The European Union cancelled a customs duty exemption for e-commerce packages and introduced a new customs duty on parcels from outside the bloc.
The move has been made to counter the flooding of cheap goods coming from third countries. Before, any parcels below €150 was exempt from customs duty. A recent surge in e-commerce orders pushed the situation to the extreme, and the Commission is now adding a new €3 customs duty on parcels below €150. Scrapping the previous system “simply brings our customs system up to speed with how trade works today – resulting in fairer competition, stronger enforcement, better consumer protection,” according to Maroš Šefčovič, Commissioner for Trade and Economic Security.
The Commission said the exemption was based on a previous reality when online purchases were less frequent. The current surge in orders has exposed European businesses. It risked damaging retailers and customers.
A separate EU investigation found that over 60% of low-value goods entering the EU don’t comply with EU regulations, a blatant problem for EU businesses that must comply and fend off unfair competition. “Platforms and sellers profiting from European consumers must play by the same rules as European businesses,” said Šefčovič.
The new customs duty will be a temporary measure to help EU businesses. From July 2028, this customs duty will be replaced once the EU Customs Data Hub is operational, and normal customs duties will apply in accordance with EU rules.
