The Council of the European Union today reached an agreement to eliminate threshold-based customs exemption for packages valued at less than 150 euros that enter the EU. Customs tariffs will therefore begin to be applied to all goods entering the EU as soon as the EU Customs Data Center becomes operational, which is being discussed as part of a broader fundamental reform of the customs framework. That is currently expected to happen in 2028.
Until then, EU Member States have agreed to introduce a right of provisional customs fixed rate of 3 euros on items contained in small packages valued at less than 150 euros shipped directly to EU consumers. Starting July 1, 2026the duty will apply to each of the different categories of articles, identified by their tariff subheadings, contained in a package.
One package contains one silk shirt and two wool shirts. Therefore, since these are different tariff subheadings, the package contains two different items, and 6 euros in customs duties would have to be paid.
The provisional customs duty at a flat rate of 3 euros will be applied to each category of item contained in a small package entering the EU between July 1, 2026 and July 1, 2028and may be extended as appropriate. Once the new EU Customs Data Center becomes operational, this provisional duty will be replaced by normal customs tariffs.
According to the European Commission, the volume of small packages arriving in the EU has doubled every year since 2022. In 2024, 4.6 billion such packages entered the EU market. 91% of small shipments come from China.
More generally, the EU is currently working to reform its customs system so that it can cope with significant pressure from increasing trade flows, fragmented national systems, the rapid rise of e-commerce and evolving geopolitical realities. Negotiations between the Council and the European Parliament on reform, in particular as regards the creation of the customs data center supervised by a new EU customs authorityare in progress.
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