hub already apply. However, most provisions of the revised UCC will apply only 12 months after publication. The EU Customs Data Hub is set to become operational for e-commerce on 1 July 2028, and for other importers and exporters on 1 March 2031 on a voluntary basis and on 1 March 2034 on a mandatory basis.

Those wishing to learn more about the UCC reform can register for our webcast taking place on 27 October. Alternatively, please reach out to your usual contacts within the Belgian Global Trade team.
 

EU sets Union Handling Fee at EUR 2 per item for e-commerce imports

Following the adoption of the revised Union Customs Code (UCC), the European Commission has adopted the first Delegated Act establishing the amount of the Union Handling Fee provided for in Article 20 of the revised UCC at EUR 2 per item. This fee is intended to reflect the approximate costs incurred by customs authorities in handling a request for distance sales of goods imported from outside the Union and comes on top of the previously introduced import duty of EUR 3 for low-value consignments.

The delegated act is expected to be published in the Official Journal of the European Union in October and to enter into force on 1 November 2026, following a 10-day period after its publication. The introduction of this Union Handling Fee represents an important first step in the implementation of the revised UCC and will have an impact on all e-commerce operators and online marketplaces.
 

Introduction of the 21^st sanctions package against Russia and Belarus

On 23 July 2026, the Council adopted further restrictive measures against Russia and parallel measures against Belarus. The measures strengthen trade restrictions relating to military and sensitive goods, extend import bans and introduce additional financial, energy and anti-circumvention measures.

Russia

The measures against Russia expand export restrictions on military and sensitive goods, including certain nickel and beryllium products, specialized films and tapes, UAV equipment, jamming and interception systems, launch systems, servomotors and flight-termination systems. In addition, 51 entities, including entities located outside Russia, are made subject to enhanced export restrictions due to their links with Russia’s military and industrial complex or their role in sanctions circumvention.

The EU also introduces further import restrictions on goods generating significant revenue for Russia, including certain metal ores, unwrought zinc, zinc oxyde, inorganic chemicals, tall oil, glassware and vehicle parts. Existing contracts concluded before 24 July 2026 may benefit from a limited wind-down period until 25 October 2026 for specified products.

It broadens the designation criteria to cover vessels providing services to Russia’s shadow fleet, such as bunkering, tug services and ship-to-ship transfers, and the wider sanctions package lists 41 additional vessels, reaching the total of 692 designated vessels. It also introduces restrictions concerning Russian oil refineries and LNG tankers, extends transaction bans to additional credit institutions and crypto-asset service providers, and suspends the automatic adjustment of the Russian crude-oil price cap until 15 July 2027, subject to an interim review.

The 21^st package includes one of the largest batches of individual listings in recent years, with a total of 218 new designations, comprising 48 individuals and 170 entities. The listings cover not only Russian persons and entities, but also organizations located in third countries including China, Türkiye, Kyrgyzstan, Kazakhstan and India, as well as several financial institutions.

The EU is also strengthening the legal protection for EU operators in litigation stemming from EU restrictive measures by allowing EU courts and Member States not to recognize or enforce any court decision that was obtained in legal proceedings lodged in Russian courts.

Belarus

The parallel measures against Belarus expand export restrictions on military and sensitive goods, largely mirroring the additional controls imposed on Russia. Four additional Belarusian entities are also made subject to enhanced restrictions concerning dual-use and military-related goods and technologies.

The EU further extends the import ban on goods generating revenue for Belarus, also mirroring the controls imposed for Russia, with certain temporary exemptions.

Finally, reinforced legal protection is included in the Belarus sanctions regime as well.
 

European Commission adopts 2026 update to the EU Control List of Dual-Use Items

On 14 September 2026, the European Commission adopted a Delegated Regulation updating the EU list of controlled dual-use items in Annex I of Regulation (EU) 2021/821. The update reflects decisions taken in 2025 within the Wassenaar Arrangement, Australia Group, and Nuclear Suppliers Group, also considering that in April 2026 Member States had all accepted, also as Members of the Wassenaar Arrangement, further commitments to control additional items.

The amendment introduces controls on additional products and technologies, in particular in category 3, including semiconductor manufacturing and testing equipment and materials, advanced computing integrated circuits, and certain rotary encoders. Except from category 3, the most impacted categories in terms of new export control classifications are categories 1 (with the addition, for example, of 1,3,3,3-tetraethylguanidine and ceramic composite materials), and, with limited additions, categories 5 (software libraries), 6 (certain lasers) and 9 (technology for the development of axial compressors for gas-turbine engines). The amendment also modifies certain control parameters, technical definitions, and product descriptions, and adds new decontrol notes in various categories.

Companies should assess whether the updated list affects the classification of their goods, software or technology and, where relevant, obtain the necessary licenses. The changes to the Control List of Dual-Use Items are due to take effect after publication in the Official Journal, following the standard two-month scrutiny period for the European Parliament and the Council.
 

