The European Union is moving to close a significant loophole in its customs policy by eliminating the €150 ($174) customs exemption on online shopping imports, with the new rule set to take effect by 2026. The European Council announced on Thursday that all goods entering the EU will be subject to customs duties, regardless of their value. This change aims to level the playing field for European businesses, particularly in sectors like retail, which have been undercut by cheap imports.
We Ensure Customs Duties Are Paid from the First Euro
Danish Minister for Economic Affairs Stephanie Lose praised the agreement, emphasizing the need to create a fairer environment for European businesses. “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,” Lose said.
This move follows a growing concern over the influx of low-cost Chinese goods into the European market, particularly via e-commerce platforms like Shein, Temu, and AliExpress. In fact, the European Commission reported that in 2024, 91% of e-commerce shipments valued below €150 came from China, a trend that has raised significant concerns regarding competition and market fairness.
The new regulation, which will align the EU’s customs rules with value-added tax (VAT) regulations, is expected to curb the number of undervalued parcels entering the EU. Currently, up to 65% of small parcels entering the EU are reported to be undervalued to avoid customs duties. This has not only posed a challenge for European retailers but has also led to environmental concerns due to the practice of splitting shipments into multiple small parcels to bypass duties.
Customs Exemption Was Set to End in 2028; New Plan for 2026!
European Commissioner for Trade Maros Sefcovic had previously proposed to speed up the removal of the “de minimis” customs exemption, initially scheduled for 2028. Under the new plan, a simplified temporary customs fee would be introduced as early as 2026, two years earlier than initially planned. This change is expected to have a significant impact on Chinese online giants like Shein and Temu, which send products directly from Chinese factories to European customers at rock-bottom prices due to the customs exemption.
In support of this expedited action, European finance ministers have agreed to bring the new duties into effect as soon as 2026. The move has been widely welcomed across Europe. Retail associations in Germany and Sweden have expressed approval, noting that the removal of the exemption is a necessary step to ensure fair competition. Luca Sburlati, chairman of Italy’s fashion lobby Confindustria Moda, stressed that taxing parcels under €150 is “essential for the survival of our textile and clothing sector.”
4.6 Billion Packages Entered Last Year
The EU’s response is also driven by a sharp rise in the number of low-value parcels entering the bloc. Last year, the volume doubled to 4.6 billion parcels, with over 90% of them originating from China. The EU is under increasing pressure from domestic industries to act faster and curb this trend.
This urgency is compounded by moves in individual EU countries, such as Romania and Italy, to introduce national handling fees on low-value packages. Romania has proposed a 25 lei ($5.73) fee, while Italy is working on implementing a tax to protect its fashion industry. However, some retailers have warned that a patchwork of national fees could undermine the EU’s single market.
As EU lawmakers push for quick implementation, the new customs rules aim to reshape the landscape for e-commerce imports, ensuring that European businesses are better protected and that environmental concerns are addressed. While individual EU member states debate the introduction of additional fees, the overarching shift toward eliminating the €150 customs exemption marks a major step in creating a more balanced and competitive market for e-commerce in Europe.
