By Kevin Akor
BRUSSELS (chatnewstv.com) — The European Union’s Council on Wednesday gave final approval to new customs duty rules that will end duty-free treatment for small parcels entering the bloc, a move aimed at curbing what officials describe as unfair competition driven largely by fast-growing e-commerce platforms such as TEMU and other low-cost online retailers.
The decision abolishes the long-standing exemption for parcels valued under €150, meaning customs tariffs will apply to all goods entering the EU once a new EU customs data hub becomes operational, currently expected in 2028.
“As global e-commerce booms, EU customs rules must keep pace,” Makis Keravnos, Cyprus’ finance minister, said in a statement.
“Abolishing the out-of-date exemption for small parcels will help support EU business and shut down avenues for unscrupulous sellers. Now, we need to move forward decisively on the overall customs reform which is a key part of the puzzle in making the EU more competitive and more secure.”
Until the new data hub is in place, member states agreed to introduce an interim flat-rate customs duty of €3 on each category of item contained in small parcels valued at less than €150 and sent directly to consumers in the EU. The interim measure will apply from July 1, 2026, through July 1, 2028, and may be extended if necessary.
Under the system, duties will be calculated based on tariff sub-headings. For example, a parcel containing one silk blouse and two wool blouses would be treated as comprising two distinct item categories. A total of €6 in customs duty would therefore be due €3 for each category.
EU officials said the measure is expected to bolster both the EU budget and national public finances. Customs duties constitute a traditional own resource of the bloc, while member states retain a portion of the amounts collected as compensation for administrative costs.
The new duty regime is separate from a proposed “handling fee” that remains under discussion as part of a broader customs reform package.
According to the European Commission, the number of small packages entering the EU has doubled annually since 2022. In 2024 alone, 4.6 billion such parcels entered the EU market, with 91% originating from China a trend closely associated with the rapid expansion of platforms such as TEMU and other direct-to-consumer marketplaces.
The reform is part of a wider effort to modernize the EU’s customs framework in response to rising trade volumes, fragmented national systems, rapid e-commerce growth and shifting geopolitical dynamics. Negotiations between the Council and the European Parliament on the broader overhaul including the creation of a centralized customs data hub overseen by a new EU customs authority are ongoing.