Introduction of new steel import framework with 50% out-of-quota duty and traceability requirements

Following the expiry of the EU steel safeguard measures on 30 June 2026, the EU has introduced a new framework to protect the EU market from the effects of global steel overcapacity.

The regime introduces tariff-rate quotas for a wide range of steel products. Once the applicable quota is exhausted, imports become subject to an additional 50% duty. The rules also extend to imports from several EU FTA partners, although the duty only applies where the relevant quota has been fully used.

A key new compliance requirement to ensure traceability is the obligation to demonstrate the country of "melt and pour", supported in principle by a Mill Test Certificate. These documentation requirements apply from 1 October 2026, with transitional arrangements available until 30 September 2027.
 

Amendments to Autonomous Common Customs Tariff Suspensions

On 25 June 2026, the Council adopted Regulation 2026/1463 introducing a targeted update to the EU’s Autonomous Common Customs Tariff Suspensions. The amendments are designed to ensure that the tariff suspension framework continues to support the competitiveness of EU industry while reflecting current market and production realities.

The Regulation adds new full duty suspensions for agricultural and industrial products that are not produced, or are produced in insufficient quantities, within the European Union. It also introduces partial duty suspensions for selected battery-related products to strengthen and support the development of an integrated EU battery production. In addition, several existing suspension entries have been updated through changes to product descriptions, tariff classifications, and end-use conditions, while certain suspensions have been extended through the introduction of new review dates. Conversely, suspensions that no longer serve the EU’s economic interests have been removed. The amended measures apply from 1 July 2026 and allow eligible imports to benefit from reduced or zero customs duties without quantitative limits, provided all Annex specific requirements are met.
 

Provisional anti-dumping duty on imports of sodium benzoate originating in China

The European Commission has taken further steps to address unfair trade practices and protect the EU industry, with provisional anti-dumping duties imposed on imports of sodium benzoate (TARIC code 2916 31 00 91) originating in China, applicable as of 29 July 2026. The duty rates range from 57,6% to 116,4%.
 

Provisional anti-dumping duty on imports of benzyl alcohol originating in China

The European Commission has taken further steps to address unfair trade practices and protect the EU industry, with provisional anti-dumping duties imposed on imports of benzyl alcohol (CN code 2906 21 00) originating in China, applicable as of 29 July 2026. The duty rates range from 52,6% to 71,2%.
 

Provisional anti-dumping duty on imports of certain wires of silico-manganese steel originating in China

The European Commission has taken further steps to address unfair trade practices and protect the EU industry, with provisional anti-dumping duties imposed on imports of certain wires of silico-manganese steel (TARIC code 7229 20 00 10) originating in China, applicable as of 11 August 2026. The duty rates range from 75,3% to 102,4%.
 

European Commission introduces import registration for welded steel mesh originating in China and Türkiye

Since 12 September 2026, the European Commission has made imports into the EU of welded steel mesh classified under CN codes 7314 20 90, 7314 31 00 and 7314 39 00 originating in China and Türkiye, subject to a 9-month registration measure. The measure was introduced by the European Commission as part of an anti-dumping investigation initiated following a complaint by the European Welded Steel Mesh Producers Association.
 

European Commission introduces import registration for primary cells and certain primary batteries originating in China

Since 16 September 2026, the European Commission has made imports into the EU of primary cells and primary batteries of alkaline manganese dioxide, classified under CN code 8506 10 11 and originating in China, subject to a 9-month registration measure. The measure was introduced by the European Commission as part of an anti-dumping investigation initiated following a complaint by VARTA Consumer Batteries GmbH & Co. KGaA on behalf of Union producers.
 

EU Court clarifies the scope of “energy products used for purposes other than as motor fuels or heating fuels” under the EU energy tax framework

On 15 July 2026, the EU Court ruled in Case T-562/25 that propane consumed during gas turbine burner testing constitutes use as a heating fuel under the Energy Taxation Directive. The judgment clarifies the scope of the exemption in Article 2(4)(b) of Directive 2003/96/EC, which excludes energy products used for purposes other than as motor fuels or heating fuels from the harmonized EU energy tax framework.

The case concerned an energy technology company that used propane to simulate real operating conditions in gas turbine burner test benches and sought energy tax relief on the basis that its objective was testing and measurement rather than heating. The company argued that the heat generated by combustion was merely a by-product and was not recovered or used after the tests.

The Court held that propane used in this way falls within the concept of use “as heating fuels”. The decisive factor was that the propane was burnt for its energy content and that the resulting thermal energy was used to create the operating conditions necessary for meaningful testing. The fact that the heat was not recovered, reused or retained after the tests was considered irrelevant.

As a result, the propane did not qualify as non-fuel use under Article 2(4)(b) of Directive 2003/96 and therefore remained subject to the EU energy taxation regime. Consequently, the company was not entitled to the energy tax relief provided under the corresponding German legislation.
 

