EU to Start Charging Duties on Low-Value Parcels in 2026: Major Changes for Cross-Border E-Commerce

Europe’s cross-border e-commerce landscape is on the verge of another major shift. The European Union has confirmed that the long-standing €150 duty-free threshold for imported parcels will be abolished much earlier than originally planned.

Although this change was initially scheduled for 2028, EU finance ministers have now agreed to implement the measure as early as 2026. This means low-value parcels—currently exempt from customs duty—will soon be subject to charges.

EU to Impose Duties on Parcels Under €150 Starting in 2026

During a recent Economic and Financial Affairs Council meeting, EU leaders emphasized the need to ensure fair competition and protect EU-based businesses. The announcement highlighted:

• A political agreement to eliminate the €150 duty exemption
• Implementation targeted for 2026
• A transitional phase lasting until 2028
• A mechanism to control the surge of tax-free small parcels entering Europe

The European Commission noted that this temporary measure is designed to bridge the gap before the new EU Customs System is fully operational. Technical details will be finalized in the coming weeks.

Why Is the EU Accelerating This Policy?

The EU cites several reasons:

• Fair competition — Addressing the competitive imbalance between EU sellers and low-cost non-EU shipments
• Market regulation — Reducing the uncontrolled inflow of tax-exempt parcels
• Customs modernization — Transitioning toward a stronger, more transparent customs system

This aligns with EU leaders’ push to bring reforms forward, rather than waiting until 2028.

What Exactly Will Be Charged?

Although detailed rules are still being drafted, current indications suggest:

• Low-value parcels will pay duty beginning in 2026
• The measure is temporary until 2028
• The duty could follow the previously proposed €2 per parcel model, plus applicable product tariffs

The ultimate goal is to ensure that every imported parcel is processed under the same customs framework, closing loopholes in the existing system.

How Will This Impact Cross-Border Sellers?

1. Significant Cost Increases

Moving from tax-free to taxed imports will immediately increase costs. Aside from the potential €2 fee, sellers must consider:

• Product-specific duty rates
• VAT obligations (often 20–25% in EU countries)
• Additional customs handling charges

Profit margins on small parcels will shrink, especially for low-ticket items.

2. Stricter Customs Requirements

Sellers may need to provide more detailed import information, including:

• Precise HS codes
• Product material and usage
• Importer credentials
• More detailed e-commerce declarations

Customs clearance may take longer for improperly declared shipments.

3. Logistics Model Shifts: Air Freight Down, Sea Freight + Overseas Warehousing Up

Based on similar changes in the United States (after the de minimis debate), analysts expect:

• Air parcel volumes to decrease due to higher landed costs
• More sellers shifting to sea freight, especially consolidated shipments
• Overseas warehouse fulfillment becoming a preferred model

When direct delivery becomes expensive, “ship to warehouse → local fulfillment” becomes the safer alternative.

4. Potential Compliance Risks

Europe’s tax and customs framework already includes “duty deferral” mechanisms, which have historically led to gray practices and compliance issues. With the added complexity of low-value parcel taxation, the risk landscape may grow even more complicated.

As one freight forwarder noted: “The moment this rule kicks in, the EU logistics environment may become overwhelmingly chaotic—there will be more problems than anyone can keep up with.”

Conclusion: A Major Turning Point for EU Cross-Border Shipping

The EU’s accelerated move to tax low-value parcels in 2026 is a signal that significant structural reforms are underway. Sellers shipping to Europe should prepare now by:

• Evaluating product profitability under new duty rules
• Considering overseas warehouses or consolidation via sea freight
• Ensuring stronger customs compliance

While many details are still pending, one thing is clear—the EU small-parcel environment is about to change dramatically, and those who adapt early will gain a major competitive advantage.