The end of the €150 customs duty exemption for low-value imports into the EU: What businesses need to know

The European Union (EU) has agreed to abolish the customs duty exemption for parcels valued at €150 or less when imported into the EU from non-EU countries. The agreement made on 12 November 2025 is part of the EU’s agenda to modernise customs. 

Let’s take a look at what this means for cross-border ecommerce businesses, marketplaces, and logistics providers based in and outside the EU. 

• All goods imported from non-EU countries will soon be subject to customs duties, regardless of value. 
  
• EU leaders aim to introduce the reform as early as 2026 to create a fairer and more transparent import system. 
  
• Reviewing import flows, updating data systems, and adopting automation can help manage new duty obligations efficiently.

Under current rules, consignments entering the EU from a non-EU country valued at €150 or less are exempt from customs duties (though they’re still subject to import VAT and require customs declarations). When this threshold is removed, all imported goods regardless of value will be subject to customs duties when imported into the EU.

This rule change was originally expected in 2028 but appears to have been accelerated. Maroš Šefčovič, European Commissioner for Trade and Economic Security, stressed that the EU is determined to deliver the change “as soon as possible next year, instead of 2028.”  

The low-value exemption was created to reduce the administrative burden on customs for small imports and to facilitate trade. However, many non-EU country sellers and marketplaces have used it (possibly through undervaluation or shipment splitting) to avoid customs duties, giving them a competitive advantage over EU-based importers and retailers who pay duties. According to the European Commission, around 4.6 billion shipments valued at under €150 entered the EU in 2024, with around 91% originating from China. Commissioner Šefčovič stated the rule change is “not a technical issue – it is a question of Europe’s capacity to defend its economic interests.” 

Eliminating the exemption means more low-value consignments will be dutiable and subject to full customs formalities. This introduces additional complexity for importers and their logistics/fulfilment partners: duties must be calculated, declared, and paid. Failure to adapt to this change could lead to delays, rejections, or penalties. 

Sellers may need to revisit pricing, shipping models, whether Incoterms (for example DDP vs DAP) are appropriate, and how duty and tax are built into the costs of their goods. Business models that relied on cheaper parcels and shipments may need to adjust or absorb costs. 
 
With all incoming parcels subject to the same customs regime as higher-value goods, EU customs authorities will increasingly demand higher-quality data, such as Harmonised System (HS) codes, origin, value, and seller/shipper EORI numbers

The U.S. de minimis exemption allowing shipments valued at $800 or less to enter duty-free was removed on 29 August  2025. This appears to have provided impetus for the EU’s decision to follow the U.S. and revise its own low-value import rules.  

This knock-on effect is logical. When a major import economy like the U.S. removes its low-value exemption, the competitive, regulatory, and logistical pressures on other trade blocs increase — packing more parcels into formal customs, more data requirements, more compliance risk. The EU’s decision can be seen in this context of global regulatory convergence and tightening on low-value imports.

With changes coming sooner rather than later, non-EU sellers shipping into the EU, platforms facilitating those shipments, and EU businesses relying on the low-value import exemption should take the following steps to avoid disruption in 2026: 

Audit your import and cross-border flows

If you send shipments into the EU, you should take stock of the countries of origin, value bands, HS codes, shipping services, and fulfilment models of your goods/materials. Identify which shipments currently rely on the €150 exemption, and how many will now become dutiable. 

Review which parties are importers of record (seller, marketplace, fulfilment provider, carrier) and understand the implications of changing liability for duties.

Review pricing, Incoterms, and shipping models 

Decide whether you will continue using Delivered at Place (DAP) where the buyer pays import duties on arrival, or switch to Delivered Duty Paid (DDP) so you or your business partners handle duties ahead of delivery — therefore preserving a preferable consumer experience. Consider how duty costs may be built into cost of goods, shipping cost, or the final checkout price. Consider whether you need to consolidate shipments differently or change fulfilment location if duties make non-EU shipping less viable.

Ensure data readiness for customs and VAT

Make sure your systems capture and apply accurate HS codes, country of origin, seller/shipper EORI numbers, value declarations, and product descriptions (vague descriptions will not suffice). If you sell via marketplaces, ensure you understand who has liability for customs duties and that the marketplace’s systems support the necessary data flows.  
 
If you’re using the Import One-Stop Shop (IOSS) scheme, assess if and how the customs duty regime interacts with your VAT compliance management.  

The removal of the €150 customs duty exemption for low-value imports into the EU represents a significant shift — especially for cross-border ecommerce, global sellers, marketplaces, and fulfilment operations. It marks a new era where all parcels, regardless of value, will be subject to customs duties, and where compliance, data quality, and automation become ever more essential.

Avalara cross-border tax automation can help you with duty calculation, item classification, origin determinations, and tracking duty liability by parcel or shipment. By integrating with your systems, you can calculate duty at the checkout and offer an improved, more transparent buying experience.  
 
Avalara can also support reporting and auditing for customs and VAT compliance — so when the duty exemption goes away and more consignments are dutiable, you have the records to support customs risk management. 
 
For businesses that adopt automation, this upcoming change can be managed smoothly — and even yield competitive advantage. Speak with Avalara today about getting support for your customs duty and VAT compliance. You can also watch our webinar series Trade and Tariff Tuesdays for insights into global trade issues and their business implications.  

When will the €150 customs duty exemption officially end?

An exact enforcement date hasn’t yet been announced, but the European Commission has stated its intention to implement the change “as soon as possible next year,” which points to 2026.  

How will this impact my business if I sell low-value goods into the EU?

All imports will become dutiable, so your costs, pricing strategy, and supply-chain models may need revision. You’ll also face more rigorous data-reporting and customs-filing requirements.  

Why is the EU making this change now?

The EU wants to close loopholes that allowed undervalued or split shipments to avoid duty and to create a level playing field for EU businesses. The move also aligns with a global trend — especially following the U.S. decision to suspend its de minimis exemption — towards greater customs transparency and fair competition.