EU Court clarifies excise duty exemption for denatured alcohol products

On 8 July 2026, the General Court of the European Union issued its judgment in Case T-381/25, P. sp. z o.o. v Dyrektor Izby Administracji Skarbowej w Łodzi, clarifying the scope of the excise duty exemption under Article 27(1)(b) of Directive 92/83/EEC for denatured ethyl alcohol used in the manufacture of products not intended for human consumption.

The case concerned two alcohol-based diluents. The Polish tax authorities denied the excise duty exemption on the grounds that the products should be classified under CN heading 2207 (ethyl alcohol) rather than under CN heading 3814 (solvents and thinners), and because some products could ultimately have been consumed by humans.

The Court rejected this approach and confirmed that classification under CN heading 2207 does not, by itself, justify the refusal of the exemption. Article 27(1)(b) requires only that alcohol is properly denatured and used in the manufacture of products not intended for human consumption. The Court emphasized that neither the wording of the Directive nor its purpose makes eligibility dependent on classification under a tariff heading other than 2207.

The Court further held that the exemption cannot be denied solely because the manufacturer knew, or should have known, that products manufactured as products not intended for human consumption were subsequently being used for human consumption. The assessment must therefore focus on whether the denatured ethyl alcohol was used in the manufacture of products objectively not intended for human consumption. A refusal of the exemption would require concrete, objective and verifiable evidence justifying such refusal in order to ensure the correct application of the exemption and to prevent evasion, avoidance or abuse.

The judgment reinforces earlier case law that exemption is the rule and refusal of the exemption the exception. Member States may impose anti-abuse measures only where these are supported by concrete, objective and verifiable evidence and are necessary to ensure the correct application of the exemption.
 

New EU Regulation implements EU-US Trade Deal Commitments

On 25 June 2026, the European Union implemented its commitments under the EU-US trade deal by adjusting customs duties and opening tariff quotas for a range of goods originating in the United States. Under Regulation 2026/1455, eligible products are divided into three Annexes based on their tariff classification. Products listed in Annex I benefit from a 0% customs duty rate, while products listed in Annex II are exempt from the ad valorem component of the Common Customs Tariff. For goods covered by Annex III, preferential tariff quotas are available up to the specified quota volumes and at the corresponding in-quota duty rates.

For any of the listed products to be able to claim the preferential treatment, they must meet the applicable requirements. Firstly, the products must be of US origin, determined based on the EU’s non-preferential rules of origin under the Union Customs Code (UCC). The importer must be able to provide proof supporting the claimed US non-preferential origin of the goods. In general, the free evidence principle applies. However, certain types, such as origin labeling (e.g. “Made in USA”) or third-country certificates of origin, are usually not considered sufficient proof of origin. Secondly, the products of US origin must meet the requirement of direct transport, which was further elaborated in Regulation 2026/1422. Where goods are transported via a third country, they must remain under customs supervision and may not undergo any processing other than operations necessary to preserve the goods or to affix marks, labels, seals or documentation required for compliance purposes. Compliance with this requirement must be demonstrated in addition to proof of US origin.

The Regulation 2026/1455 also includes provisions allowing the EU to suspend the preferential treatment and tariff quotas under certain circumstances, as well as safeguard measures to protect Union industries from harmful import surges. The regime applies from 1 July 2026 until 31 December 2029, providing temporary but significant tariff relief for eligible US-origin goods while maintaining mechanisms to protect EU economic interests.
 

EU-India Free Trade Agreement Submitted to the Council

On 11 September 2026, following the successful conclusion of negotiations, the European Commission submitted the EU-India Free Trade Agreement to the Council for signature under a newly introduced fast-track procedure. The agreement has therefore moved to the final stages of the EU approval process. Once approved by the Council, consented to by the European Parliament, and ratified in parallel by both parties, the agreement enters into force.

Once in place, the agreement will eliminate or reduce tariffs on 96.6% of EU goods exports to India, representing around €4 billion in annual duty savings on a bilateral trade relationship of over €180 billion in goods and services. Indian tariffs on cars are set to fall from 110% to as low as 10%, with reductions also foreseen on machinery (up to 44%), chemicals (22%) and pharmaceuticals (11%).

In return, the EU will liberalize 99.3% of its trade with India through full or partial tariff reductions. Sensitive EU agricultural sectors remain protected under the agreement. Products including beef, poultry, rice and sugar are excluded from tariff liberalization, while imports from India will continue to be subject to the EU's health, sanitary and food safety requirements.

Companies exporting to or sourcing from India — particularly in the automotive, machinery, chemicals, pharmaceuticals and agri-food sectors — can already quantify potential duty savings and assess whether their products qualify for preferential origin and what evidence will be required to claim preferential treatment upon import into the EU or India.