December 15, 2025
Blog
A major change is coming for any business importing goods into the EU. Starting 1 January 2026, the long-standing customs duty exemption for packages valued under €150 will be removed. This reform means all imports, regardless of value, will be subject to standard duties, directly impacting e-commerce brands, SMEs, and frequent importers.
What’s Changing and Why?
Currently, low-value commercial imports (≤€150) benefit from a duty exemption, simplifying cross-border trade for small parcels. The EU is scrapping this rule to modernize its customs system, address the massive growth of e-commerce parcels, and ensure fair competition for EU producers against overseas goods. The goal is to close a loophole that has led to lost revenue and challenges in monitoring product safety and compliance.
Direct Impact on Your Business
This policy shift will bring tangible changes:
1. Increased Costs: The most immediate effect is higher landed costs. You must now factor potential customs duties into your pricing and margin calculations for every single import.
2. More Administration: Every shipment will require a full customs declaration. While the new system promises streamlined processes for pre-vetted traders, prepare for increased data submission and paperwork.
3. Potential Delays: Customs clearance could add time to your delivery schedules, especially during the initial implementation phase in 2026.
Three Steps to Prepare Now
1. Audit Your Supply Chain: Review your most frequent imports, their values, and origin countries. Identify which product lines will be most affected by new duty costs.
2. Consult Logistics Partners: Talk to your freight forwarder or customs broker now. Understand how they will handle declarations post-2026 and what information they will need from you to ensure smooth clearance.
3. Update Financial Models: Integrate estimated duty costs into your budgets, pricing strategies, and profit forecasts. This visibility is crucial for maintaining profitability.
Conclusion
The end of the €150 duty exemption marks a new chapter in EU trade. By understanding the changes, assessing the impact on your operations, and preparing your logistics and financial processes, you can navigate this transition effectively and avoid unexpected costs and disruptions.
How our sourcing process works?
"See how this works in practice in our How it works overview."