New legislation

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16 Jul 2025
Subject Tax updates
Categories Tax

Overview:

European Council and European Parliament reach provisional agreement on simplification CBAM

On June 18, 2025, the European Council and European Parliament reached a provisional agreement to simplify the Carbon Border Adjustment Mechanism (CBAM) as part of the "Omnibus I" legislative package. 

This initiative aims to enhance compliance efficiency while preserving the EU's climate goals, covering about 99% of embedded emissions in imported goods.

Key features include a broader "de minimis" exemption for importers, which will exempt importers from CBAM obligations if they do not exceed a level of 50 tonnes of CBAM goods per year. This change is especially expected to benefit small and medium-sized enterprises (SMEs) and individuals. Furthermore, in 2026 importers who are in the process of obtaining the Authorized CBAM declarant status are able to continue importing CBAM goods.

Additionally, in the following fields simplifications are expected: 

  • Authorisation procedure
  • Data collection processes
  • Emissions verification rules
  • Calculation of CBAM declarants’ financial liability during the years of import
  • Claim by CBAM declarants for carbon prices paid in third countries where products are produced

Besides the simplifications, the European Council and the European Parliament also reached agreement on penalties and on the rules regarding the indirect customs representatives.

The agreement must now be endorsed by the Council and European Parliament, with formal adoption expected by September 2025.

European Council agrees on a partial negotiating mandate for EU Customs Reform

On the 27th of June the European Council agreed on a position for the Customs Reform Package. The reform aims to modernise and improve the customs procedures within the EU. Currently, the most important changes include the following:

  • EU Customs Authority (EUCA): introductions of the EUCA which will develop and run the EU Customs Data Hub. 
  • EU Customs Data Hub: in this centralised Data Hub importers will report all their information on products and supply chain. With this Data Hub importers no longer submit customs declaration where the goods are actually released for free circulation. 
  • New e-commerce rules: online vendors and platforms will be accountable for complying with customs rules to protect customers from unexpected costs and to ensure safe products are brought into the EU.
  • Handling fee: a new handling fee will be introduced to compensate for the increased cost of compliance of distance sales. 

The agreement regarding the Council's negotiating mandate enables the European Council to initiate discussions with the European Parliament on the final version of the regulation. Before it can take effect, the resulting text must be officially approved by both the European Council and the European Parliament.

Suspension of customs duties on certain agricultural and industrial products (2021/2278)

Regulation (EU) 2021/2278 has been amended to reflect the following: 

  • The annex to Regulation (EU) 2021/2278 has been changed to include certain agricultural and industrial products which are not produced. This allows to import these products at reduced or zero duty rates without quantity limitations.  
  • Amendments are required for product descriptions and classifications in the Annex to reflect market developments. The Commission has reviewed certain Common Customs Tariff (CCT) duty suspensions and determined that some should be maintained, while others will be removed effective July 1, 2025, as they are no longer in the EU's interest.
  • In light of the ongoing geopolitical situation involving Russia and Belarus, the EU has decided to discontinue certain CCT duty suspensions for products from these countries to reinforce restrictive measures. Consequently, Regulation (EU) 2021/2278 will be amended to reflect these changes, which will take effect from July 1, 2025, to ensure continuity in the autonomous tariff suspension scheme. The regulation is to be enacted urgently.

The changes to regulation (EU) 2021/2278 and the annex can be found using the following link.

Suspension of customs duties on certain agricultural and industrial products (2021/2283)

Regulation (EU) 2021/2283 has been amended to reflect the following:

  • To ensure a sufficient supply of certain agricultural and industrial products not produced in adequate quantities within the EU, Council Regulation (EU) 2021/2283 established autonomous tariff quotas allowing for reduced or zero duty imports. New quotas with order numbers 09.2010, 09.2017, 09.2024, 09.2025, 09.2027, 09.2029, and 09.2031 will be opened at zero duty rates starting July 1, 2025. Additionally, specific TARIC codes will be added to an existing quota to better meet market needs.
  • However, certain quotas (09.2563, 09.2808, and 09.2925) will be closed effective July 1, 2025, as they are no longer in the EU's interest. In response to the ongoing geopolitical situation involving Russia and Belarus, the EU will discontinue exceptions for customs duties under specific quotas for products from these countries, reinstating duties to align with restrictive trade policies.
  • The Annex to Regulation (EU) 2021/2283 will be updated accordingly, and the changes will take effect from July 1, 2025, necessitating urgent implementation.

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