As 2025 approaches, customs, export control, and sanctions professionals will face a host of critical developments that could significantly impact their operations and compliance strategies.
From significant regulatory changes to expanding global sanctions regimes, 2025 will be a year of transformation in international trade and security. Here’s a closer look at some of the most pressing changes and challenges on the horizon.
1. New Computerized Transit System (NCTS) Phase 5
By January 21, 2025, NCTS Phase 5 must be fully implemented. This upcoming phase is anticipated to introduce numerous alterations to the transportation of goods within the European Union and globally. A key modification will involve enhanced data prerequisites, encompassing more information on shipments that are presently not included in current systems. It is imperative for customs experts to verify that their systems are revised to adhere to these fresh demands and meet the specified deadline.
This change will significantly impact logistics and transit processes, and failure to comply could lead to delays, penalties, or disruptions in the supply chain. For many businesses, preparing for this transformation will be a major undertaking in 2025.
Join Our Free Webinar on 5 December 2024: 2025 Outlook – EU-UK-US Customs & Export Controls & Sanctions (see more information below)
2. EU Customs Reform and the Data Hub
The EU is preparing for significant changes in customs procedures by introducing the Data Hub. Initially, this will be accessible for e-commerce shipments in 2028, with the possibility of extending it to all importers as early as 2032. However, a review in 2035 will determine whether it will become obligatory for all traders by 2038.
For now, e-commerce companies should prepare for the implementation of the Data Hub, while other businesses should keep themselves updated on potential forthcoming modifications. As customs procedures become increasingly digitalised, professionals must stay informed about these advancements to ensure compliance and competitiveness. 2025 will see further developments that we need to be aware of.
Join Our Free Webinar on 5 December 2024: 2025 Outlook – EU-UK-US Customs & Export Controls & Sanctions (see more information below)
Top Tip: Invite your colleagues and trade partners to join us, too.
3. Expanding Sanctions and Export Control Regimes
The global landscape for sanctions and export control regimes is evolving rapidly. In particular, sanctions against certain countries, such as Russia, remain a top priority. The UK and its international partners have imposed stringent sanctions to restrict Russia's access to Western technology and financial systems. For customs and export professionals, ensuring compliance with these measures will be critical to avoid the risk of hefty fines or criminal prosecution.
Sanctions are becoming more complex, with new designations, broadening sectors of restriction, and enhanced monitoring systems. The ongoing changes in the EU’s export control regimes for dual-use items—those that have both civilian and military applications—require continuous attention. Professionals in this space must ensure they are up-to-date with the expanded lists of controlled dual-use items, ensuring that no unauthorised export takes place.
4. Dual-Use Goods and Export Controls
Dual-use items (goods, software, or technology that can be used for civilian and military purposes) will continue to be tightly regulated. The EU and other jurisdictions maintain strict export control measures to prevent these items from being used in ways that could threaten international peace and security. Professionals must stay informed on the latest controls, as the scope of what constitutes a dual-use item is regularly updated.
With the increasing emphasis on controlling sensitive technologies and preventing the proliferation of weapons, export control professionals will need to bolster their knowledge and compliance efforts to avoid penalties and reputational damage.
5. Trump Tariff II and Escalation of Trade Tensions
A significant event expected to shake up international trade is the Trump Tariff II. These tariffs are expected to come into force in 2025 and will likely majorly impact global trade relations. The tariffs are expected to affect a wide range of goods, with industries across the globe bracing for the effects. Some experts predict that these tariffs could escalate trade tensions and even trigger trade wars between key global economies.
Professionals in customs and export control will need to understand how these tariffs impact their specific sectors and devise strategies to mitigate the effects. Ensuring compliance with tariffs, navigating new import/export barriers, and adjusting trade routes will be crucial tasks in the coming year.
Navigating U.S. Trade Under a Trump II Administration12 Dec 2024, 10:00 – 11:00 GMT Virtual Event Using Zoom What will the second Trump administration mean for customs, import into and export out of the US? Join us on 12 December 2024 for an exclusive webinar to explore the impact of expanded tariffs and U.S. trade policy shifts. Secure your spot today! |
Interested in weekly updates on Trump Tariffs? Leave your e-mail address at www.csustomsmanager.info to sign up to our trade intelligence update service.
6. The End of the CBAM Transitional Period
The EU’s Carbon Border Adjustment Mechanism (CBAM) is another critical development, with the transitional period set to end on December 31, 2025. The CBAM, which aims to level the playing field between European and non-European producers by imposing carbon taxes on imported goods, will require businesses to report carbon emissions linked to their products starting in 2026.
This means that businesses and professionals in the trade, logistics, and customs sectors must ensure they are ready for the full implementation of CBAM. The transitional period ends in 2025, and organizations must prepare to collect and report detailed emissions' data for their imports. Failure to comply could lead to significant fines or market access issues.
