In recent years, the European Union has faced growing challenges from the sharp increase in low-value parcels, largely driven by cross-border e-commerce. Millions of small shipments entering the EU each day have placed significant pressure on customs authorities and existing regulatory frameworks.
One major issue has been lost customs and VAT revenue, as low-value imports benefited from duty exemptions and, in some cases, undervaluation practices. This has also led to unfair competition for EU-based businesses, which must comply with full tax and regulatory requirements while competing with lower-cost imports from outside the EU.
The surge in parcel volumes has further strained customs enforcement capacity, making it more difficult to conduct risk assessments, inspections, and product compliance checks at scale. As a result, concerns have grown over the entry of non-compliant or unsafe products that may not meet EU health, safety, or environmental standards.
In addition, fragmented handling of low-value imports across Member States previously created operational inefficiencies and regulatory inconsistencies within the single market.
In December 2025, the European Union has agreed to introduce a fixed €3 customs duty on low-value parcels entering the bloc, effective 1 July 2026. Under the new rules, goods imported in small consignments with a value below €150 will no longer be exempt from customs duty, ending a long-standing exemption that applied to most e-commerce imports.
The duty is designed as a temporary transitional measure while broader EU customs reform, including the launch of an EU customs data hub, is finalised. It will apply primarily to goods entering the EU through distance sales channels and sold by non-EU sellers registered in the Import One-Stop Shop (IOSS) for VAT purposes, which accounts for around 93 % of cross-border e-commerce flows.
The fee is levied per item type based on its tariff heading rather than per parcel, meaning consignments with multiple distinct products will incur multiple duties. Policymakers say the change aims to level the playing field for EU sellers, reduce unfair competition, address valuation fraud, and improve customs oversight of small parcel imports.
This step is part of wider efforts to modernise the EU customs union and better align customs duty treatment with how value-added tax (VAT) already applies to such imports.
Please read the following official press release from the Council of the EU:
Customs: Council agrees to levy customs duty on small parcels as of 1 July 2026