The European Union has officially agreed to a landmark customs reform, ending the long-standing €150 duty-free threshold for imports. EU finance ministers have accelerated the timeline for this change from 2028 to as early as 2026.
The move is a direct response to the surge of low-value parcels from e-commerce platforms like Shein and Temu, which critics argue has distorted competition and overwhelmed customs authorities.
Here is what the reform means for sellers, platforms, and consumers.
The End of the €150 Exemption
Currently, packages valued under €150 can enter the EU without incurring customs duties. This exemption, originally meant to simplify trade, has been widely exploited. The European Commission estimates that up to 65% of such parcels are deliberately undervalued to avoid taxes.
By removing this threshold, all goods imported into the EU will be subject to customs duty, regardless of their value. This levels the playing field for European retailers who are required to pay these duties.
E-commerce Platforms Become the "Deemed Importer"
A cornerstone of the reform is a new "deemed importer" model. This change shifts the responsibility for customs and VAT compliance directly onto the online marketplaces (e.g., Amazon, Temu, AliExpress) that facilitate the sale.
Under the new rules, these platforms will be responsible for:
- Collecting customs duties and VAT at the point of sale (i.e., when the customer checks out).
- Remitting these taxes to the EU authorities.
This ends the practice of consumers being hit with unexpected import fees upon delivery and makes platforms accountable for the goods sold on their sites.
Simplified Tariffs to Manage the Volume
To prevent customs authorities from being overwhelmed by the new volume of dutiable, low-value parcels, the EU is introducing a simplified tariff system.
Instead of the current complex system with thousands of duty categories, a new "bucket" system will be introduced for most e-commerce imports. This will group goods into a few categories with flat duty rates (e.g., 5%, 8%, 12%), making calculation and collection far simpler for the platforms.
Why the Accelerated Timeline?
The original reform package was scheduled for implementation in 2028. However, EU finance ministers have pushed for an accelerated timeline, now targeting early 2026.
This urgency is driven by the sheer volume of parcels. In 2024, an estimated 4.6 billion low-cost packages entered the EU, with over 90% originating from China. Dutch MEP Dirk Gotink noted that "We have already received more packages than in the whole of 2024, and Black Friday and Christmas are still to come."
The "Customs Data Hub"
The long-term vision of the reform, rolling out in stages through 2038, is the creation of a single "EU Customs Data Hub." This new IT platform will replace the 111+ separate customs systems currently used across the EU.
For businesses, this hub will eventually allow them to submit all customs information in one place, streamlining the process. For authorities, it provides a centralized data pool to better manage risk and target fraudulent shipments.
14 Nov, 2025
