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EU Plans to Scrap Low-Value Custom Duty Exemption

The European Union is preparing to abolish its long-standing de minimis rule, a move that could significantly reshape the landscape of international e-commerce.

At present, goods valued below €150 can enter the EU without incurring customs duties. That exemption is now set to disappear.

The planned overhaul will take full effect once the EU launches its new customs data platform – an ambitious system designed to enhance oversight of incoming shipments.

Because the rollout may take up to three years, EU officials are developing an interim solution to ensure duties on low-value parcels are collected well before the new platform is operational.

This temporary measure could be introduced as early as next year, driven by mounting concerns over the scale of deliberate undervaluation in cross-border trade. Authorities estimate that nearly two-thirds of parcels declared under the €150 threshold are intentionally mispriced to avoid import charges.

Data from customs authorities shows that China is by far the largest beneficiary of the current exemption. Approximately 91% of parcels entering the EU under the de minimis rule originate from China, reflecting the explosive growth of low-cost online marketplaces that ship individual orders directly to consumers.

The EU’s move mirrors recent changes in the United States. Earlier this year, Washington eliminated its own $800 de minimis allowance – first for Chinese imports in May, then for all foreign shipments in August.

The United Kingdom may soon follow suit. Its £135 threshold is currently under review, and the government may even reduce or entirely removing the tax-free limit in the upcoming budget.

If you would like to discuss these developments or their potential impact, please feel free to contact us.

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