EU to abolish small parcel duty exemption

The European Council is cracking down on the €150 exemption threshold for small parcels arriving from outside the EU, a situtation where they pay zero excise duty

The plan is to abolish the €150 (£132) customs threshold with duties kicking in from the first euro value of the product, bringing the rules in line with existing rules for VAT on imported goods.

The Council is working at pace to roll out new rules as quickly as possible with transitional arrangements to be announced shortly and implementation across the 27 EU member states in early 2026. A fully digitised system will be in place by 2028.

The EU is being inundated with low-value packages from online sellers based mainly in China including Amazon, Shein and Temu, which are able to avoid paying excise duties due to the legacy small package exemption.

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