Customs Practices Are No Longer Paperwork, but Risk Management for the Entire Business
What long seemed like a mere administrative formality has today become a strategic risk: even a small mistake in a customs declaration can have major consequences for an entire organization.
From tariffs and new laws to geopolitical tensions and sanctions: customs practices are more complex than ever. A single mistake can have an enormous impact on the entire business of companies and their logistics partners. Properly completing forms, supported by reliable technology, is therefore no longer a purely administrative task but a strategic necessity, one that makes risk management a top priority.
The tariff war was undoubtedly one of the most discussed topics in 2025. While tariffs themselves are not new, the uncertainty surrounding import duties made everything more complicated than ever, and 2026 will be no different. In fact, new legislation will likely increase complexity even further. On 30th December 2026, the EU Deforestation Regulation (EUDR) will come into effect for large and medium operators. This measure requires that goods entering Europe must not be the result of deforestation or illegal practices. This includes raw materials such as timber, rubber, cocoa, and livestock, but also manufactured products such as tires or leather handbags. For companies, this means that incomplete or incorrect origin information is no longer just an operational shortcoming but a compliance risk with direct financial implications.
Another piece of European legislation shaping this year is CBAM, the Carbon Border Adjustment Mechanism. It applies a price to imports of materials such as steel and cement to prevent companies from circumventing EU climate rules. Outside the EU, China is tightening controls on critical minerals and technology, while the United States is strengthening its borders and expanding oversight on technology. Together, these developments contribute to an increasingly fragmented and unpredictable trade landscape.
Companies would be wise to take this seriously, as sanctions can have major consequences. Yet in practice, risks often only become visible once delays, fines, or blockages have already occurred. Logistics partners in particular must be able to trace the origin of goods. We frequently see shipments being rerouted only to end up in sanctioned markets anyway. Conversely, goods sometimes arrive in Europe at bargain prices despite not meeting EU regulations. As a result, border checks are becoming even stricter.
From Reactive Operations to Proactive Risk Management
One thing is clear: customs declarations will become even more complex in 2026. Common pitfalls include incorrect tariff codes, unclear certificates regarding origin, inaccurate valuations, and so on. In the past, companies often took a reactive approach, waiting to see whether a declaration would be approved. Today, that passive attitude is downright risky. Businesses must act proactively and identify risks before they materialize. Digitalization and AI are essential, especially for organizations handling massive volumes of customers, documents, and declarations. Technology not only saves time but also reduces the risk of manual errors or knowledge gaps among employees.
Companies are aware of this, but there is still a long way to go. A survey conducted during the previous Customs Forum in the Netherlands revealed that 39% of respondents are running AI pilot projects, while a quarter have not yet started. Only 5% have fully adopted the technology in their workflows. So, there is a desire for innovation, but with caution, in a landscape dominated by risk and regulation.
In any case, awareness is growing that customs processes are undergoing a major organizational shift. Declarations are evolving from an administrative workload into a strategic asset increasingly discussed at the executive level. Decisions on procurement, suppliers, and routing now rely more heavily on input from customs experts who assess factors such as origin, valuation, classification, and compliance.
Faster and Less Prone to Error
With talent scarce in the labor market, organizations will increasingly outsource customs practices to external professionals to reduce the risk of violations, delays, and fines. Outsourcing does not mean loss of control, it is a way to structurally manage risks. Outsourcing to specialized partners also gives companies quicker access to modern technologies that use data to improve visibility and enable predictive analytics. While such tools are becoming the norm in many areas, customs data remains a weak link because information is scattered across forwarders, formats, and systems.
The solution lies in centralizing these practices within a consolidated model that captures all data in a uniform way. Successful (logistics) companies use a mix of systems and technologies, tools that efficiently detect regulatory or political changes, ensure data quality through up-to-date classifications, and provide workflows that speed up processes while reducing errors.
Looking Toward 2030
This should be the year in which companies gain clear insights into the duties they pay and identify opportunities to save or avoid costs. Despite increasing complexity, the basics still matter: accurate product classification remains the backbone of every resilient supply chain.
Smart digitalization is not only crucial for mitigating the impact of tariffs, sanctions, and conflict, it also prepares businesses for the EU’s plan to harmonize and almost fully digitize customs procedures by 2030. This will require investments in software, reliable data, classification systems, and personnel capable of keeping up with new processes and regulations. Ultimately, AI’s strength lies in relieving routine tasks, while the expertise of professionals remains just as important. Companies that fail to invest in digitalization and customs expertise today risk delays, fines, and missed opportunities. Those that act proactively will use AI and centrally organized data to make customs processes agile, fast, and low-risk.
Kurt Crauwels, Managing Director Customs Support Group Belgium
This article was originally published on Wednesday, 4 March 2026. Read the original article here.
