From 1 July 2026, the European Union (EU) is introducing changes to customs rules for goods being imported from countries outside the EU, including the UK. These are regulatory changes from the European Union and will affect all businesses shipping into the EU, regardless of the value or type of shipment.
What Is the De Minimis Rule?
The de minimis threshold is a customs rule that allows low-value goods to enter a country without import duties.
In the EU, parcels valued below €150 have historically been exempt from customs duties, although VAT still applied in many cases. The system was originally designed to reduce administrative burdens on customs authorities by avoiding the cost of processing millions of tiny shipments.
According to the European Commission, over 4 billion packages entered the EU from non-EU countries in 2024 — around 12 million parcels per day.
Why Europe Is Removing the Exemption
European policymakers argue the existing system no longer reflects modern trade realities.
There are four major reasons behind the reform:
- Protecting European Retailers
- Fighting VAT Fraud and Undervaluation
- Consumer Safety Concerns
- Environmental Pressure
What Changes Are Coming?
The EU’s customs reform package will remove the €150 customs duty exemption for low-value imports.
The reform is being accelerated ahead of a broader customs modernization effort planned for 2028.
Current proposals and agreements include:
- Customs duties applying from the first euro of import value
- New handling or flat-rate fees on low-value parcels
- Expanded use of the Import One-Stop Shop (IOSS)
- Greater liability for marketplaces and overseas sellers
- Increased customs data and reporting requirements
A temporary €3 fee per parcel is expected to apply from July 2026 as part of the transition period.
