Two EU decisions mark a shift for Europe’s textile market

Two closely linked EU decisions are set to reshape the competitive landscape for Europe’s textile and apparel sector. Together, they signal a more assertive approach to market supervision at a time when circularity ambitions risk being undermined by fast-growing ultra-fast-fashion platforms.

In November, EU finance ministers agreed to remove the €150 duty exemption for small parcels — a loophole heavily exploited by Shein, Temu and others. From 2026, all parcels entering the EU will be subject to proper customs duties and declarations, closing a gap that has long favoured low-cost imports.

Just weeks later, EU institutions approved the reform of the Union Customs Code (UCC), introducing a more harmonised and data-driven customs system. New digital tools, including the EU Customs Data Hub, are designed to strengthen coordination between national authorities and make enforcement more consistent across the Single Market.

A clearer shift for Europe's textile market emerges

The sequence is telling: stricter rules will only matter if the EU has the capacity to enforce them. Ending the small-parcel exemption removes the legal loophole; the updated UCC provides the operational backbone needed to detect and act on non-compliance.For Europe’s emerging circular textile systems — from eco-design to future EPR schemes — this combination is critical. Without effective border controls, compliant producers risk being undercut before circularity can scale. So this is a clearer shift for Europe's textile market,

Fashion industry responds

Director General Isabelle Maurizi, European Branded Clothing Association

The latest decision has been well received by European apparel brands. In a statement, the European Branded Clothing Association (EBCA) called the UCC reform “a significant step toward a more effective and modern customs framework.”According to Director General Isabelle Maurizi, greater harmonisation and digitalisation will help enforce upcoming sustainability requirements while offering companies a more predictable regulatory environment.

EBCA also underlines that customs reform must align with broader EU legislation on products, sustainability and consumer protection to secure a genuinely level playing field.

EBCA Pressrelease:

2025-12- EBCA PR on UCC .pdf

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