The EU Member States introduce a €3 customs duty per item on e-commerce parcels valued below €150, effective from July 2026.

This policy shift marks a significant change in how the EU handles low-value imports, primarily targeting platforms like Temu, Shein, and AliExpress that have flooded the market with inexpensive goods. Previously, parcels under €150 enjoyed duty-free entry, leading to an explosion in non-EU imports—over 5 billion such parcels arrived in 2024 alone. The new flat €3 fee per item simplifies customs processing while generating revenue and discouraging ultra-cheap shipments that often evade proper scrutiny.

Policy Background

EU policymakers have long grappled with the de minimis threshold, a rule allowing low-value goods to bypass duties and VAT collection. This loophole, intended for minor personal imports, exploded with e-commerce growth, creating unfair competition for European businesses burdened by higher costs. Member States unanimously approved the change, aligning with broader efforts to reinforce customs controls amid rising concerns over product safety, counterfeits, and environmental impacts from mass shipping.

The announcement reflects mounting pressure from EU retailers and manufacturers who argue that Chinese platforms undercut local markets with subsidized, low-quality products. Statistics show non-EU low-value imports surged 25% year-over-year, overwhelming customs resources and contributing to job losses in textiles and consumer goods sectors. By imposing the €3 duty, the EU aims to level the playing field without fully eliminating access to affordable imports.

Key Details of the €3 Duty

The duty applies strictly to parcels valued below €150, charged at a flat €3 per import declaration line regardless of origin or contents. Implementation starts in July 2026, giving businesses time to adjust supply chains and platforms to update systems. Importantly, this complements the upcoming EU Customs Data Hub rollout, which will digitize declarations for better tracking.

Exemptions remain for genuine gifts or personal effects, but commercial shipments must comply. Platforms face new reporting obligations, potentially passing costs to consumers via higher prices. For context, a €10 Temu gadget could see a 30% effective increase, nudging shoppers toward EU alternatives.

Implications for E-Commerce Businesses

Sellers on platforms like Shein will need to recalibrate pricing strategies, as the duty erodes their low-price advantage. Larger retailers may absorb some costs to retain customers, but small EU-based operations stand to benefit from reduced dumping. Logistics providers anticipate a drop in parcel volumes, easing congestion at key ports like Rotterdam and Antwerp.

Duty drawback schemes could gain traction, allowing exporters to reclaim duties on re-imported goods, though this adds administrative burden. For B2C sellers, transparent communication about price hikes will be crucial to maintain trust. Early adopters of EU warehousing might sidestep issues entirely.

Impact on Consumers and VAT

Shoppers accustomed to €1-€5 bargains face sticker shock, with total costs rising 20-50% on small orders. However, proponents argue this promotes sustainable consumption, reducing carbon footprints from frequent small shipments. VAT on low-value imports persists, now easier to enforce alongside the duty.

In the UK, post-Brexit rules mirror this trend with similar thresholds, potentially harmonizing cross-Channel trade. US comparisons show higher duties already in place, suggesting the EU move aligns with global norms. Consumers may shift to domestic platforms like Zalando or Amazon EU for faster, duty-free delivery.

Broader EU Customs Reforms

This duty forms part of the EU’s ongoing customs reform, including AI-driven risk assessments and the €2 billion Customs Data Hub. Recent reports highlight counterfeits in low-value parcels, justifying stricter controls—China-origin goods dominate seizures at 65%.

Experts predict revenue gains of €1-2 billion annually, funding further digitalization. Challenges include enforcement in peak seasons and appeals from affected platforms. Overall, the policy signals a tougher stance on e-commerce globalization.

Expert Commentary from TDR

At TDR, we view this as a win for compliant traders. The €3 duty closes a glaring loophole exploited by non-EU giants, restoring competitiveness to European SMEs. Businesses should audit supply chains now, exploring duty-free returns optimization and localized fulfillment.

• Immediate Action Steps:
  • Review parcel values and consolidate shipments to minimize per-item fees.
  • Integrate with EU’s new ICS2 system for pre-arrival declarations.
  • Consider VAT registration in low-tax EU states for B2C sales.
  • Plan for duty mitigation strategies like duty refund, optimised product classification or use of bonded warehouse.
• Long-Term Strategies:
  • Consider manufacturing in EU for duty avoidance.
  • Leverage AI tools for dynamic pricing post-duty.
  • Monitor US-EU trade talks, as reciprocal rules could emerge.

Challenges and Criticisms

Critics, including consumer groups, decry higher prices amid inflation, estimating an extra €500 million annual hit to EU households. Platforms argue it stifles innovation and access to budget fashion/tech. Enforcement gaps persist, with 10-15% of parcels still slipping through undeclared.

Environmentally, fewer parcels mean less air freight pollution, aligning with Green Deal goals. Politically, unanimous Member State support underscores consensus on protecting the single market. Future tweaks may include tiered duties or origin-based exemptions.

Global Context and Comparisons

China, source of 65% of seized counterfeits, faces indirect pressure to improve standards. India’s similar issues rank it second in EU IP concerns, hinting at targeted diplomacy. The US ended its de minimis for China in 2025, collecting $1.5B extra duties.

ASEAN nations via ARISE+ programs receive EU aid for better IP enforcement, potentially reducing low-value floods. For UK firms post-Brexit, alignment offers opportunities in joint platforms. Globally, this trends toward closing e-commerce loopholes.

Preparing for Compliance

E-commerce operators must train on new rules, budgeting 5-10% logistics cost hikes. Tools like TDR’s duty calculators help simulate impacts. Partnerships with compliant couriers like DHL ensure smooth transitions.

In summary—wait, no summaries—the EU’s €3 duty reshapes low-value imports, balancing trade fairness with consumer access. Track updates via official channels as details firm up. TDR stands ready to guide through this evolution.

Official Statement from the European Commission: EU introduces customs duties on low-value e-commerce packages

Are you exporting goods to the EU and willing to properly prepare for the new 2026 new Customs regulations? Set up a free discovery call with an expert from Trade Duty Refund to find out how duty drawback, returned goods release and trade consulting can help you mitigate raising costs!