The European Union has implemented three major regulatory changes in 2026 that fundamentally reshape how businesses ship goods to Europe. If you're importing to the EU, these new requirements demand immediate attention: ICS2 Phase 3, the Carbon Border Adjustment Mechanism (CBAM), and the EU Deforestation Regulation (EUDR).
For US businesses shipping to European markets, understanding these regulations isn't optional. Non-compliance can result in delayed shipments, rejected cargo at EU borders, financial penalties, and damaged customer relationships. Here's what you need to know to stay compliant.
ICS2 Phase 3: The New EU Import Security Standard
The Import Control System 2 (ICS2) represents the EU's modernized approach to cargo security. As of February 3, 2026, all importers must use the new version 3 (v3) messaging format across all transport modes, including ocean, air, road, and rail.
What ICS2 Requires
ICS2 mandates that detailed shipment information be submitted through an Entry Summary Declaration (ENS) before cargo arrives at EU borders. This isn't just a simple customs form. The system requires comprehensive data about your shipment, supply chain parties, and cargo contents.
Key data elements you must provide include:
Valid HS codes: At minimum, six digits are required, though many EU customs authorities now require eight digits or the full tariff code for accurate classification
EORI numbers: Your EU consignee or importer must have a valid Economic Operator Registration and Identification number, as must other EU-based parties in your supply chain
Complete party details: Full information on all sellers, buyers, consignors, and consignees involved in the transaction
Accurate product descriptions: Generic descriptions like "various goods" or "samples" will be rejected
Implementation Deadlines by Country
While most EU countries implemented ICS2 requirements in September 2025, several member states received temporary extensions. If you're shipping through Croatia, Latvia, Poland, Romania, or Slovakia, these countries will fully implement ICS2 requirements starting June 1, 2026.
However, the transitional period for legacy ICS1 system ended December 31, 2025. All shipments must now comply with ICS2 requirements, regardless of entry point.
Consequences of Non-Compliance
Failure to submit proper ICS2 documentation carries serious consequences. Your shipments may be delayed at borders, held for inspection, or rejected entirely. Additional costs from storage fees, demurrage charges, and expedited processing can quickly accumulate. In severe cases, customs authorities may impose administrative penalties.
The EU Commission is developing a multiple filing option for road transport, expected in the second half of 2026, which will allow different supply chain parties to contribute data to a single ENS. Until then, ensure one party takes full responsibility for complete ENS submission.
CBAM: Carbon Compliance Comes to EU Imports
The Carbon Border Adjustment Mechanism officially entered its compliance phase on January 1, 2026. After a transitional reporting period in 2025, importers now face financial obligations tied to the carbon emissions embedded in their products.
Which Products Are Covered
CBAM initially applies to six categories of carbon-intensive goods:
Cement and related products
Iron and steel
Aluminium
Fertilizers
Electricity
Hydrogen
If you import any of these products into the EU, CBAM requirements apply to you. The EU plans to expand coverage to additional carbon-intensive sectors in future years.
2026 Compliance Requirements
Starting January 1, 2026, EU importers bringing in more than 50 tonnes of CBAM-covered goods annually must obtain a CBAM account number or application reference number. The deadline to submit authorization applications is March 31, 2026. If you apply by this date, you can continue importing while your authorization is pending.
The 50-tonne threshold provides relief for smaller importers, but note that hydrogen and electricity are excluded from this exemption regardless of volume.
How CBAM Certificates Work
Although the compliance phase began in 2026, the first actual certificate surrender won't occur until 2027. You'll need to purchase CBAM certificates retroactively starting February 1, 2027, covering emissions from goods imported throughout 2026. These certificates will be priced at the average quarterly EU ETS (Emissions Trading System) price for 2026.
Your first annual CBAM declaration and certificate surrender deadline is September 30, 2027, covering all imports from 2026. Starting in 2027, quarterly holdings requirements kick in, requiring you to hold certificates covering at least 50 percent of year-to-date embedded emissions at the end of each quarter.
What You Need to Track
To comply with CBAM, you must collect detailed information about the embedded carbon emissions in your imported products. This requires working closely with your suppliers to obtain accurate emissions data, production methods, and any carbon pricing already paid in the country of origin.
Start building these data collection processes now. The 2027 deadline may seem distant, but gathering a full year of emissions data for 2026 imports requires immediate action.
EUDR: Deforestation-Free Supply Chains
The EU Deforestation Regulation targets seven key commodities: cattle, cocoa, coffee, palm oil, rubber, soy, and wood, along with various derived products. If you import any of these commodities or products containing them (such as furniture, chocolate, leather goods, or paper products), EUDR compliance is mandatory.
