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The Council of the European Union has agreed to abolish the long-standing €150 customs duty exemption for low-value e-commerce imports. The measure, endorsed by finance ministers, will start taking effect in 2026 and aims to address the surge of small parcels entering the EU from non-EU countries, many of which are undervalued or split to avoid duties. According to the Commission, over 4.6 billion parcels entered the EU in 2024, with the vast majority valued below €150 and originating mainly from China.

The Commission has welcomed the Council’s decision, stressing that the current system creates unfair competition for EU-based businesses, who must comply with full customs and VAT rules while some non-EU sellers benefit from artificially low declared values. Commissioner Maroš Šefčovič described the reform as a necessary step to ensure fairness, improve revenue collection and strengthen oversight of fast-growing online trade. The removal of the exemption is part of the broader EU Customs Reform and ties into the future EU Customs Data Hub, expected to be operational around 2028.

To bridge the period until the new digital systems go live, a transitional mechanism will be introduced from 2026 to allow a simplified way of calculating and collecting duties on low-value parcels. This is intended to help customs authorities and businesses adapt gradually.

Early reactions from the trade and e-commerce sector highlight the need for clarity and realistic preparation time, also noting, that the success of the reform will depend on efficient digital processes, consistent application across Member States and clear guidance for platforms, postal operators and SMEs selling to EU consumers. For logistics service providers and customs intermediaries, the key message is preparation: classification, data quality and cost calculations for low-value imports will all change.