The European Union has taken a significant step toward modernising its customs framework by confirming the removal of the €150 customs duty exemption threshold for low-value parcels. This change, originally tied to the launch of the EU Customs Data Hub in 2028, will now take effect much earlier, with a temporary duty collection mechanism planned for 2026.

This decision marks the first major achievement under the EU’s 2023 Customs Reform, which aims to respond to the explosive growth of low-value e-commerce imports entering the EU directly from non-EU sellers.

Why the €150 Threshold Is Being Removed

Today, parcels under €150 are exempt from customs duties, though still subject to VAT and customs declarations. However, the EU considers this exemption outdated and distortive:

• The EU imported 4.6 billion parcels in 2024.

• Up to 65% of small parcels are undervalued to avoid duties.

• 91% of low-value shipments originate from China.

• Duty losses are estimated at over $1.2 billion annually.

EU officials argue that the threshold creates unfair competition for European retailers and traditional bulk importers, who must pay duties and comply with stricter rules. It also raises concerns around product safety, counterfeit goods and environmental impact.

Implications for Logistics Providers

The end of the €150 threshold will introduce new compliance and operational demands:

• Every parcel, regardless of value, will be subject to customs duty.

• More detailed product data, HS codes and valuation information will be required at scale.

• Duty collection models may differ depending on implementation: at checkout or at customs entry.

• Logistics flows may shift as businesses re-evaluate routing, processing costs and national fee structures.

These changes highlight the need for accurate data and automated customs processes, especially for high-volume e-commerce operators moving millions of parcels per year.

As the EU moves toward a unified, data-driven customs system, x7trade helps ensure businesses remain accurate and compliant.

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Sources:
1. European Comission: https://taxation-customs.ec.europa.eu/news/e-commerce-150-eur-customs-duty-exemption-threshold-be-removed-2026-2025-11-13_en
2. Yahoo Finance: https://finance.yahoo.com/news/european-union-moves-revoke-duty-203351512.html?guccounter=1