EU introduces customs duty on small parcels: fixed rate to be in effect for two years

On February 11, the Council of the European Union approved changes to the customs taxation rules for small parcels, which mainly arrive in the EU through e-commerce. From now on, duty-free import of parcels worth up to 150 euros has been canceled. This was reported by the press service of the Council of the EU.

It is noted that such parcels were previously imported without paying duty, which created unfair competition for sellers from EU countries. The new rules are aimed at leveling the playing field for all market participants and supporting European business.

The reform will be implemented in two stages. The first stage will last from July 1, 2026 to July 1, 2028: a temporary fixed duty rate of 3 euros is set for parcels for each category of goods in the shipment. The second phase will start in 2028 after the launch of the EU Customs Data Centre, when the temporary levy will be replaced by standard customs tariffs according to the classification of goods.

The duty calculation mechanism provides that €3 is paid not for the entire parcel as a whole, but for each individual tariff sub-item. For example, if a parcel contains one silk blouse and two wool blouses, these are two different categories of goods, and the total duty will be €6.

The reason for the reform is the rapid growth in the volume of small parcels to the EU. According to the European Commission, in 2024 the bloc received 4.6 billion such shipments, 91% of which came from China, and the number of parcels is doubling every year. Cyprus Finance Minister Makis Keravnos noted that the abolition of duty-free imports will help close the doors for unscrupulous sellers and support legitimate EU businesses.

The new system is expected to increase revenue for the EU budget and the national budgets of the Member States, while stimulating the development of the internal market and protecting European manufacturers from uncompetitive conditions.

Thus, e-commerce parcels will no longer be left outside customs control, and the two-step system will allow them to be gradually integrated into the common taxation rules of the bloc. This creates transparent conditions for all market participants and provides additional revenues for the Member States.