European Union To Phase Out Duty-Free Treatment For Cheap Imports

The European Union is moving toward eliminating its long-standing de minimis rule, which currently lets low-value goods enter the EU without customs duties - a shift that could have major implications for international e-commerce.

Under the existing system, parcels worth less than €150 are exempt from import duties. The EU now intends to remove this threshold and the change will be fully implemented once the bloc deploys its new customs data platform, a rollout that could take up to three years.

In the meantime, Brussels is working on a temporary mechanism to ensure that duties are collected on small parcels well before the new system goes live. This interim approach could begin as early as next year, reflecting growing alarm over the widespread undervaluation of imported goods. Officials estimate that nearly two-thirds of low-value packages are intentionally misdeclared to avoid paying tax.

Current data shows that China overwhelmingly benefits from the exemption, accounting for roughly 91% of parcels shipped under the €150 threshold - a consequence of the rapid expansion of low-cost online marketplaces that dispatch goods directly to European consumers.

The EU’s decision follows similar developments in the United States, which ended its own $800 de minimis allowance earlier this year. The policy was initially removed for Chinese imports in May before being broadened to cover all foreign shipments by August.

The United Kingdom may be next to tighten its rules. Its current limit of £135 is under government review, and the chancellor may reduce or completely phase out the tax-free allowance in the upcoming budget.

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