EU to Impose Customs Duties on All Imported Goods, Including Low-Cost Items
The European Union is set to introduce new customs regulations that will require duties to be paid on all imported goods, eliminating the existing exemption for low-value items. This decision, supported by the majority of EU finance ministers during a meeting in Brussels, aims to address the increasing volume of parcels entering the EU, particularly from online platforms such as Temu, Shein, and AliExpress.
Currently, products ordered from international online retailers and shipped into the EU are exempt from customs duties if their value is under 150 euros. The forthcoming changes will remove this threshold, mandating that customs duties apply from the first euro of value on all imports. The move is designed to ensure a level playing field between EU-based businesses and foreign competitors, many of whom benefit from lower costs and less stringent regulations.
This regulatory update is a response to concerns about competitive imbalances and instances of customs fraud. According to the European Commission, a significant proportion of packages entering the EU are undervalued on customs declarations to bypass the duty threshold, thereby disadvantaging domestic companies, especially small and medium-sized enterprises. The abolition of the threshold is expected to curb these practices and help prevent the fragmentation of large shipments into multiple smaller parcels, which often leads to increased packaging waste and further strains customs processing capacities.
EU authorities report a sharp rise in the number of parcels entering the bloc, driven by the popularity of international e-commerce platforms. In 2024, around twelve million parcels arrived in the EU each day, with a substantial share destined for markets like Germany. For example, industry data indicates that approximately 400,000 packages from Shein and Temu are delivered daily to German customers, generating billions in annual revenue.
The new customs regime is part of broader efforts to modernize EU customs systems, with a digital platform for processing and monitoring shipments slated to be operational by 2028. An interim solution is expected to be implemented as early as next year by member states. The planned reforms also include consideration of a flat handling fee of up to two euros per parcel to further manage the surge in imports from non-EU countries.
Consumer protection organizations have welcomed the move as an initial step to managing the surge of small parcels and ensuring greater accountability among online marketplaces. They highlight the need for stronger enforcement to prevent the distribution of unsafe or non-compliant products, particularly in the low-cost segment, which has been shown to frequently fall short of EU safety standards.
Major online retailers, including Amazon, have expressed support for enhanced customs controls to promote fairer competition and tackle fraudulent practices. Meanwhile, industry associations continue to call for stricter oversight of international platforms, citing ongoing challenges related to product quality, regulatory compliance, and environmental impact.
Both Temu and Shein have become increasingly popular with European consumers, ranking among the leading online shopping destinations in Germany. However, the rapid expansion of these platforms has prompted calls for more robust regulation to address concerns over transparency, taxation, and adherence to local laws.
The EU's latest customs measures represent a significant policy shift aimed at reinforcing fair competition, reducing fraud, and supporting domestic businesses in the face of growing cross-border online shopping. The changes are expected to have a noticeable impact on the pricing and availability of imported goods, particularly for consumers who frequently purchase inexpensive products from non-EU sellers.