EU Finance Ministers Approve New Customs Duty on Imported Small Parcels

Brussels: EU finance ministers have officially sanctioned a fixed customs duty of three euros on small parcels imported into EU member states, starting from July 1, 2026. This decision aims to address the burgeoning influx of low-cost imports, primarily facilitated by Chinese e-commerce giants like Shein and Temu.

According to Kuwait News Agency, the Council's press release highlighted that this decision follows closely on the heels of the EU's recent move to abolish the customs exemption for parcels valued under 150 euros, which are shipped directly to consumers within the member states. The vast majority of these parcels originate from platforms based in China.

The Council pointed out that the previous exemption from customs duties had resulted in unfair competition for local EU sellers and posed potential risks to consumer health and safety. Additionally, the rise in shipments has been linked to increased fraud cases and environmental concerns.

This newly approved measure will remain effective until the implementation of a permanent system, agreed upon in November 2025, which will entirely eliminate the customs duty exemption threshold for small parcels. The duty will be applicable to goods valued under 150 euros imported from non-EU sellers registered in the Import One-Stop Shop (IOSS) system for value-added tax purposes. As per the EU's data, these goods constitute 93 percent of e-commerce inflows into the region.

The Council emphasized that this initiative is part of its commitment to develop a straightforward and temporary solution for imposing customs duties on such parcels, with plans to continue until the permanent system is operational, thus ensuring that all parcels valued under 150 euros will be subject to standard EU tariff rates based on their product category.