Key Compliance Dates
After a postponement of the original deadline, the EUDR now has staggered implementation dates based on company size:
December 30, 2026: Large and medium operators must comply
June 30, 2027: Small and micro enterprises must comply
However, micro and small operators already covered by the EU Timber Regulation (EUTR) must comply by December 30, 2026, regardless of size.
Due Diligence Requirements
EUDR establishes a critical cutoff date: December 31, 2020. You must ensure that land associated with producing your commodities has not been subject to deforestation or forest degradation since this date. This requires rigorous due diligence throughout your supply chain.
Before products enter the EU, you must submit a due diligence statement to EU authorities demonstrating that your products are deforestation-free and were produced in compliance with the export country's relevant local laws.
What Information You Must Collect
EUDR due diligence goes beyond traditional supply chain documentation. You need:
Geocoordinates: Precise location data for production sites throughout your supply chain
Product descriptions: Detailed information about the commodity and derived products
Production dates: When and where production occurred
Legal compliance verification: Evidence that production met all relevant local laws in the country of origin
The geocoordinate requirement presents the biggest challenge for many businesses. You'll need to trace your supply chain back to the actual production locations and obtain geographic data from your suppliers.
Upcoming Review and Simplifications
The European Commission will conduct a comprehensive review of EUDR by April 30, 2026, with the goal of identifying additional simplifications to the legislation. While this review may provide some relief, don't delay compliance efforts waiting for potential changes. The core requirements and deadlines remain in place.
How These Regulations Interact
For many businesses, all three regulations apply simultaneously. Consider a US company importing wooden furniture to the EU. You'll need to:
Submit ICS2 ENS documentation with proper HS codes and EORI numbers before the shipment arrives
Verify that the wood used in production meets EUDR deforestation-free requirements with proper geocoordinate data
If the furniture includes steel components covered by CBAM, track and report carbon emissions data
This layered compliance burden requires integrated systems and processes. Siloed approaches where different departments handle each regulation independently create gaps and inefficiencies.
Practical Steps for Compliance
1. Conduct a Product Audit
Start by identifying which of your products fall under each regulation. Map your entire product catalog against ICS2, CBAM, and EUDR requirements. This audit reveals your compliance scope and helps prioritize efforts.
2. Engage Your Suppliers Early
These regulations require data you may have never collected before: emissions calculations, geocoordinates, detailed production information. Your suppliers must become active partners in compliance. Reach out now to establish data-sharing protocols and ensure they understand EU requirements.
3. Implement Data Collection Systems
Manual compliance tracking becomes unmanageable at scale. Invest in systems that can capture, store, and retrieve the required data for each shipment. Look for solutions that integrate with your existing supply chain management tools.
4. Get Professional Guidance
The complexity of these regulations makes professional customs brokerage and compliance support valuable. Experienced freight forwarders like Cubic can navigate the technical requirements, ensure proper documentation, and help avoid costly mistakes.
5. Build in Lead Time
Don't wait until shipment day to gather compliance documentation. Build additional lead time into your ocean freight and air freight planning to allow for proper data collection, verification, and submission.
6. Monitor Regulatory Updates
EU regulations continue to evolve. The Commission's April 2026 EUDR review, the second-half 2026 ICS2 multiple filing option, and ongoing CBAM scope discussions all signal future changes. Stay informed about updates that affect your business.
The Cost of Non-Compliance
Beyond immediate penalties and delays, non-compliance damages your business in less obvious ways. Customers in the EU increasingly expect environmental and regulatory compliance from their suppliers. Businesses that demonstrate proactive compliance build competitive advantages, while those struggling with basic regulatory requirements lose market access and customer trust.
The freight industry saw significant disruptions throughout 2025, from Suez Canal closures to port congestion. Adding regulatory non-compliance to operational challenges compounds problems. In today's tight margin environment, delays and penalties from preventable compliance failures can devastate profitability.
Looking Ahead
The January 2026 implementation of these three major EU regulations represents a permanent shift in international trade compliance requirements. This isn't a temporary challenge to overcome, but rather the new baseline for doing business with European markets.
US businesses that view compliance as a strategic priority rather than a bureaucratic burden will be best positioned to capitalize on EU market opportunities. Those treating these regulations as administrative checkboxes risk serious operational and financial consequences.
The complexity of modern international shipping requires partners who understand both the logistics and regulatory landscape. Whether you're shipping a single container or managing complex supply chains across multiple countries, having experienced guidance makes the difference between smooth operations and costly disruptions.
Get Expert Help with EU Compliance
Navigating ICS2, CBAM, and EUDR requirements doesn't have to be overwhelming. Cubic's team stays on top of evolving EU regulations and helps businesses maintain compliant operations. Our customs brokerage services ensure your documentation meets all requirements, while our integrated platform provides visibility across your entire supply chain.
Ready to ensure your EU shipments meet 2026 compliance requirements? Get a quote from Cubic today and ship with confidence.
