January 2026 customs update

As we get underway in 2026, read about the new customs rules and regulations that are due to come into force over the next 12 months. 

Vaping product duty

HMRC has confirmed that a new Vaping Products Duty (VPD) and Vaping Duty Stamps Scheme (VDSS) will be introduced from 1 October 2026, marking the first excise duty applied to vaping products in the UK. The duty will apply to vaping liquids whether or not they contain nicotine, and most products released for UK consumption will be required to carry a duty stamp as visible evidence that duty has been paid. From 1 April 2026, manufacturers, importers, warehousekeepers and certain overseas producers supplying the UK market will need to apply to HMRC for approval to operate under the new regime, with HMRC warning that approvals may take up to 45 working days.
 

EU-UK reset

The UK and the EU continue working on resetting their post-Brexit relationship following the May 2025 summit, where leaders agreed on a series of trade and cooperation commitments aimed at reducing frictions that have built up since the UK left the EU. Parliament is now preparing a “EU reset” bill to give ministers powers to align UK regulations more closely with EU standards, particularly in areas like food, agriculture, energy and carbon markets, with the government arguing this will ease border costs and support exporters, although this is expected to face political scrutiny domestically. 
 

TCA review

The reset process is also tied to the 2026 review of the Trade and Cooperation Agreement (TCA), where both sides could build on existing frameworks through further sectoral deals such as sanitary and phytosanitary (SPS) alignment, emissions trading linkages and youth mobility agreements. Meanwhile, many UK firms continue to report significant trade friction with the EU, highlighting the importance of delivering on reset commitments that reduce red tape and improve regulatory cooperation in 2026 and beyond.
 

CBAM update

The EU’s Carbon Border Adjustment Mechanism (CBAM) has now transitioned from its pilot reporting phase into a definitive regime as of 1 January 2026, requiring importers of high-emission goods such as iron & steel, aluminium, cement, fertilisers, hydrogen and certain electricity products to report embedded greenhouse gas emissions and purchase CBAM certificates. Recent amendments and implementing acts published in late 2025 introduce modest reliefs for some energy-exporting economies and propose changes to emissions factor calculations, but market uncertainty remains, especially around electricity transit and trade, until these reforms are fully agreed and enacted. Read more about this new regulation.

EUDR update

Following concerns from industry and authorities about readiness, the EU has formally amended the EU Deforestation Regulation (EUDR), postponing its application by 12 months so that large and medium operators must comply from 30 December 2026, and small and micro operators from 30 June 2027. The amendments also simplify compliance by placing the main due diligence burden on the first operator placing goods on the EU market, with downstream traders largely required only to retain reference details, while the core objective of reducing the EU’s contribution to global deforestation remains unchanged.
 

Brightfinch works closely with Business West. They are customs, excise and international trade specialists based in Manchester.