Increased Digital Investment Required to Keep Pace with 2026 Customs Changes

International freight businesses will need to adopt greater levels of digitisation, automation and electronic reporting to comply with incoming UK and EU customs requirements or face severe consequences in terms of added costs, delays and operational risk. According to our Customs Manager, Sarah-Louise Murray, some freight companies may face a major shock in 2026 and beyond, as many of the processes they rely on today will no longer be sufficient.

“Businesses involved in the international movement of goods will increasingly need to move away from manual and paper-based processes, while also investing in data integrity, internal compliance systems and audit reporting to prepare for planned and future amendments,” explains Sarah-Louise. “Keeping on top of these proposed UK and EU changes will be essential to avoid business and operational disruption and maintain competitiveness.”

A range of major regulatory shifts are expected in early 2026, including the delayed introduction of the EU’s Import Control System 2 (ICS2) Phase 3 and France’s Enveloppe Logistique Obligatoire (ELO). Alongside these, a wider set of customs changes will need to be considered and planned for. This means the margin for error is shrinking rapidly; the risk of goods being delayed or refused entry at UK or EU borders is rising, and the potential for stricter fines and penalties is growing.

In the UK, businesses will gain free self-service access to their customs declaration data from March 2026, the same information assessed by HMRC. This shift will place far greater expectations on data integrity and internal compliance, with organisations expected to proactively identify and correct errors. As a result, clean, auditable customs systems will be essential.

Recently published UK statutory amendments (Customs Miscellaneous Amendments 2025) also outline several forthcoming changes affecting declarations, temporary admissions and oral or “by conduct” declarations. In addition, the HMRC 2025–26 transformation roadmap signals an intensified push towards automation, digitalisation and predictive compliance.

Meanwhile, in France, limited or ad hoc fiscal representation under Regime 42 for non-EU businesses will be abolished. This change will impact many UK companies currently relying on simplified representation, who will now need full VAT registration and full tax compliance. Other EU jurisdictions may introduce similar requirements, placing further pressure on businesses relying on simplified regimes.

Looking further ahead, new reforms will require systems to support real-time chain-of-custody visibility, risk metrics and enhanced data transparency. The EU’s wider customs reform programme includes plans for a single EU Customs Data Hub and a new EU Customs Authority. Under this approach, data would be submitted once into a unified environment, with customs authorities conducting risk analysis centrally. Over time, trusted traders may benefit from near-automatic clearances with minimal checks for low-risk movements.

“There is a growing realisation that international freight businesses will need to adapt to survive, and operators constrained by paper-based systems or those delaying preparations for incoming changes face significant risk,” adds Sarah-Louise. “We are using our longstanding customs expertise to help customers adapt their procedures, improve their systems or implement software integrations, so they can avoid supply chain disruption, loss of business and damage to their reputation.”

As we move toward 2026, we remain committed to guiding our customers through every stage of these regulatory changes. By investing in advanced digital solutions and strengthening compliance capabilities, we will continue helping businesses stay resilient, competitive and fully prepared for the evolving customs landscape.