The European Union has introduced new customs rules that will affect millions of imported parcels entering its market. The decision was approved by the Council of the European Union and marks a major change in how small online purchases from outside the EU are handled.
For many years, parcels valued at less than 150 euros were exempt from customs duties when entering the EU. This made it easier and cheaper for consumers to order low-cost goods from international sellers. However, starting July 1, that exemption will end. A flat-rate customs duty of 3 euros will apply to each different item category contained in small parcels sent directly to consumers.
This means that if a parcel contains two different types of products, the total customs duty would be 6 euros. The new rule is an interim measure that will remain in place while broader customs reforms are being prepared.
The main reason behind this change is the rapid growth of cross-border ecommerce. In 2025 alone, 5.8 billion low-cost parcels entered the EU. This represents a 26 percent increase compared to the previous year and more than four times the number recorded in 2022. Most of these parcels originate from China and are sold through popular online marketplaces such as AliExpress, Shein, and Temu.
The sharp increase in parcel volumes has created serious challenges for customs authorities across EU member states. Inspecting billions of small packages each year has proven extremely difficult. As a result, many unsafe or non-compliant products have entered the European market. A recent customs control operation showed that a large share of goods shipped directly from third countries do not meet EU product rules and safety standards.
The European Commission has acknowledged that the growth of ecommerce imports is happening faster than enforcement systems can adapt. This situation not only raises concerns about consumer safety but also affects the competitiveness of European businesses, which must comply with strict regulations and standards.
The new 3-euro flat-rate duty is designed to help manage this growing flow of imports while preparing for a more comprehensive reform. In the coming years, the EU plans to introduce the EU Customs Data Hub, expected to become operational around 2028. Once in place, customs tariffs will apply to all goods entering the Union, and the previous exemption for parcels under 150 euros will be fully abolished.
Overall, the new rules reflect the EU’s effort to respond to the realities of modern ecommerce. As online shopping continues to expand across borders, regulatory systems are being updated to protect consumers, support fair competition, and strengthen customs control within the single market.
These evolving customs laws in the EU are going to be closely watched by major players in the ecommerce space like Alibaba Group Holding Ltd. (NYSE: BABA) given the impact they are likely to have on the merchants using their platform.
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