End of Low-Value Duty Break Looms for EU Importers
The European Union is preparing to follow the United States in ending its long-standing de minimis exemption for low-value imports, a shift that could alter global e-commerce patterns.
EU lawmakers recently approved plans to scrap the rule that currently allows goods valued under €150 to enter the bloc without customs duties. The change won’t be immediate, however; officials say the exemption may not end officially for up to three years while the EU builds and rolls out its new customs data hub.
In the meantime, EU ministers have pledged to introduce an interim system to ensure duties are collected on low-value parcels — potentially as soon as next year. The push reflects growing concern over widespread parcel undervaluation, with an estimated 65% of incoming shipments believed to be misdeclared to avoid taxes.
Data indicates that 91% of items shipped under the de minimis regime come from China, where fast-expanding platforms like Temu and Shein rely on low-cost, direct-to-consumer logistics.
The EU’s move mirrors the U.S. decision earlier this year to abolish its own de minimis threshold for imports under $800. After first applying the change to Chinese goods in May, the U.S. extended it to all countries in August.
Although the changes initially wreaked havoc for major e-commerce suppliers, many – notably companies like Temu and Shein – have since adapted by selling products to consumers “duty-paid” and increasingly fulfilling orders from domestic warehouses.
The UK may be the next to tighten rules. Its £135 de minimis threshold is now under review, and several analysts expect the chancellor to reduce or scrap it in the upcoming budget.
