The Customs Reform of 2025 introduces significant changes for companies operating in international trade, aiming to simplify operations, improve compliance, and promote sustainability. With Legislative Decree No. 141 of September 26, 2024, the Italian customs regulations have undergone substantial updates, offering significant advantages for businesses and industry operators.
In this article, we delve into the key points of the reform, analyzing its practical implications and how to adapt to the changes.
Key points of the customs reform 2025
Regulatory simplification and sanctions system
One of the most notable changes concerns the simplification of customs regulations. The previous 400 provisions have been reduced to just 122 articles, a significant reduction that makes the legislative framework leaner and more comprehensible. This initiative aims to eliminate regulatory redundancies and provide companies with a clear and accessible reference, reducing time and costs related to administrative management.
Additionally, a major highlight is the update to customs sanctions, which now distinguish more clearly between administrative and criminal offenses. For instance, the crime of smuggling has been divided into two main categories: false declarations, which occur when provided information is incomplete or inaccurate, and failure to declare, when goods are not declared at all. Penalties have also been redefined to be more proportionate to the severity of the violation, ensuring greater fairness in sanctioning processes.
This change aims to facilitate compliance for companies, reducing the risk of interpretative errors and potential penalties.
Digitalization of customs procedures
Digitalization is a cornerstone of the customs reform, designed to revolutionize the management of trade flows. As of January 21, 2025, the NCTS Phase 5 system has come into effect, eliminating the use of paper forms in favor of digital customs declarations. This ensures not only greater operational efficiency but also more precise control over transaction data. The update aims to expedite customs transit operations, reduce errors, and enhance security, enabling a more transparent and automated management of trade flows.
Additionally, new digital procedures were implemented for exports starting in December 2024, improving export efficiency and cutting bureaucratic delays.
New combined nomenclature TARIC 2025
Effective January 1, 2025, the new TARIC has updated the Combined Nomenclature by adding specific categories for products such as fish and seafood, tomatoes, mineral oils, and wooden panels. This update reflects the evolution of international markets and provides a more detailed classification system to improve the application of customs duties and trade measures.
As a result, companies must pay close attention to these updates to ensure the correct classification of goods and the proper application of customs tariffs.
Preferential origin rules of the PEM convention
Another key aspect of the reform concerns the new preferential origin rules introduced by the Pan-Euro-Mediterranean (PEM) Convention, which became effective on January 1, 2025. These rules mark a significant step forward in making trade between the 23 contracting countries more flexible and inclusive, enhancing the competitiveness of European and Mediterranean companies in global markets. Specifically, they offer greater flexibility to economic operators by increasing the tolerance thresholds to 15% and expanding the duty-drawback, allowing for broader recovery of customs duties.
These changes promote trade with the 23 contracting countries of the PEM Convention, creating new opportunities for Italian businesses.
VAT among border duties
As of October 4, 2024, import VAT has been formally included among customs duties, except in cases where goods are released for consumption in another EU Member State. This adjustment simplifies fiscal operations and aims to ensure greater uniformity and transparency in international trade relations.
How to adapt to the new regulations
To prepare for the changes introduced by the 2025 Customs Reform, companies must focus on several key actions. IT systems need to be updated to ensure compatibility with the new NCTS Phase 5 system, enabling the digitization and optimization of customs declarations. At the same time, staff training is essential to ensure a full understanding of the new operational procedures and the proper handling of goods according to TARIC classification.
For this reason, collaborating with reliable partners like CTI can help manage regulatory complexities and align internal procedures with the new compliance rules.
Why the reform matters for the logistics sector
The 2025 Customs Reform is not just a regulatory update; it is a genuine opportunity to enhance the competitiveness of the Italian logistics sector. Thanks to simplification and digitalization, companies will be able to reduce operating costs, improve delivery times, and increase transparency and traceability of operations. The NCTS Phase 5 system, for example, enables continuous monitoring of goods, improving security and reducing errors during transit. Additionally, the TARIC update provides a clear and detailed reference for goods classification, helping to avoid disputes or delays caused by regulatory discrepancies. This increased logistical efficiency translates into a competitive advantage for Italian companies in the global market.
In conclusion, the 2025 Customs Reform represents a turning point for international trade, offering innovative tools to address the challenges of globalization. For companies, promptly adapting to these changes is essential to remain competitive and seize new opportunities offered by the global market.
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