EU to abolish tax-free low-value parcels from non-EU countries starting in early 2026

EU finance ministers have agreed to abolish customs duty exemptions for parcels valued under €150 arriving from non-EU countries. Beginning in early 2026, all such parcels will undergo standard customs procedures, including the imposition of duties and handling fees. The decision was finalized at last Thursday’s ECOFIN meeting.

Greece strongly supports the measure. Minister of National Economy and Finance Kyriakos Pierrakakis described it as essential for fair competition, revenue protection, and ensuring product safety.

Why the Change?

The surge in low-value parcels from platforms such as Temu, Shein, Banggood, and Trendyol has exposed loopholes in the EU’s customs system. Many items are under-declared or split into smaller shipments to avoid the existing €150 threshold. The EU argues that these practices harm European retailers, distort competition, and reduce state revenues.

What Will Change for Consumers?

• All parcels from outside the EU will be assessed for customs duties, regardless of value.
• Consumers will still pay VAT at checkout (via IOSS), but additional customs duties and handling fees will be added upon entry.
• A handling fee of around €2 per parcel is expected, though the amount will be finalized politically.
• Final prices for “ultra-cheap” imported products will increase, potentially making them less attractive.
• There may be delays at customs unless member states upgrade systems and procedures.

What Will Change for Retailers and Platforms?

• Non-EU platforms (e.g., Temu, Shein, Trendyol) will lose a major competitive advantage.
• European e-shops will compete on more equal terms, as imported low-value goods will no longer avoid duties.
• Platforms may adjust pricing, shipping policies, or return procedures.
• Increased customs controls may raise operational costs for postal services, couriers, and platforms.

Implementation Timeline

Early 2026: Abolition of the low-value exemption with a simplified transitional system.

2028: A more advanced EU-wide electronic platform will be introduced to process all non-EU online purchases, accompanied by stricter rules.

Member states must submit detailed implementation proposals to the next ECOFIN meeting by December 12.

Official Reactions

European Commission President Ursula von der Leyen said all parcels will now pass through regular customs procedures, ensuring fair competition and better consumer protection.

The Hellenic Confederation of Commerce and Entrepreneurship (ESEE) welcomed the reform, stressing the need to eliminate the “de minimis” loophole.

EU officials highlighted that up to two-thirds of low-value parcels are currently undervalued, contributing to significant revenue losses.

Source: Paratiritis News