Editorial Team – [2026] 185 taxmann.com 656 (Article)
Global IDT Insights provides a weekly snippet of tax news specifically related to Indirect Taxes from around the globe.
1. European Union (EU) Agreed on the Reform of Customs Union Framework
The European Commission announced on 26-03-2026 that the European Parliament and the Council have reached an agreement on a reform of the EU Customs Union. The reform introduces a modern, data-driven customs architecture, simplifies procedures, and enhances efficiency in customs operations across Member States.
The reform updates and integrates customs operations through a single data environment and a more uniform approach at the external border. It provides for the establishment of an EU Customs Authority, the development of the EU Customs Data Hub, specific measures for e-commerce, and a strengthened framework for businesses, with phased implementation of these measures.
Key aspects of this reform include:
(a) Introduction of EU Customs Data Hub as a single entry point for customs data – The reform introduces an EU Customs Data Hub as a single digital interface for the submission of customs data. Businesses will be required to submit data through this central system instead of multiple national systems. The implementation is phased, with the Data Hub opening for e-commerce consignments in 2028, extending to other businesses in 2031, and becoming the single mandatory EU Customs entry point for all traders in 2034.
(b) Establishment of the EU Customs Authority at the EU level – The reform provides for the establishment of an EU Customs Authority (EUCA) to coordinate customs operations across Member States. The authority will develop, operate and maintain the EU Customs Data Hub and support cooperation between national customs administrations. It will also facilitate information-sharing and risk coordination at the EU level. The seat of the authority has been designated in Lille, France, and it will commence some activities progressively from 2027.
(c) Shift from a declaration-based system to a data-driven customs approach – The reform replaces the existing declaration-based customs processes with a data-driven approach. Customs operations will be based on data submitted through the EU Customs Data Hub instead of transaction-based declarations across different systems.
(d) New framework for e-commerce operators as ‘importer for distance sales’ – The reform introduces a new framework under which online platforms and sellers are treated as ‘importers for distance sales’. These operators will be required to report sales data through the EU Customs Data Hub immediately after transactions. They will be responsible for ensuring payment of customs duties and VAT and compliance with applicable EU legislation. They will also be liable for financial obligations (customs duties and other fees) and may face penalties in case of non-compliance.
(e) Removal of duty exemption for low-value consignments below €150 – The reform removes the existing customs duty exemption for goods valued below €150. This exemption will no longer apply to low-value consignments entering the EU, particularly in the context of e-commerce imports.
(f) Temporary customs duty on low-value consignments – From 01-07-2026, a temporary customs duty of €3 will apply to items contained in low-value consignments entering the EU. This measure applies as an interim solution pending full implementation of the new customs data system.
(g) Introduction of handling fee on imported goods – A handling fee will be introduced on imported goods to cover customs processing costs, including IT systems, data verification, risk analysis, and controls. The fee will be determined through a delegated act and will apply at the latest by 01-11-2026.
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2. Vietnam Reduced Import Tariffs on Fuel Products
The Government of Vietnam has issued Decree No. 72/2026/ND-CP, reducing import tariffs on certain fuel and petrochemical products. The decree provides for the reduction of most-favoured-nation (MFN) import tariffs on gasoline, diesel, fuel oil, jet fuel, kerosene, and specified petrochemical feedstocks to 0 percent. The measures apply for a limited period from 09-03-2026 to 30-04-2026.
Key changes under this decree include:
(a) Reduction of the most-favoured-nation (MFN) import tariff on gasoline and blending components to zero percent – The decree reduces the MFN import tariff on unleaded motor gasoline from 10 percent to 0 percent. It also reduces tariffs on gasoline blending components such as naphtha and reformate from 10 percent to 0 percent.
(b) Reduction of import tariffs on diesel, fuel oil, jet fuel and kerosene to zero percent – The decree reduces import tariffs on diesel fuel, fuel oil, jet fuel and kerosene from 7 percent to 0 percent.
(c) Reduction of import tariffs on petrochemical feedstocks and cyclic hydrocarbons – The decree reduces import tariffs on xylene, condensate and p-xylene from 3 percent to 0 percent. It also reduces tariffs on other cyclic hydrocarbons from 2 percent to 0 percent.
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