The decision reflects growing concern among policymakers that existing customs rules have not kept pace with the rapid expansion of global e-commerce. According to the European Commission, 4.6 billion small parcels entered the EU in 2024, and roughly 91% of them originated from China.
With cross-border online retail continuing to surge, EU institutions say the new customs framework will help restore fair competition, improve oversight of imports and strengthen EU budget revenues.
Why the EU Is Reforming Customs Rules for Small Parcels
For years, goods shipped directly to EU consumers from outside the Union could benefit from a customs duty exemption for parcels valued below €150.
While originally designed to simplify low-value imports, the rule has increasingly been criticised by EU retailers and policymakers. Many argue that the exemption allowed overseas online sellers to offer cheaper products than European businesses that must comply with full import duties and regulatory standards.
At the same time, the explosion of online shopping has created significant operational challenges for national customs authorities. The volume of small packages entering the EU has grown dramatically, placing pressure on fragmented customs systems across Member States.
The new reforms aim to address these concerns by modernising how low-value imports are handled.
What Changes Under the EU Customs Reform?
The €150 Duty-Free Threshold Will Be Abolished
One of the most significant elements of the reform is the removal of the €150 customs duty exemption for small parcels.
Once the EU’s new Customs Data Hub becomes fully operational — expected in 2028 — standard customs tariffs will apply to all goods entering the European Union, regardless of their value.
This change will ensure that low-value shipments are treated more consistently with larger imports.
A Temporary €3 Customs Duty From 2026
Because the new customs IT infrastructure will take several years to implement, the EU will introduce an interim flat customs duty system.
Starting 1 July 2026, small parcels sent directly to EU consumers will be subject to a €3 duty per product category.
This interim system will remain in place until 1 July 2028, when the EU Customs Data Hub is expected to replace it.
The duty will apply per tariff classification, meaning parcels containing goods from multiple product categories may face multiple charges.
Example
If a parcel contains:
- one silk blouse
- two wool blouses
Because silk and wool fall under different tariff classifications, the shipment contains two product categories.
The customs duty would therefore be calculated as:
- €3 for the silk garment category
- €3 for the wool garment category
Total customs duty: €6
The interim mechanism may be extended beyond 2028 if necessary.
The Role of the EU Customs Data Hub
A central element of the broader reform is the creation of the EU Customs Data Hub, a digital platform designed to streamline customs procedures across the Union.
The new system will centralise customs data and enable authorities to monitor imports more effectively. It will also support the establishment of a new EU customs authority tasked with coordinating enforcement and risk management.
By replacing fragmented national systems with a unified digital platform, EU policymakers hope to improve both efficiency and security in cross-border trade.
How the New Rules Affect E-Commerce Businesses
For companies selling goods into the EU, the reform will introduce several operational changes.
Pricing Strategies May Need Adjustment
The removal of the duty-free threshold means that even low-value shipments will face customs duties. Businesses selling directly to EU consumers may need to reassess pricing structures to account for additional costs.
Greater Attention to Tariff Classification
Because the interim duty applies per tariff sub-heading, accurate classification of products will become increasingly important.
Incorrect classification could result in unexpected customs charges or delays.
Additional Compliance Requirements
As the EU strengthens customs oversight, sellers shipping goods to European customers may face more detailed documentation and reporting obligations.
What EU Consumers Should Expect
For European consumers who frequently order products from outside the EU, the changes could slightly alter the cost and delivery process of online purchases.
Small parcels that previously entered the EU duty-free may now incur modest customs charges beginning in July 2026.
Stricter customs checks could also lead to longer processing times for certain shipments, particularly during the transition period before the new digital customs system becomes fully operational.
Timeline of the EU Small Parcel Customs Reform
- 1 July 2026: Introduction of €3 interim customs duty per product category for small parcels
- 2026–2028: Temporary duty system remains in place
- 2028: EU Customs Data Hub expected to become operational
- From 2028 onward: Standard EU customs tariffs apply to all imported goods regardless of value
Negotiations between the Council of the European Union and the European Parliament on the broader customs reform package are still ongoing.
What the Reform Means for the Future of EU E-Commerce
The removal of the €150 duty-free exemption represents one of the most significant changes to EU customs rules in recent years.
By introducing duties on low-value imports and developing a centralised digital customs infrastructure, the EU aims to adapt its trade framework to the realities of the modern digital economy.
For policymakers, the objective is clear: fairer competition for EU businesses, stronger customs oversight and improved public revenues.
For companies engaged in cross-border e-commerce, the reforms signal a new era of closer regulatory scrutiny and evolving import rules.
As global online trade continues to grow, the EU’s customs overhaul demonstrates how governments are adapting their systems to manage the challenges of digital commerce.
FAQ
The exemption will effectively end with the introduction of a €3 interim customs duty on 1 July 2026, followed by the application of standard tariffs once the EU Customs Data Hub becomes operational in 2028.
From July 2026, an interim €3 duty per product category will apply to small parcels sent directly to EU consumers.
The reform aims to ensure fair competition between EU and non-EU sellers, improve customs monitoring and generate additional revenues for EU and national budgets.