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Duty-Free Days End for the Flood of Cheap Parcels Into Europe

Liège: At this Belgian logistics hub, where millions of parcels from Asian marketplaces pass through each week, the economics of the cheap online order are about to change. The Union is scrapping the rule that let low-value packages slip in duty-free.

From 1 July, the EU applies a fixed customs duty of three euros on items worth less than 150 euros that arrive in small parcels, ending a longstanding exemption that treated tiny shipments as too trivial to tax. The Council had already agreed in late 2025 to abolish the 150-euro relief threshold altogether, closing a loophole that platforms selling ultra-cheap goods had exploited at enormous scale.

The numbers behind the change are striking. Billions of low-value parcels enter the bloc each year, most of them ordered from a handful of vast e-commerce sites, and customs officers have had neither the time nor the data to inspect more than a fraction. European retailers have argued for years that the exemption handed foreign sellers an unfair edge and let unsafe or counterfeit goods reach doorsteps unchecked.

The parcel duty forms one piece of a far larger overhaul. In March, the Parliament and Council struck a political deal on the most ambitious reform of the customs union since its founding in 1968. The Council announced the agreement here, and the Commission summarises the reform here.

At the heart of that reform sits a new EU Customs Authority, based in Lille, and a single customs data hub through which traders will file information once rather than twenty-seven times. The hub opens for e-commerce goods in 2028 and expands to cover all trade by 2034, and officials expect it to save member states up to two billion euros a year in running costs.

Consumers may feel the pinch first. A three-euro charge means little against a fifty-euro gadget, but it bites on the one-euro trinket that only made sense because nobody taxed it. Sellers will decide whether to absorb the fee, pass it on, or bundle orders to spread it thinner.

Supporters call the shift overdue, a way to fund enforcement and level a tilted field. Critics warn of higher prices and slower deliveries while the new systems bed in. Either way, the era of the truly free small parcel is ending, and Liège’s sorting belts will register the change first.