EU to End €150 Customs Exemption on Low-Value Imports

EU economy ministers have agreed to remove the €150 customs duty exemption on low-value parcels entering the Union, a decision that will significantly affect the cross-border shipping model used by platforms such as Shein and Temu. The move is part of a broader effort to modernise the EU’s customs framework and respond to the rapid rise in e-commerce imports. The move mirrors actions taken in the United States, where the long-standing “de minimis” exemption (allowing duty-free goods under US $800) was formally eliminated effective 29 August 2025.

Customs Duties Payable From the First Euro

Under the agreement, all imported goods—regardless of value—will become subject to customs duties, aligning duties more closely with VAT rules. Officials say the exemption, introduced when parcel volumes were far lower, no longer reflects the scale of today’s cross-border commerce.

EU Trade Commissioner Maroš Šefčovič described the decision as an important signal that the EU intends to maintain fair competition for businesses operating within the single market.

According to EU Economy Commissioner Valdis Dombrovskis, 4.6 billion parcels entered the EU in 2024, with the vast majority shipped from China. He noted that the trend has continued to accelerate.

Rollout Expected From 2026

Member states will meet again in December to define a temporary mechanism that would allow the new rules to take effect. The Commission says the EU could be ready to implement the changes as early as 2026, depending on the pace of negotiations.

A European diplomat involved in the talks said ending the exemption would close loopholes that have enabled some sellers to under-declare shipments and avoid duties.

Impact on Cross-Border E-Commerce Platforms

The reform comes as Shein, Temu and other cross-border platforms expand aggressively across the EU using high volumes of low-value parcels. Shein is also facing separate legal scrutiny in France following proceedings related to the alleged sale of child-like sex dolls.

In addition to the exemption change, member states are also reviewing a proposed €2 levy on small parcels, initially introduced by the Commission in July.

National Measures Advance in Parallel

Several EU countries are preparing complementary policies. Italy is designing a tax intended to support its domestic fashion sector, which faces pricing pressure from low-cost imports.

“We are satisfied with the introduction of a tax on small parcels from non-EU countries,” Italy’s Minister of Economy Giancarlo Giorgetti said, citing the growing impact on local retailers.

Retail Sector Calls for Coordination

European retail groups are urging governments to ensure that new measures do not fragment the single market. EuroCommerce, which represents EU retailers, warned that a patchwork of national policies could complicate compliance for businesses.

“A swift, harmonised EU solution is essential to maintain a level playing field,” said Christel Delberghe, Director General of EuroCommerce.

The key question now is how quickly platforms and retailers will adapt their cross-border strategies once the new rules take effect – and it’s something we’ll be keeping a close eye on in the months ahead. 

Source: euronews.com