Filenews 16 November 2025
The customs exemption for parcels worth less than €150 is being abolished at European Union level from the beginning of 2026, with all packages sent from third countries now subject to normal controls, duties and prescribed handling fees. The decision was adopted on Thursday by the Council of EU Finance Ministers (ECOFIN), as part of the broader reform of customs rules.
The "pros" include the reduction of unfair competition by foreign companies, the increase in public revenues, the prevention of the shipment of unsuitable products that do not comply with European standards, but also environmental benefits from discouraging the production and overconsumption of items and materials of dubious quality and origin.
The "cons" include the increases in final prices of "very cheap" products from third countries due to customs duties and processing fees that are flooding Europe, a possible burden on lower incomes who are "chasing" low prices, the risk of delays and bureaucracy in customs processing, new costs and procedures for courier/post/customs, but also the need for careful and balanced planning in the imposition of the "management fee" per package (at least €1.5-2 and more according to the proposals so far).
What ECOFIN decided
EU finance ministers agreed last Thursday to abolish the exemption from customs duties for low-value parcels, speeding up the implementation timeline (from 2028 to early 2026) that will provide for a transitional "simple" solution so that all parcels enter customs and customs procedures. While in two years, from 2028, stricter measures will be taken with a new revision of the Directive, based on a new platform on which every purchase from e-shops of third countries imported into the EU will be cleared electronically.
The member states will bring specific implementation proposals for approval in the next ECOFIN in less than a month (until 12/12) with the aim of a new architecture for the import of small parcels from China and third countries, which will be operational "as soon as possible" within 2026, in a way that does not cause additional delays and problems for customs, from the volume of small parcels that will accumulate, while today they pass "duty-free".
What changes for the consumer
Each parcel from a third country will be assessed for customs duties regardless of value (in addition to the VAT already in force and imposed at the time of purchase by the platforms via IOSS/checkout) with the result that the final prices will become higher and less attractive than today in "cheap" packages.
In addition to tariffs, the plan also provides for a separate "handling fee" per small parcel, amounting to about €2 according to the most prevalent proposal so far, as a low nominal charge which will come into force after mid-2026 possibly - although the final amount and plan remains to be politically locked.
How Temu, Shein, Trendyol Are Affected
The sales system applied by corporate platforms such as Temu, Shein, Bangood, Trendyol etc. (but also the purchases of the same type via e-bay) is being targeted, with "decoys" the ultra-low prices (ultra low price) and free shipping to the world (free shipping).
For years, this model was largely based on the low threshold of exemption from EU Customs for purchases up to €150 ("de minimis"). In addition, this limit allowed undercosting by foreign companies or even "breaking" the order by buyers, in order to avoid the limit that had been set.
From the coming months, however, these markets will be burdened by customs duties and fees, limiting the advantage in the final price over European retailers or, possibly, changing the policies of free shipping and returns of these products by foreign companies.
However, the transition to a regime of full customs control can lead to delays and problems for Customs, which requires adaptation and timely upgrade of customs information systems, but also increases the operating costs of the platforms.
What changes for e-shops
For European e-shops, the terms of the game are changing and becoming more equal to their competitors from the East, as directly imported cheap packages will not escape tariffs, limiting the pricing difference with European platforms that pay full duties and comply with strict quality and construction standards.
Why the regime is changing
The explosive increase in small parcels from third-country platforms (such as Temu and Shein) has also caused losses in the Member States, not only because European businesses are affected, but because it is combined with underpricing and circumvention, leading to revenue losses and distortion of competition to the detriment of state revenues and European retail and industry.
The EU is striving for a level playing field, better control of compliance and product safety, and discouraging "fast fashion" practices that inflate an environmental footprint and circumvent European rules.
Commission President Ursula von der Leyen stressed that "from now on, all parcels will go through normal customs procedures" ensuring "fair competition and better consumer protection", with a commitment to support member states with immediate transitional measures.
EU officials point out that up to two-thirds of small parcels are declared underpriced, which will only be addressed by abolishing the exemption and stricter enforcement.
