What: The EU will abolish the €150 customs duty exemption for low-value imports, introducing new duties and handling fees to create a more level playing field for retailers.

Why it is important: The new rules will significantly impact retail supply chains, consumer pricing, and operational models for both EU and international sellers.

The European Union is set to eliminate the €150 customs duty exemption for low-value imports, a move that will fundamentally alter the landscape of cross-border e-commerce. This decision comes in response to mounting pressure from member states and local retailers who have struggled to compete with the flood of low-cost imports, particularly from China, which accounted for over 90% of such parcels in 2024. The exemption’s removal will be phased in, starting with a temporary framework in 2026 and culminating in the full implementation of a digital Customs Data Hub by 2028. As duties and handling fees are introduced, consumers will face higher prices, and both large platforms and small sellers will need to adapt to more complex compliance requirements. The shift is expected to narrow the price gap between EU-based and non-EU sellers, prompting changes in logistics strategies and potentially reducing the dominance of direct-to-consumer imports. This regulatory overhaul signals a turning point in global trade policy, emphasising oversight, safety, and fair competition in the evolving retail environment.

IADS Notes: In May 2025, Inside Retail reported the EU’s introduction of a €2 handling fee for low-value parcels and the planned abolition of the €150 duty exemption, highlighting strong support from European retailers and the alignment with US policy changes. The August 2025 GDI article explored how the surge of Chinese e-commerce platforms and new customs fees are transforming local retail competition and supply chains. Journal du Net in April 2025 examined France’s regulatory response to the influx of Asian parcels and the European Commission’s proposal to remove the exemption. The October 2025 Ecommerce Europe report documented the sector’s 7% turnover growth and its adaptation to new compliance demands, while Inside Retail in April 2025 analysed the global supply chain restructuring triggered by the end of de minimis exemptions in both the US and EU.

EU moves to end €150 customs duty exemption for low-value imports