The customs exemption for parcels valued under €150 will be abolished across the European Union starting in early 2026, with all packages dispatched from third countries now subject to normal checks, duties, and stipulated handling fees. The decision was approved on Thursday by the EU Council of Finance Ministers (ECOFIN) as part of a wider customs rules reform.
The “pros” include reducing unfair competition from foreign businesses, increasing public revenue, preventing the sending of substandard products that fail to comply with European standards, and environmental benefits from discouraging the production and overconsumption of items and materials of dubious quality and origin.
The “cons” encompass the increase in final prices on “ultra-cheap” products from third countries due to duties and handling fees flooding Europe, the possible burden on lower incomes who “chase” low prices, the risk of delays and bureaucracy in customs processing, new costs and procedures for couriers/postal services/customs, and the need for careful and balanced planning in the imposition of a “handling fee” per package (at least €1.5-€2 and above, according to current proposals).
What ECOFIN Decided
EU Finance Ministers agreed last Thursday to abolish the customs duty exemption for low-value parcels, accelerating the implementation timetable (from 2028 to early 2026). This will provide a transitional “simple” solution so that all parcels enter customs and duty procedures. Stricter measures will be adopted two years later, from 2028, with a new revision of the Directive, based on a new platform where every purchase from third-country e-shops imported into the EU will be cleared electronically.
Member states will bring specific implementation proposals for approval to the next ECOFIN in less than a month (by 12/12), aiming for a new architecture for the import of small parcels from China and third countries. This will operate “as soon as possible” within 2026, yet in a way that does not cause additional delays and problems at customs due to the volume of small parcels that will accumulate, which currently pass through “duty-free.”
What Changes for the Consumer
Every parcel from a third country will be assessed for duties regardless of value (beyond VAT, which already applies and is imposed at the time of purchase from platforms via IOSS/checkout). Consequently, final prices will become higher and less attractive than they are today on “cheap” packages.
Apart from duties, the plan also stipulates a separate “handling fee” per small parcel (approximately €2, according to the prevailing proposal so far), as a low nominal value charge which will come into effect possibly after mid-2026—though the final amount and plan remain to be politically confirmed.
How Temu, Shein, Trendyol Are Affected
The sales system applied by corporate platforms such as Temu, Shein, Bangood, Trendyol, etc. (as well as similar purchases via e-Bay) is targeted, using excessively low prices (“ultra-low price”) and free worldwide shipping (“free shipping”) as “lures.”
For years, this model relied largely on the EU Customs’ low exemption threshold for purchases up to €150 (“de minimis”). Furthermore, this threshold allowed for undervaluations by foreign companies or even the splitting of orders by buyers to avoid the set limit.
From the coming months, however, these purchases will be burdened by duties and fees, limiting the final price advantage over European retail sellers or, potentially, changing the policies of free shipping and returns of these products by foreign companies.
However, the transition to a full customs control regime may bring delays and problems at Customs, something that requires adaptation and timely upgrading of customs IT systems, and may increase the platforms’ operating costs.
What Changes for E-Shops
For European e-shops, the rules of the game change and become more equal with their competitors from the East, as directly imported cheap packages will no longer escape duties, reducing the pricing difference with European platforms that pay full duties and comply with strict quality and manufacturing standards.
Why the Regime Is Changing
The explosive increase in small parcels from third-country platforms (such as Temu and Shein) has caused losses to member states, not only because European businesses are affected, but because it is combined with undervaluations and circumventions, leading to revenue losses and competition distortion at the expense of state revenue and European retail and industry.
The EU seeks equal terms, better compliance and product safety control, and discouraging “fast fashion” practices that inflate the environmental footprint and bypass European rules.
European Commission President Ursula von der Leyen stressed that «from now on, all parcels will go through normal customs procedures» ensuring «fair competition and better consumer protection,» with a commitment to support member states with immediate transitional measures.
EU officials point out that up to two-thirds of small parcels are declared undervalued, something that will only be tackled by abolishing the exemption and stricter enforcement.
(information from protothema.gr)
