France’s removal of regime 42: What it means for UK–EU DDP shippers

A major customs change is on the horizon for UK exporters. France will remove Regime 42 on 1 January 2026, ending the mechanism that currently allows goods to enter France without import VAT when they are destined for other EU countries.

Although under-reported, the impact will be felt sharply across the Dover–Calais crossing, the busiest and the primary gateway for UK goods moving into mainland Europe.

Why the end of Regime 42 matters

For many UK exporters trading on Delivered Duty Paid (DDP) terms, Regime 42 has long been a vital mechanism. It allows import VAT to be accounted for in the destination country rather than in France. Once the French government removes Regime 42, DDP shipments entering France will automatically create a French VAT liability unless the UK exporter has an active French VAT registration.

This introduces:

• New VAT compliance obligations
• Potential financial exposure
• Additional administrative burdens
• Significant operational impacts for businesses that rely heavily on Dover–Calais

The alternatives: Rerouting or preparing for new VAT rules

A natural response to the loss of Regime 42 will be to consider alternative EU entry points. Belgium and the Netherlands have confirmed they will maintain their versions of Regime 42. However, these options come with compromises:

• Longer routes
• Higher transport costs
• Increased transit time
• Possible congestion if many exporters divert away from France

For most UK companies, the Dover–Calais corridor remains the fastest and most predictable route. Redirecting large volumes may cause significant bottlenecks across northern EU gateways.

Practical solutions for shippers after Regime 42 ends

Despite the upcoming regulatory shift, UK exporters still have several viable options to keep goods moving efficiently through France:

1. Use T1 Transit movements

Goods can enter France under the T1 transit procedure, allowing import VAT to be delayed and paid at the final EU destination. This method bypasses the need for immediate VAT settlement at the French border.

2. Register for French VAT

Shippers wanting to maintain the simplicity of the Dover–Calais route without relying on transit procedures may choose to secure a French VAT registration. This enables them to continue importing goods directly into France even after Regime 42 is removed.

3. Route shipments via Belgium or the Netherlands

Where operationally sensible, exporters may divert shipments to Dutch or Belgian ports, both of which will continue offering a version of Regime 42 beyond 2026.

For many DDP shippers, the most efficient strategy will combine French VAT registration with selective T1 transit use, balancing speed, cost and compliance.

For many DDP shippers, a combination of transit procedures or French VAT registration will provide the most workable balance of cost control, compliance and lead-time stability. The essential step is early review and planning before the 2026 deadline.

Logicall: Keeping your EU supply chain running smoothly post-Regime 42

Logicall’s customs and compliance experts in the UK and EU can help you assess your risk, map the best route forward and implement the right solution for your business.

Speak with our team today to ensure your EU operations stay seamless and compliant ahead of 2026.