European Union finance ministers have reached a groundbreaking agreement to eliminate the customs-duty exemption on parcels valued under €150 imported from non-EU countries. This decision marks a significant shift in EU trade policy, targeting the massive influx of low-value goods primarily from Chinese e-commerce platforms. The change will fundamentally transform how millions of European consumers purchase products online, affecting everything from clothing to electronics shipped directly to their doorsteps.
Political agreement hastens the implementation schedule for customs reform
The initial plan by the European Commission involved the abolition of this waiver by mid-2028 in its customs union reforms. However, this plan has faced opposition from European countries, and Economy Commissioner Valdis Dombrovskis announced that this would happen “as soon as possible in 2026.” This is because there is a sense of urgency about e-commerce matters that European brick-and-mortar shops are facing.
This was announced by the Danish Economy Minister, Stephanie Lose, after a Council of Ministers meeting. The European Parliament has already approved this abolition within its July 2025 resolution on product safety and regulatory compliance within e-commerce. The European institutions have achieved a political agreement on how to handle unfair competition on online platforms that are not operating in the EU market.
The key implementation points involve several crucial modifications:
- Removal of €150 customs duty threshold on all parcels
- Introduction of the system to calculate temporary duty until mid-2028
- Implementing the EU Custom Data Hub long-term processing system
- Around €2 handling charge added to each package sent via outside EU marketplaces
Chinese platforms lead European parcel shipment volume
The extent of this problem can better be comprehended by taking into account that there are 4.6 billion low-value parcels that were imported within the EU during 2024, and out of these parcels, 91% are imported from China. The implications are being directly faced by retail conglomerates within Belgium because more than one billion Chinese e-commerce parcels were imported into Belgium last year through Liege Airport, which is one of Europe’s largest cargo air hubs.
Popular Chinese online shopping platforms such as Shein and Temu have managed to corner a considerable market share within Europe, though they have been accused of carrying out illegal business processes. It has been revealed that 70% of goods sold on such platforms are harmful to European consumers’ safety, though there have been complaints regarding deceptive marketing and sustainability claims.
Level playing field restoration supports the traditional retail sector
The problem with this is that there has long been a call within the retail sector in Belgium for a regulatory policy concerning what is perceived to be “unfair” Chinese competition, which exploits the current threshold system. The current system creates an uneven playing field within import e-commerce and retail via bulk imports between direct imports and European enterprises, which pay customs duties on their own goods but face no duties on imports.
The objective here is to make sure there is level ground when it comes to competition between these e-commerce platforms and normal European shops that import their commodities on a huge scale, paying standard fees to customs. This is the very first notable achievement within the 2023 Customs Reform proposal. This is because there is a huge amount of low-value commodities being shipped to European consumers.
The scrapping of the €150 customs duty exemption by the European Union is a landmark within European trade policy, and this is a giant step towards meeting the challenge posed by the increased level of e-commerce. This is because this measure is geared towards promoting fair competition among retail shops and e-commerce platforms, while at the same time making sure that there is a correct levy of customs duties. The faster timetable within the 2026 timeframe shows that the EU is concerned about consumers within their digital environment.