Speaking of CBAM, there are three trainings that I recommend to you:
EU CBAM Fundamentals (Training): Unlock expertise in the EU's Carbon Border Adjustment Mechanism (CBAM) with our live online 4-hour course. Master CBAM’s essentials, compliance steps, and critical terms. Perfect for customs managers, import/export pros, and more. Join us online—book now!
CBAM Report Filing (Workshop): Join us for this four-hour virtual online workshop on successfully filing the CBAM report to the EU Commission. This is a workshop for EU importers of CBAM goods and their indirect representatives or agents filling on their behalf.
Effective CBAM Supplier Coms (Workshop): Join us for this four-hour hands-on virtual online workshop. Design the perfect communication and information strategy to convince your overseas suppliers to provide accurate, complete and timely CO2e data for your CBAM report.
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7. The EUDR and Its Upcoming Impact
Alongside CBAM, the EU Due Diligence Regulation (EUDR) will also come into force, or at the very least, demand significant preparations from businesses in 2025. The EUDR requires companies to demonstrate that they are not contributing to deforestation or human rights abuses in their supply chains. The regulation will likely require companies to conduct thorough supply chain audits, implement traceability systems, and develop detailed due diligence processes. For professionals in customs, export control, and sanctions, this will mean a significant shift in how they handle imports and exports. It will also increase the demand for systems that can track the origin of goods and the sustainability of the supply chain.
Mastering EUDR for Import and Export (Training): Join “Mastering EUDR for Import and Export” to understand the EU’s regulation on deforestation-free products in depth. Learn to identify EUR-regulated products, handle compliance, and issue Due Diligence Statements.
8. Changes to Harmonised System (HS) and Dual-Use Codes
Another change looming on the horizon is the revision of HS codes and dual-use codes, which will be updated in 2025. These changes are necessary to reflect new products, technological advancements, and evolving global trade needs. Customs professionals will need to ensure that their product classifications are updated to remain compliant with new tariff codes and regulations.
Failure to classify products correctly could result in delays, penalties, or even trade restrictions, making it critical for professionals to stay ahead of these updates.
Interested in details on what HS and dual use godos change? Leave your e-mail address at www.csustomsmanager.info to sign up to our trade intelligence update service.
Conclusion: Navigating the Risks and Opportunities in 2025
In 2025, customs, export control, and sanctions professionals will face a crucial year. The environment is evolving quickly, with the introduction of new systems such as NCTS Phase 5 and the conclusion of the CBAM transitional period. Professionals need to get ready for changes in trade regulations, stricter export controls, and fresh responsibilities concerning carbon emissions and supply chain due diligence. I, along with Customs Manager Ltd, will support you every step of the way!
With the potential for escalating trade tensions, especially with the introduction of new tariffs and sanctions, navigating these challenges will require agility, diligence, and a keen understanding of global trade dynamics. For those who stay ahead of these changes, 2025 will present an opportunity to ensure compliance, enhance operational efficiency, and mitigate risks.
As a customs or sanctions professional, your role in managing these complexities will be more crucial than ever. The decisions you make in 2025 could define your success in the future. Are you prepared for what lies ahead?
organisations
Date & Time: 05 December 2024
10:00 – 11:00 GMT
Virtual Event via Zoom
As the year draws to a close, we invite you to our final webinar of 2024, where we will offer a comprehensive overview of the anticipated changes and trends in customs regulations, export controls, and sanctions for 2025. This insightful session will cover key updates for the EU, UK, and US, particularly in light of the upcoming U.S. elections.
What We Will Cover:
Anticipated 2025 HS (HTS) Changes in the EU, UK, & US
Upcoming FTAs (Free Trade Agreements) in the UK, EU, and US
2025 EU Export Control - Dual Use Amendments
Current Status of Sanctions in the EU, US, and UK following a Trump II Presidency
Prospective Law or Policy Adjustments: CBAM, EUDR, ICS2, UK S&S ENS, and more!
Important Details:
Seats are Limited: We have only 100 seats available, and they will be allocated to the first 100 participants who connect.
Access to Recording & Slides: If you can’t attend live, don’t worry! The recording and slides will be made available in the 2025 - Update Bundle, which you can download after the webinar at www.customsmanager.org/shop.
Want to Dive Deeper?
To further explore the 2025 customs, export control, and sanctions updates, consider joining our 4-hour intensive deep-dive sessions. These sessions will allow us to address your questions and delve into the changes in even more detail.
2025 EU & UK Customs Update (Training)
Virtual Training Event
Dive into the latest customs changes for 2025. Join us for an update online training where you'll unravel the 2025 updates of customs law with industry experts.
2025 Export Control & Sanctions Update (Training)
Details to come
Virtual Training Event
Explore the most recent updates in export control and sanctions for 2025. Participate in our online training session to gain insights into the changes in export control and sanctions law for 2025, led by industry experts.
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