Key data
| Regulation | Agreement in the form of an exchange of notes EU–China (CELEX:22026X01952), pursuant to Article XXVIII of GATT 1994 |
|---|---|
| Publication | August 19, 2026 |
| Entry into force | July 31, 2026 |
| Affected parties | EU importers and exporters trading with China in products subject to tariff quotas |
| Category | European Regulation — Foreign Trade |
| Modified list | EU Schedule CLXXV (tariff concessions to the WTO) |
| Legal framework | Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 |
| Reason for change | Withdrawal of the United Kingdom from the European Union (Brexit) |
| Agreement signature | Geneva, October 17, 2025 |
European importers operating with China in products subject to tariff quotas face a change of rules with retroactive effect from July 31, 2026. The agreement, signed in Geneva on October 17, 2025, and published on August 19, 2026, under the reference CELEX:22026X01952, adjusts the EU's Schedule CLXXV—the document that records European tariff concessions to the WTO—to reflect the United Kingdom's departure.
The reason is technical but the impact is real: when the United Kingdom left the EU, the import volumes covered by the tariff quotas agreed with China no longer included the British market. This forced a renegotiation of how much can enter at reduced tariff rates and under what conditions, and that process culminates now with this agreement.
What does this regulation establish?
The agreement modifies the tariff concessions of the EU's Schedule CLXXV against China, under Article XXVIII of GATT 1994. This article allows WTO members to renegotiate their schedules of concessions when structural changes occur—such as the departure of a Member State—that alter the trade volumes originally agreed.
In practice, tariff quotas are import quotas: up to a certain volume, goods enter at a reduced tariff rate (or even zero); above that volume, the general tariff, which is higher, applies. With the United Kingdom's departure, the quota volumes had to be redistributed among the affected trading partners—including China—to reflect the new size of the EU-27 market.
| Element | Previous situation (EU-28) | Current situation (EU-27, from 31/07/2026) |
|---|---|---|
| Quota basis | Included the volume of imports from the United Kingdom | Excludes the volume corresponding to the United Kingdom |
| Schedule of concessions | Schedule CLXXV without post-Brexit adjustment | Schedule CLXXV modified by agreement with China |
| Negotiation framework | — | Article XXVIII of GATT 1994 |
| Effective date | — | July 31, 2026 |
Economic and operational impact
The adjustment of quotas can result in two opposite scenarios for importing companies:
- Reduction in volume with reduced tariff: If the quota has been reduced to reflect the market without the United Kingdom, companies that previously imported within the quota might now fall outside it and pay the general tariff, which is higher.
- Favorable redistribution: In some products, the renegotiation may have maintained or adjusted the quota so that preferential access for EU-27 operators remains guaranteed under conditions similar to those previously in place.
The concrete impact depends on the specific product and the quota to which it is subject. The sectors identified as most exposed are food, textiles, and manufacturing, which historically concentrate the largest volume of tariff quotas in Schedule CLXXV against China.
Operationally, companies that do not review their situation run the risk of planning import operations assuming tariff conditions that are no longer in force, which can generate unforeseen costs in customs clearance.
Who does it affect?
- European importers of Chinese products subject to tariff quotas in the EU's Schedule CLXXV.
- Food sector companies that import from China products with preferential import quotas.
- Textile sector companies with import operations from China under quota.
- Manufacturers and importers of manufactured goods that use tariff quotas to reduce procurement costs.
- Chinese exporters with destination EU whose commercial agreements are referenced to Schedule CLXXV.
- Foreign trade advisors, customs brokers, and CFOs of companies with supply chains that include China.
Practical example
Imagine a Spanish food sector company that regularly imports a Chinese product—for example, preserves or processed ingredients—covered by a tariff quota in Schedule CLXXV. Until now, it planned its annual purchases assuming it could import up to the quota volume at a reduced tariff rate.
With the entry into force of the agreement on July 31, 2026, that quota has been adjusted to exclude the volume that previously corresponded to the British market. If the company has not reviewed the new quota volume and continues importing with the previous planning, it may find that part of its import is no longer covered by the preferential quota and is subject to the general tariff—potentially several percentage points higher—in customs clearance.
The correct action is to verify, before each operation, the available volume of the specific quota for your product and adjust the schedule and volume of orders accordingly.
What should companies do now?
- Identify affected products: Review whether the products you import from China are included in the EU's Schedule CLXXV and whether they are subject to any tariff quota modified by this agreement.
- Consult the agreement text: Access the full text of the agreement (CELEX:22026X01952) on EUR-Lex to verify the new volumes and conditions of each quota relevant to your operations.
- Recalculate import costs: Update procurement cost models considering the new quota volumes. If the quota has been reduced, calculate the impact of the general tariff on the excess.
- Coordinate with the customs broker: Inform your customs agent or foreign trade department of the change so they correctly apply the new quotas in clearances from July 31, 2026.
- Review procurement contracts: If you have purchase contracts with Chinese suppliers that reference tariff conditions, verify whether price or cost clauses include adjustments for changes in quotas.
- Monitor quotas in real time: Tariff quotas have limited volumes that are exhausted during the year. Establish a tracking system for the status of relevant quotas to avoid surprises in customs clearance.
Frequently asked questions
When did the new EU-China tariff quota agreement enter into force?
The agreement entered into force on July 31, 2026. It was signed in Geneva on October 17, 2025, and published in the EU Official Journal on August 19, 2026, under the reference CELEX:22026X01952. Any import operation from that date must consider the new quotas.
Why are tariff quotas between the EU and China changing?
The change is due to Brexit. When the United Kingdom left the EU, the import volumes covered by the Schedule CLXXV quotas—which included the British market—no longer represented the EU-27 market. Article XXVIII of GATT 1994 requires renegotiating these concessions with the affected trading partners, in this case China, to redistribute volumes so they reflect the new size of the European market.
Which sectors are most exposed to this change in quotas?
The sectors identified as most exposed are food, textiles, and manufacturing, which historically concentrate the largest volume of tariff quotas in the EU's Schedule CLXXV against China. Companies in these sectors that import from China should prioritize reviewing whether their products are included in the modified quotas.
Where can I find which specific quotas have changed?
The full text of the agreement is available on EUR-Lex under the reference CELEX:22026X01952. It details the specific Schedule CLXXV quotas that have been modified. To identify the affected product codes, it is recommended to consult with a customs broker or foreign trade advisor.
What happens if my company continues importing with the quotas prior to the agreement?
If you apply quota volumes or conditions that are no longer in force, customs clearance may result in the application of the general tariff—which is higher—on the part of the import that exceeds the new quota. This generates unforeseen costs that can directly affect the margin of the operation. The effective date is July 31, 2026, so all operations from that date must comply with the new agreement.
Official source
Consult complete regulation in official source
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=CELEX:22026X01952