The European Union has introduced a flat customs duty on small packages from non-EU countries, removing a long-standing tax exemption [1].

This policy shift targets the massive influx of low-cost goods from global e-commerce platforms. By eliminating the duty-free threshold, the EU aims to protect fair competition for local businesses and reduce the environmental impact caused by the surge in small-parcel shipments [1], [2].

Previously, shipments with a value of up to 150 euro [1] were exempt from customs duties. Under the new regulations, this threshold has been abolished, meaning that small imports, including those from the U.S. and China, will now be subject to tariffs regardless of their total value [1].

EU officials said the rise of ultra-fast-fashion and discount retailers such as Shein and Temu were drivers for the change [1], [2]. These companies have utilized the previous exemption to ship millions of small, inexpensive items directly to consumers across all EU member states without paying import duties [1].

The new rules became effective on July 1, 2024 [1], [2]. While some reports suggested a later implementation date, primary sources from the EU Commission and customs authorities confirm the 2024 start date [1].

Customs authorities in all member states are now tasked with enforcing the flat rate on these imports. This measure is intended to create a more level playing field between international sellers who ship directly to consumers and EU-based retailers who must pay import duties on the goods they stock in warehouses [1], [2].

“The EU aims to protect fair competition for local businesses.”

The removal of the 150 euro threshold represents a strategic move by the EU to curb the dominance of 'direct-to-consumer' shipping models used by Chinese e-commerce giants. By increasing the cost of small imports, the EU is attempting to discourage the high-volume consumption of disposable goods and shift the economic advantage back toward domestic retailers who operate within the EU's regulatory and tax frameworks.