Compliance
Global Compliance in 2026: Key Cross-Border Rules and Customs Changes Businesses Can’t Ignore
Recent changes in customs origin rules, CBAM verification, and UK PE exemptions are reshaping cross-border compliance. Here’s what business owners and tax professionals must act on now.
By NomadicTax Research Team • 6 min read • August 24, 2026
## Union Customs Code and Proofs of Origin in the EU
Starting **1 July 2026**, the EU applied new amendments to the Union Customs Code Implementing Regulation (UCC-IA), particularly:
- Permitting **electronic certificates of origin** issued via the ELAN system for agricultural and certain special non-preferential arrangements while transitioning fully to ELAN by **January 2028 for issuing authorities** and **October 2028 for customs authorities**. ([taxation-customs.ec.europa.eu](https://taxation-customs.ec.europa.eu/news/commission-adopts-amendments-union-customs-code-implementing-act-streamline-application-non-2026-07-02_en?utm_source=openai))
- Introduction of **Article 59a**, which requires proof of **direct transport or non-alteration** for goods originating in the United States, to enforce correct application of adjusted duties and quotas under Regulation (EU) 2026/1455. ([taxation-customs.ec.europa.eu](https://taxation-customs.ec.europa.eu/news/commission-adopts-amendments-union-customs-code-implementing-act-streamline-application-non-2026-07-02_en?utm_source=openai))
### Action Items
- If you import into the EU, ensure certificates of origin are issued electronically or maintain documentation supporting transport/non-alteration.
- If currently relying on paper certificates, plan for full digital adoption before related ELAN deadlines.
## CBAM: Verification & Accreditation for Non-EU Operators
As of **24 August 2026**, the European Commission released guidance for verifiers and National Accreditation Bodies (NABs) under the EU CBAM regime. Highlights include:
- Verifiers for installations outside the EU imported goods must understand verification requirements applicable from **1 January 2026**. ([taxation-customs.ec.europa.eu](https://taxation-customs.ec.europa.eu/news/european-commission-publishes-guidance-cbam-verifiers-and-accreditation-bodies-2026-08-24_en?utm_source=openai))
- Entities will need accreditation first, then apply for access to the **CBAM Registry**; for goods shipped in, verified emissions (once in January 2027) can be used instead of default values. ([taxation-customs.ec.europa.eu](https://taxation-customs.ec.europa.eu/news/european-commission-publishes-guidance-cbam-verifiers-and-accreditation-bodies-2026-08-24_en?utm_source=openai))
### Action Items
- Non-EU producers exporting carbon-intensive goods to the EU should verify their emission monitoring plans, undergo accreditation, and ensure they can issue verified emissions reports.
- Engage early with NABs to ensure smooth registry access and build internal capacity for verification and documentation.
## UK: Foreign PE Exemption and VAT/Customs Modernisation
- UK companies with **foreign permanent establishments** will see profits and losses tapped into the new exemption for accounting periods beginning **1 January 2027**. For oil/gas PEs, from **1 September 2026**. ([gov.uk](https://www.gov.uk/government/publications/foreign-permanent-establishment-exemption/foreign-permanent-establishment-exemption-policy-paper?utm_source=openai))
- Other ongoing UK reforms include modernisation of VAT option-to-tax digital filing; stronger online marketplace VAT rules; import customs reforms; accelerating low-value import arrangements; digital carnets for temporary movement of goods across borders. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-2026-simplification-modernisation-and-fairness/tax-update-2026-simplification-modernisation-and-fairness-summary?utm_source=openai))
### Action Items
- Businesses operating via foreign PEs need to assess whether the exemption applies and restructure accounting periods where helpful.
- Online sellers should check whether marketplace liability and VAT obligations from overseas sellers affect them; they may need to register in multiple jurisdictions or collect VAT differently.
## U.S. Regulations: Foreign Government Investors & Sovereign Entities
The U.S. Treasury and IRS have issued proposed regulations under **Section 892** of the Internal Revenue Code regarding how foreign governments (including sovereign wealth funds) are taxed on passive U.S. investments. Key developments:
- Proposals clarify when a foreign government’s acquisition of debt becomes “commercial activity,” and when it has “effective control” over an entity. ([irs.gov](https://www.irs.gov/irb/2026-25_irb?utm_source=openai))
- Additional guidance offers **grandfathering protection and a transition period** of at least 90 days from publication date or until the start of the first taxable year after publication. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-section-892-proposed-regulations-to-provide-grandfathering-protection-and-transitional-relief-to-sovereign-investors?utm_source=openai))
### Action Items
- Foreign sovereign investors should review current holdings to determine if any may become subject under the new proposed “effective control” or debt-acquisition rules.
- Submit comments during any open stakeholder comment periods; track finalization of proposed regs to prepare for compliance.
## Overall Best Practices for Cross-Border Compliance
- Maintain tight documentation: contracts, proofs of origin, customs records, emission data if applicable.
- Review accounting periods, fiscal-year alignment, and entity structure in light of impending exemptions or new rules.
- Automate where possible: digital origin certificates, emissions reporting, customs declarations.
- Engage professional expertise in each relevant jurisdiction—local customs, environmental law, tax treaty interpretations.
Staying compliant across borders is complex—but recent reforms provide clearer rules and dates to plan around. Use this window to set up internal systems to meet new regulatory duties confidently and accurately.