Online shopping. International E-commerce
getty
The European Union has agreed to end one of the most important perks in online shopping: the ability to receive low-value imports without paying customs duties. The decision marks a major shift in how the EU handles cross-border e-commerce, and it follows rising pressure from member states, local retailers, and customs authorities who say the system no longer works. Now the EU is preparing for a model that brings tighter oversight and a more level playing field.
Why the EU Is Ending the €150 Threshold
Currently parcels worth less than €150 arrive in the EU without customs duties. VAT still applies from the first euro, but customs officers do not need to calculate or collect duties for these low-value shipments. The intention is simple: reduce paperwork and make border checks easier.
However, the rule became a gateway for huge volumes of cheap imports. In 2024, about 4.6 billion low-value parcels entered the EU, equalling to 12 million parcels per day. This is twice as many as in 2023 and three times as many as in 2022. More than 90% of these packages came from China. The European Commission estimates that up to 65% of low-value shipments were undervalued or split into smaller parcels to stay under the limit. This created an uneven playing field, cost the EU an estimated €1 billion a year in lost revenue, and left European retailers competing with prices they could not match. On November 13, 2025, EU finance ministers agreed it was time to remove the exemption.
How the New System Will Roll Out
The EU will not switch to the new model overnight. Instead, the transition will follow two phases. In 2026, the bloc will introduce a temporary framework to start collecting duties on low-value imports. Officials still need to work out the specifics, but the intention is to create a simple way to calculate duties and ensure basic compliance while broader systems are built. This interim solution may be discussed further at the next ECOFIN meeting in December 2025.
The full shift will begin in 2028, when the EU launches its new Customs Data Hub, a digital platform that will verify import data in real time. Once the Data Hub begins operations in 2028, the €150 threshold will be removed entirely from EU law.
The EU is also considering the introduction of a new handling fee on e-commerce parcels. The Commission has suggested a fee of around €2 per package, with a lower rate for certified traders or goods moving through EU warehouses. Several countries—including France, Romania, and the Netherlands—are already discussing their own national versions. The idea is to help customs authorities recover the cost of processing the massive volume of daily parcels and to tighten checks on product safety.
Why the US Eliminated Its $800 Duty Exemption and What Followed
Europe is not alone in rethinking low-value imports. The United States made an even bigger move in 2025 when it eliminated its $800 de minimis threshold for all countries. The decision followed a partial suspension earlier that year that targeted China and Hong Kong. The $800 exemption had been in place since 2016 and had become central to cross-border e-commerce, but concerns about revenue loss, safety risks, and unfair competition pushed Washington to act. In 2024, about 1.4 billion parcels entered the US under the customs duty exemption.
Once the exemption ended, prices rose on many imports that had previously avoided duties. Small exporters abroad also faced new hurdles, since every package going to the US now triggered duties and extra paperwork. The shift created a sharp jump in operational demands for importers, and several foreign postal services paused shipments to the US because they could not meet the new requirements. US Customs and Border Protection (CBP) also felt the pressure. Millions of parcels that once moved through with minimal checks now needed full processing. By October 21, 2025, CBP had handled nearly 24 million packages that would have been waved through under the old system.
While the change created real disruptions and higher costs, it also solved problems that had grown as e-commerce expanded. Ending the duty exemption closed a loophole that let some sellers avoid safety checks. It gave customs authorities a clearer view of what was entering the country, which made it easier to catch unsafe goods. It cut down on shipments that were undervalued or misdeclared. And it helped level the field for domestic businesses that said they were competing with imports that didn’t carry the same compliance costs.
How the EU’s Decision Will Affect Consumers and Businesses
EU retailers, who have long argued that the current system is unfair, may benefit from the change. The new rules reduce the price advantage enjoyed by foreign sellers and bring everyone closer to the same set of obligations.
The end of the €150 exemption will raise prices for many shoppers. Customs duties and handling fees will add to the cost of ordering goods directly from outside the EU. Compliance requirements across the supply chain will increase, and these costs will flow through to the final price.
Large e-commerce platforms may absorb some of the shock by shifting their logistics. Many could move towards bulk imports into EU warehouses rather than shipping one parcel at a time. This change will narrow the price gap between EU-based and non-EU sellers, reducing the advantage that direct-to-consumer shipping has created.
Small cross-border sellers stand to face the biggest challenges. Many rely on low-cost shipping and simple customs rules to reach EU buyers. The need for more detailed customs declarations, more frequent checks, and new duties could make the EU market too expensive for some. Others may shift to using large platforms, though those platforms will also face higher operational costs.
A Turning Point for Global E-Commerce
The decision to end the €150 exemption represents more than a technical change in customs rules. It signals a broader shift in global trade policy. Governments are rethinking the balance between fast, low-cost imports and the need for oversight, safety, and fair competition. The United States has already taken this step. Other countries may soon follow.
The transition will not be simple. Consumers will pay more. Businesses will need to adjust supply chains and rethink pricing. Customs authorities will face years of work to build the systems needed to support the new model. But many policymakers believe the old framework has reached its limits.
Europe’s move suggests that the era of lightly regulated, low-value imports is coming to an end. The next phase of e-commerce will be shaped by clearer rules, more responsibility for online platforms, and a stronger focus on fairness across global markets.
The opinions expressed in this article are those of the author and do not necessarily reflect the views of any organizations with which the author is affiliated.