E-commerce: 150 EUR customs duty exemption threshold to be removed as of 2026
- barboraarendasova
- 5 hours ago
- 2 min read
The European Commission welcomes the political agreement reached by EU Member States today within the Council to remove the 150 EUR customs duty relief threshold, transforming the way e-commerce goods are handled.
The Commission together with the Council committed also today to work on a temporary solution to collect the custom duties on e-commerce packages as early as possible in 2026 and well ahead of the creation of the EU Customs Agency and the EU Data Hub in mid-2028. This abolition has also been supported by the European Parliament in their Resolution of 9 July 2025 on product safety and regulatory compliance in e-commerce and non-EU imports (2025/2037(INI)).
This agreement, in addition to the position taken by the Council in their mandate in June 2025 to collect an e-commerce handling fee as of November 2026, is a pivotal step towards modernising and simplifying EU customs operations, supporting fair competition and a level playing field across retail and e-commerce.
The change is the first achievement of the 2023 Customs Reform proposal by the Commission to address the challenges of e-commerce stemming from the dramatic increase of low-value goods arriving from non-EU countries directly to EU consumers. Given the urgency stemming from an increasing boom of e-commerce, Member States and the Commission agreed to act faster than initially proposed and decided on an earlier application date of the measure already in 2026.
Removing the 150 EUR customs duty exemption threshold
Today, parcels valued below EUR 150 that are sent from a third country to a consumer in the EU are exempted from customs duties although being subject to VAT and customs declarations. Given the evolution of the e-commerce model, the exemption is no longer justified and creates unfair competition. The removal of the threshold aims to level the playing field between ecommerce (direct imports of individual parcels up to 150 EUR) and traditional retail (imports of goods in bulk).
This measure would be accompanied by a simple, temporary solution for the calculation of customs duties in the interim period, until mid-2028, when the EU Customs Data Hub will provide the functionalities for calculating the customs duties on e-commerce transactions.
By addressing the 150 EUR threshold and simplifying duty calculations, the EU reiterates its commitment to fostering a competitive and dynamic commercial environment, responsive to the evolving landscape of global trade. This groundbreaking agreement paves the way for a more streamlined, transparent, and equitable customs regime. It will be followed by the conclusion of the trilogues on the overall customs reform.
Image source: als.com.vn
