EU customs duty rules changed on 1 July 2026, ending the duty-free treatment of low-value parcels worth up to €150 and targeting the rapid growth of cheap e-commerce imports from outside the European Union, especially from China.
The measure introduces a temporary €3 customs duty on low-value consignments bought online from non-EU sellers. It applies per item category in a parcel, not simply per package. A shipment containing a T-shirt and a watch, for example, can face a €6 duty, while several identical T-shirts are treated as one item category.
The change is part of a wider EU effort to modernise customs controls, strengthen product safety checks and reduce what European institutions describe as unfair competition between EU retailers and non-EU platforms.
Why the EU customs duty is changing
Until 30 June 2026, goods imported into the EU in parcels worth up to €150 were exempt from customs duties. The rule was originally designed to avoid disproportionate administrative costs for customs authorities and businesses.
The European Commission now argues that the exemption no longer reflects the scale of online commerce. Digital customs data are available for imported goods, while the volume of direct-to-consumer parcels has increased sharply.
According to EU figures, almost 5.9 billion low-value items were shipped directly from third countries to consumers in the EU in 2025. Many entered without paying customs duties. EU institutions say this created a structural advantage for business models based on large volumes of very cheap shipments.
The new duty is temporary. It will remain in place until 1 July 2028, when the EU expects a broader customs reform and the EU Customs Data Hub for e-commerce to become operational. After that, normal customs duties will apply according to the type of product.
Cheap e-commerce imports face tighter controls
The reform affects online purchases from non-EU suppliers, including goods sold through major e-commerce platforms. Although the measure is formally non-discriminatory and applies regardless of the country of origin, the political debate has focused heavily on cheap imports linked to platforms such as Temu, Shein and AliExpress.
EU officials and retailers have argued that the previous system made it difficult to control millions of small parcels entering the Single Market. The concern is not only price competition, but also consumer safety, environmental standards and product compliance.
The Commission said targeted inspections across the EU in 2025 found high levels of non-compliance in several categories, including cosmetics, personal protective equipment, food supplements, toys and electronics. Problems included missing labels, forbidden ingredients and absent safety documentation.
From 1 November 2026, product identifiers will become mandatory for affected goods. The aim is to improve traceability and help customs authorities detect unsafe or non-compliant products before they reach consumers.
A €3 charge, but not always paid directly by consumers
The EU has stressed that the €3 customs duty is imposed on the declarant of the good, usually the seller, importer or their representative. In practice, part of the cost may still be passed on to consumers through higher prices or clearer import charges at checkout.
The duty applies per item category according to tariff classification. This detail matters for consumers and platforms. A parcel with several different product types can face several €3 charges, while multiple units of the same type can be treated as one item category.
The measure is separate from a proposed EU handling fee, which is still under discussion. The handling fee would be designed to cover customs processing costs, while the €3 duty replaces the previous exemption for low-value goods.
European Commissioner for Trade and Economic Security Maroš Šefčovič said the reform was intended to close loopholes in the customs system.
“This reform ensures fairness for all businesses operating within the EU market while keeping customs procedures simple for consumers,” he said.
What it means for the Single Market
For EU institutions, the measure is a first step in adapting customs policy to an e-commerce market that has changed faster than the rules governing it. The previous threshold helped customs authorities avoid small-scale paperwork, but it also became a central part of the business model of ultra-low-cost cross-border retail.
Retail groups have welcomed the principle of ending the exemption, arguing that European shops must comply with stricter rules on safety, labelling, waste, VAT and environmental standards. Their argument is that EU companies cannot compete fairly with sellers that avoid equivalent obligations.
The impact on consumer behaviour is less certain. A €3 duty may not be enough to discourage purchases when prices remain very low. However, it could reduce impulse buying, increase transparency at checkout and push platforms to rely more on EU-based warehouses or bulk imports.
The reform also signals a broader shift in EU trade policy. Customs rules are increasingly being used not only to collect revenue, but also to protect the integrity of the Single Market, enforce product standards and respond to the pressure created by global platform commerce.
The next test will be implementation. Customs authorities across member states will need to apply the new system consistently, while platforms and importers will have to adapt their pricing, logistics and compliance systems. By 2028, the EU wants to move from an emergency flat duty to a more permanent customs framework for online commerce.
