The Council today took action to tackle the influx of small parcels that are currently not liable for customs duties into the EU - a problem that leads to unfair competition for EU sellers and raises environmental concerns.
Stephanie Lose, Danish minister for economic affairs, said, "I am very pleased that we have reached an agreement on eliminating the €150 customs threshold. We ensure that duties are paid from the first euro, creating a level playing field for European businesses and limiting the influx of low-cost goods. We also agreed on the need to work towards a temporary solution as soon as possible in 2026."
As a long-term measure, EU finance ministers agreed to abolish a rule allowing goods worth under €150 to enter the EU without customs duties being paid. With this change, relevant customs duties will apply to all goods entering the EU, bringing the system into line with existing rules for value-added tax on imported goods.
The new rule will start applying once the EU customs data hub, the proposed EU central platform for interacting with customs and strengthening controls, is up and running - currently expected in 2028. The hub is currently under negotiation between the Council and the European Parliament as part of a broader fundamental reform of the EU customs framework. Its capabilities, which will enable calculation and notification of customs debt on a per-item basis, will allow customs authorities across the EU to apply the full customs regime to small packages entering the EU.
As a result of the current rule, estimates show that up to 65% of small parcels entering the EU are undervalued to avoid customs duties on import. Aside from its effect on the competitiveness of EU companies, the threshold has also raised environmental concerns, given the incentive for non-EU companies to split shipments into individual parcels when sending goods into the Union. According to the Commission, 91% of all e-commerce shipments valued under €150 came from China in 2024.
Due to the urgency of the situation, the Council also made a commitment today to work towards a simple, temporary solution to levy customs duties on such goods as soon as possible in 2026 and until the customs data hub becomes operational in 2028. Work to develop the solution will continue in the coming weeks.
