Council of the European Union has approved new customs duty rules that will remove the long-standing duty-free threshold for small parcels entering the EU.
The change targets low-value imports linked to cross-border e-commerce and is expected to reshape pricing, sourcing and fulfilment strategies for retailers serving EU consumers.
From 1 July 2026, parcels valued at under €150 will no longer benefit from a customs duty exemption. Instead, a flat €3 customs duty will apply per item category in a shipment.
The measure forms part of a wider EU customs reform aimed at modernising border controls and addressing sharp growth in small parcel imports.
Low-value imports under scrutiny in eu retail market
The removal of the duty-free threshold responds to the rapid rise in cross-border online shopping. EU institutions report that billions of small parcels now enter the bloc each year, many shipped directly from non-EU sellers to consumers.
This surge has raised concerns about undervaluation, product safety compliance and competitive imbalance for EU-based retailers.
For international sellers and online marketplaces, the new small parcel customs duty introduces additional cost and administrative complexity. Retailers that previously relied on the €150 exemption may need to reassess pricing models, margin structures and supply chain planning.
The interim €3 charge will apply until a broader overhaul of the EU customs system is completed. That reform includes the creation of a centralised EU customs data hub designed to improve oversight of e-commerce imports and strengthen enforcement across member states.
Implications for cross-border e-commerce and pricing
The change is likely to affect fast-fashion brands, electronics sellers and marketplace platforms that ship low-value goods directly to EU customers.
Many such transactions have been processed under simplified customs procedures, making cross-border sales cost-competitive compared with domestic EU retail.
Retail analysts expect the new customs duty to narrow price gaps between overseas sellers and EU-based retailers. This may alter consumer purchasing behaviour, particularly in price-sensitive categories.
Logistics providers and fulfilment partners will also need to adapt systems to account for the flat-rate customs charge. Retail supply chains that depend on high volumes of small shipments could face operational adjustments ahead of the July 2026 implementation date.
Part of wider EU customs reform
The new rule sits within a broader EU customs reform package designed to modernise digital customs processes and improve risk management. Once the permanent system is in place, standard tariffs will apply to all imported goods based on classification, fully removing the low-value threshold.
For the global retail sector, the end of the EU’s duty-free loophole for small online parcels marks a structural shift in cross-border e-commerce.
Retailers targeting EU markets will need to factor in customs duty exposure as part of long-term growth planning, supply chain strategy and regulatory compliance.
The decision signals a tougher stance on low-cost imports and underlines the EU’s focus on creating a more level competitive environment for domestic and international retailers alike.
