Customs: Council agrees to levy customs duty on small parcels as of 1 July 2026 - consilium.europa.eu

The Council of the European Union has reached a general approach on a significant customs reform package, marking a pivotal shift in how low-value shipments will be treated upon entry into the EU. A core component of this reform is the decision to levy customs duty on all small parcels entering the EU, effectively abolishing the current customs duty exemption for goods valued at less than €150. This move is part of a broader effort to modernize customs procedures, enhance compliance, and ensure fair competition within the European market.

This change will primarily affect importers, e-commerce businesses, and consumers involved in the trade of low-value goods into the European Union. Currently, parcels with a value of €150 or less are exempt from customs duties. Once the reform takes effect, all goods entering the EU will be subject to customs duties, regardless of their value. This means that even the smallest shipments will incur duties, impacting the final cost and administrative process for these items. The reform aims to address issues such as undervaluation and non-compliance, which have been prevalent with the previous exemption, particularly in the context of rapidly growing e-commerce.

The new rules are scheduled to come into effect on 1 July 2026. From this date, the existing customs duty exemption for goods valued at less than €150 will be removed. While the specific duty rates will continue to depend on the classification of the goods (Harmonized System codes), the key takeaway is that the threshold for exemption will no longer exist. The reform also aims to simplify customs duties calculation for the most frequent online purchases up to €150, although the precise details of this simplification are yet to be fully defined. Additionally, the reform package includes the introduction of a new "Trust and Check" importer status for trusted businesses and the establishment of a new EU Customs Data Hub.

Importers, customs brokers, and trade compliance officers should begin preparing for these significant changes well in advance of the 1 July 2026 implementation date. Key actions include:

• Reviewing current supply chain models and cost structures for low-value shipments into the EU to understand the financial impact of new duties.
• Assessing the potential impact on pricing strategies and consumer costs for products previously benefiting from the €150 exemption.
• Updating internal systems and processes to account for duty calculations on all parcels, regardless of value, to ensure accurate declarations.
• Engaging with logistics partners, customs brokers, and e-commerce platforms to understand how they plan to adapt to the new requirements and integrate duty collection.
• Monitoring further developments in the legislative process, especially as negotiations with the European Parliament progress, to stay informed about final details.
• Considering the new "Trust and Check" importer status if applicable, which will be introduced for trusted businesses under the reform, as it may offer streamlined processes.