EU ends €150 duty-free rule to curb small parcel abuse

The Council has approved the changes to customs rules to address the surge of small parcels entering the Union without paying customs duties, a loophole that has fuelled unfair competition for EU businesses and raised environmental concerns, it said in a press release

The change will take effect once the EU customs data hub, an upcoming central platform designed to streamline interactions with customs and strengthen controls, becomes operational. The hub, currently expected in 2028 pending negotiations with the European Parliament, will allow authorities to calculate and notify customs debt on a per-item basis, making it possible to enforce full customs procedures on millions of small parcels.

Estimates indicate that up to 65 per cent of small parcels entering the EU are undervalued to avoid duties, with 91 per cent of shipments under €150 originating from China in 2024. The Commission has warned that the threshold incentivises non-EU sellers to split shipments into multiple parcels, worsening environmental impacts and distorting competition.

Recognising the urgency, the Council has also committed to a transitional, simplified mechanism to begin levying duties on low-value parcels from 2026 until the data hub is ready in 2028. Work on this temporary solution will advance in the coming weeks.

“I am very pleased that we have reached an agreement on eliminating the €150 customs threshold. We ensure that duties are paid from the first euro, creating a level playing field for European businesses and limiting the influx of low-cost goods. We also agreed on the need to work towards a temporary solution as soon as possible in 2026,” said Stephanie Lose, Danish minister for economic affairs.

ALCHEMPro News Desk (KD)