The landscape of European import procedures is set to change significantly from 1st January 2026, with implications for businesses currently utilising Customs Procedure 42 (commonly known as “Regime 42”) for their EU trade operations.
What Is Changing?
The French Finance Act 2025 (LOI n° 2025-127 du 14 février 2025) has repealed Article 289 A III of the French General Tax Code, effectively ending the “one-off fiscal representation” mechanism that has been widely used by non-European companies for Regime 42 imports.
This change, which takes effect on 31st December 2025, represents a fundamental shift in how businesses outside the European Union can access this important customs procedure.
Understanding One-Off Fiscal Representation
Until now, non-EU businesses have been able to appoint freight forwarders or customs representatives to act as “one-off fiscal representatives” for Regime 42 imports. This arrangement allowed these representatives to use their own French VAT numbers for customs declarations, enabling non-EU companies to avoid the administrative burden of obtaining their own French VAT registration.
This mechanism has been particularly valuable for businesses using Delivered Duty Paid (DDP) terms, where goods are imported into France and immediately transported to other EU member states without paying import VAT upfront.
The New Requirements from January 2026
From 1st January 2026, non-European companies wishing to continue using Regime 42 will face new compliance obligations:
Direct VAT Registration: Companies must register directly with the French tax authorities and obtain their own French VAT number.
Independent Filing Obligations: Businesses will need to file their own French VAT returns, taking direct responsibility for their tax compliance.
Enhanced Administrative Burden: The simplified arrangement of delegating these responsibilities to third-party representatives will no longer be available.
Why This Matters for Your Business
This regulatory change affects any non-EU business currently using Regime 42 for importing goods into France as part of EU-wide distribution strategies. This includes British companies, which are specifically mentioned in the French legislation. The implications extend beyond simple administrative adjustments:
Alternative Approaches
The changes do not eliminate Regime 42 entirely, but they do alter the compliance landscape. Businesses may need to evaluate whether:
Looking Ahead
These changes reflect the continuing evolution of post-Brexit trade procedures and the EU’s approach to tax compliance. Businesses affected by these changes should begin planning now to ensure seamless continuity of their European operations.
The regulatory landscape continues to evolve, and staying ahead of these changes is crucial for maintaining efficient supply chain operations. Understanding how these new requirements interact with your specific business model and trade flows will be essential for making informed decisions about your European market strategy.
If your business currently uses Regime 42 or you’re evaluating your EU import procedures in light of these changes, we’d be happy to discuss how these developments might affect your operations. Our trade specialists, David Hooper and Jamie Harper of Hooper and Co International Trade Consultancy Ltd, can help you understand the implications for your business and explore the most suitable compliance approaches, including the practicalities of French VAT registration where required.