EU introduces EUR 3 levy on small parcels from China

The EU Council has formally approved new customs duty rules for items contained in small parcels entering the EU, largely via e-commerce, a response to what it calls unfair competition for EU sellers. Small parcels currently enter the EU duty-free. According to the European Commission, the volume of small packages arriving into the EU has doubled every year since 2022. In 2024, 4.6 billion such packages entered the EU market. 91% of small shipments arrive from China.

The new rules respond to the fact that such parcels currently enter the EU duty free. The agreement abolishes the threshold-based customs duty relief for parcels valued at under €150 entering the EU. Customs tariffs will therefore start applying to all goods entering the EU once the EU customs data hub – under discussion as part of a broader fundamental reform of the customs framework – is operational. This is currently expected in 2028.

Until that time, EU member states have agreed to introduce an interim flat rate customs duty of €3 on items contained in small parcels valued at less than €150 sent directly to consumers in the EU. As of 1 July 2026, the duty will be levied on each different category of item, identified by their tariff sub-headings, contained in a parcel.

As an example, a parcel contains 1 blouse made of silk and 2 blouses made of wool. Therefore, due to their different tariff sub-headings, the parcel contains two distinct items and €6 in customs duty should be paid.

The new system will have a positive impact both for the EU budget as well as for national public finances, as customs duties constitute a traditional own resource of the Union, and member states retain part of those amounts by way of collection costs. The measure is distinct from the proposed so-called ‘handling fee’ currently under discussion in the context of the customs reform package.

The interim flat rate customs duty of €3 will be levied on each item category contained in a small parcel entering the EU from 1 July 2026 to 1 July 2028 and may be extended as appropriate. Once the new EU customs data hub is operational, this interim duty will be replaced by normal customs tariffs.

Source: EUbusiness