International freight businesses will increasingly enter a period of significant regulatory transformation, with both the UK and EU accelerating customs reform. New requirements starting from 2026 will impose higher levels of digitisation, automation, and electronic reporting across cross-border trade operations. Those companies unable to adapt face increased costs, shipment delays, regulatory penalties, and heightened operational exposure.
Industry experts are warning that many freight operators could be underestimating the scale of change ahead. Processes which work today, but which depend on manual input or paper documentation, may not be fit for future customs frameworks.
Sarah-Louise Murray, Customs Manager at leading customs clearance specialist Derry Bros, has warned that many organisations risk serious disruption if preparations are delayed. In the run-up to key changes in UK and EU customs this year, Ms Murray says a step-change will be required in how freight businesses manage compliance, data, and reporting.
Why Digitisation Is Becoming Non-Negotiable for International Freight Businesses in Customs Compliance
International freight businesses, Murray says, would have to reduce dependence on manual workflows and paper-based systems. This will demand upfront investment in robust digital infrastructure, data with high degrees of accuracy for management, and internal compliance controls.
It will be even more important in the future to adhere to evolving UK and EU customs requirements if there is to be any avoidance of penalties and border delays, not to mention service reliability and commercial competitiveness in increasingly complex supply chains.
Important Changes to UK and EU Customs That International Freight Businesses Must Be Prepared For
Several major regulatory initiatives, which had been postponed once in the past, are now slated to go into effect at the beginning of 2026. These include the EU’s Import Control System 2 (ICS2) Phase 3 and France’s Enveloppe Logistique Obligatoire (ELO).
But aside from these headline changes, a wider range of customs reforms significantly reduces the margin for error at UK and EU borders. The enforcement is tightening, and the consequences of inaccurate or incomplete declarations are becoming more severe. Goods may be delayed, refused entry, or subject to financial penalties, increasing both cost and risk for freight operators.
UK Customs Reform: Greater Transparency and Accountability for International Freight Businesses
From March 2026, one of the most significant changes in the UK will be giving businesses free, self-service access to their own customs declaration data, the very same information reviewed by HMRC.
This change represents a shift to mutual responsibility. Demands for internal compliance, data accuracy, and proactive checking will grow; thus, it would fall squarely on the shoulders of enterprises to highlight discrepancy issues much before it raises alerts at the enforcement agency level.
Statutory updates recently published under Customs Miscellaneous Amendments 2025 introduce changes to declaration processes, temporary admissions, and oral, or “by conduct”, declarations. Alongside this, HMRC’s 2025–26 transformation roadmap sets out a future driven by automation, digitalisation, and predictive compliance.
EU Developments: Fiscal Representation and VAT Compliance Tighten for International Freight Businesses
On the EU side, France announced the abolition of limited or ad hoc fiscal representation under Regime 42 for non-EU businesses. The result is that this will impact UK companies directly that have relied on simplified fiscal representation arrangements to move goods into the EU.
The new regime will ensure that the affected businesses are fully VAT-registered and completely tax-compliant, adding more administrative complexity and increasing compliance costs. The growing concern is that other member states may then introduce similar measures, thus creating increased pressure on non-EU sellers operating under representative or simplified regimes.
Long-term EU Customs Reform and the Step to Centralized Data for International Freight Businesses
Looking further ahead, international freight businesses will also have to prepare for structural reform across the whole EU customs landscape: the EU is advancing plans to establish both a single EU Customs Data Hub and a new EU Customs Authority.
Under this approach, traders could file information once in an integrated digital platform where the customs administration conducts centralized risk assessment and clearance decisions gradually rely more on trust, classification, and data quality instead of human intervention.
In turn, over time, companies granted “trusted trader” status might receive close to automatic customs clearance and far fewer physical inspections, assuming their systems allow for real-time visibility, chain of custody tracking, and robust risk metrics.
Why Preparation Early Is Important for International Freight Businesses
Murray points out that there is an increasing realization in the logistics industry that it has to adapt if it is to survive. Freight operators that delay making adequate preparation, or continue to use outdated, paper-based processes, raise the level of risk involved as regulatory deadlines draw near.
In contrast, however, early investors in digital customs platforms, system integrations, and compliance expertise will be in much stronger positions to protect the integrity of their supply chains, customer relationships, and operational resilience.
How Derry Bros Supports Customs Digitisation and Compliance for International Freight Businesses
With over 60 years of experience serving UK, EU, and international markets, Derry Bros supports international freight businesses through an extensive portfolio of customs, consultancy, and managed booking services. These capabilities are underpinned by a suite of award-winning, in-house technology developments, including Digicom—an all-in-one digital customs solution designed to enhance automation, compliance, and data transparency. Coupled with regulatory expertise, advanced technology helps Derry Bros guide businesses through the increasingly complex customs environment with minimal disruption and risk.