EU Brings Forward Customs Reform; Low-Value E-Commerce Parcels to Be Subject to Taxation
The European Union is preparing to take a new step in response to the rapid increase in low-value e-commerce shipments arriving from third countries. As of July 2026, online purchases sent directly to consumers from outside the EU and valued below €150 will be subject to a fixed customs duty of €3 per item.
European Union finance ministers have agreed to impose a customs duty of €3 ($3.52) on low-value parcels entering the bloc, as part of measures targeting cheap Chinese-origin e-commerce imports from China-based online platforms such as Shein and Temu.
According to the regulation adopted by EU Member States, this represents a significant departure from the “de minimis” exemption applied to low-value parcels, which has so far allowed such shipments to be exempt from customs duties. EU institutions argue that this exemption has, over time, distorted competition and placed EU-based retailers at a disadvantage, as they are subject to stricter tax, labor, and regulatory obligations.
In a statement made on behalf of the 27 Member States, the EU Council said: “This temporary measure responds to the fact that such parcels currently enter the EU duty free, leading to unfair competition for EU sellers, health and safety risks for consumers, high levels of fraud, and environmental concerns.”
Taxation of Low-Value Parcels Was Planned to Enter Into Force in 2028
According to officials, the new duty is intended as a temporary solution ahead of a comprehensive customs reform for low-value parcels that was planned to enter into force in 2028. As part of this reform, the EU Customs Data Hub will be established to collect new customs data on all goods entering and leaving the Union within a single digital platform. This will enable customs authorities to monitor e-commerce flows more effectively, strengthen the fight against fraud, and increase product safety controls.
The rapid growth of cross-border e-commerce has also increased pressure on the EU to act earlier. While billions of low-value parcels enter Europe every year, this creates a significant administrative burden on customs authorities. At the same time, concerns are increasing regarding counterfeit products, environmental impacts, and consumer safety. EU institutions are of the view that the current system is inadequate in light of the scale and speed of digital trade.
The New Customs Duty Is Separate From the “Handling Fee”
It should also be noted that the €3 customs duty is separate from the EU-wide “handling fee” currently under discussion. While the customs duty aims to level competitive conditions, the handling fee is intended to compensate customs authorities for increasing inspection and processing costs. According to current proposals, this fee is expected to enter into force in the later months of 2026; however, its amount and exact implementation date will be finalized depending on negotiations between the European Parliament and the Council.
A New Customs Regime Will Be Implemented Once the EU Customs Data Hub Becomes Operational
Once the EU Customs Data Hub becomes fully operational, this temporary measure will be replaced by a permanent e-commerce customs regime. EU officials emphasize that, in the long term, this system will strengthen the customs union, protect European businesses and workers, and ensure that the growth of online trade does not come at the expense of fair competition and consumer safety.
For global e-commerce platforms and international sellers, this move is seen as a signal of a more stringent regulatory period in the European market, while for EU retailers it is considered an important step toward the long-demanded goal of “equal competitive conditions” in the digital marketplace.
Background of the New Customs Reform
At present, parcels valued below €150 that are sent directly from a third country to a consumer in the EU are exempt from customs duties. The European Commission proposed the removal of this exemption in May 2023 as part of the customs reform. The initial proposal envisaged the application of the measure from mid-2028. The Council adopted the removal of the exemption on 13 November 2025 and called for the measure to be applied earlier, in 2026.
In addition, in its communication on e-commerce in February 2025, the European Commission introduced the idea of a Union-level handling fee for goods imported directly to consumers. This fee was included in the customs reform proposal under the negotiating mandate adopted by the Council in June 2025. The handling fee is intended to compensate customs authorities for the increasing costs incurred in ensuring the release of those goods for free circulation.
According to the Council’s mandate, the handling fee is expected to enter into force in November 2026. The content of the fee and its exact date of entry into force are currently under discussion between the Council and the European Parliament within the framework of the ongoing customs reform proposal trilogue negotiations.
The Number of Low-Value E-Commerce Parcels Reached 4.6 Billion Last Year
Online platforms such as Shein, Temu, AliExpress, and Amazon Haul send clothing, accessories, and electronic products manufactured in factories in China directly to consumers at extremely low values. Due to the customs exemption, the number of low-value e-commerce parcels entering the Union doubled last year to 4.6 billion, with more than 90% of these parcels originating from China. Import volumes are expected to increase further this year.
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