The 27 EU countries agreed this Thursday to scrap rules that allow goods worth less than 150 euros to enter the EU without paying customs duties. The changes will apply tariffs to all goods entering the EU and align the system with existing rules for value-added tax on imported goods. The measures specifically focus on the arrival of small packages from Chinese companies such as Temu and Shein.
The measure was originally planned to take effect in 2028, but the urgency of its implementation means that a simple, interim solution will be considered: applying tariffs to the goods in 2026.
The European Union claims that the large quantities of Chinese products “not only raise ‘environmental concerns’ regarding transport emissions,” but also pose a problem of unfair competition for EU sellers.
The European Commission has published a report stating that 65% of small parcels arriving in the EU in 2024 were offered for less than 150 euros “to avoid import duties”. We’re talking close to 4.6 billion shipments of low-priced items. This means that 12 million parcels with a value not exceeding 150 euros are imported without customs duty every day. 91% of e-commerce shipments under 150 euros come from China.
“We have reached an agreement to eliminate the 150 euro threshold at customs, so that customs duties will be paid from the first euro, which will limit the influx of low-priced products and make European companies more competitive,” explained Danish Economy Minister Stefanie Ross.
The new rules will start to apply once the EU Customs Data Center is operational, which is currently expected to be in 2028. The center is currently under negotiation with the Council and the European Parliament as part of a broader overhaul of the EU customs framework. Its ability to calculate and notify customs duties on an item-by-item basis will enable customs authorities across the EU to apply a complete customs regime to small parcels entering the EU.
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