EU finance ministers have reached a political agreement to end the tariff exemption that still applies to shipments with a declared value of less than €150. Furthermore, they have decided to accelerate its implementation through a transitional mechanism that will allow it to be applied as early as possible in 2026, instead of waiting until the initially planned date.
Although the reform affects sellers from third countries in general, the focus is on parcels from low-cost online retailers that are massively entering the European market. Platforms like Shein and Temu handle a substantial portion of these shipments: the Commission estimates that 4.600 billion low-value parcels were registered last year —around 12 million per day—and that the vast majority originate in China.
What changes and since when
Until now, packages with a declared value below €150 were exempt from tariffs . With the reform, that loophole is closed: imports will now be taxed from the first euro, and the collection of associated VAT will be strengthened.
The original plan linked the measure to the launch of the EU customs data center , scheduled for no later than 2028. However, the 27 member states have agreed to bring forward the measure: work will begin on a simple, temporary solution as early as 2026 , explained Stephanie Lose, Denmark's Minister of Economy and holder of the rotating presidency of the Council.
From the Commission, Vice-President Maroš Šefčovič stressed that it is not just a technical issue, but about defending European economic interests and easing the burden that the volume of low-value parcels places on customs.
Who is affected and why?
The removal of the exemption applies to all purchases from non-EU platforms shipped directly to European consumers. However, the most visible impact is on low-price giants like Temu and Shein, whose growth has been described as “extremely rapid.”
Brussels maintains that the current €150 threshold has become a loophole : according to its data, up to 65% of low-value packages arrive with an understated price to avoid tariffs. This phenomenon harms European retailers who comply with taxes and regulations from the very first euro.
The impact is particularly noticeable in fashion , although it extends to other sectors. In Spain, for example, the toy industry association estimates losses of around 11% of its revenue due to the shift of purchases to foreign online stores during key campaigns.
What will orders and effects for the consumer in Spain cost?
When the reform comes into effect, orders from third countries will be subject to tariffs and VAT from the first euro of the declared value. Depending on the logistics provider, customs handling fees may be added, increasing the total cost of the order.
In addition to the cost, delivery of some shipments may be slightly slower if additional controls are applied. In return, consumers should gain traceability and assurance regarding the origin and conformity of the products.
Data and control: undervaluation, security and customs
The Commission warns of an unprecedented volume: around 4.600 billion low-value shipments in the last year, equivalent to 12 million per day, with a very high proportion of parcels originating from China . EU services report rapidly increasing figures.
Authorities are focusing on the systematic undervaluation of goods to evade tariffs. The reform aims to strengthen the capacity to verify the true value and classification of products, thereby reducing border fraud.
There is also a consumer safety component : with more efficient controls, the aim is to curb the entry of items that do not comply with EU regulations or that could be counterfeit, especially in sensitive categories.
Implementation: provisional phase and customs data center
The application will be rolled out in two stages. First, a provisional phase will enable member states to begin charging tariffs on low-value shipments as early as 2026. Then, full deployment will follow once the customs data center is operational, no later than 2028.
During the temporary phase, simplified procedures and greater responsibility for platforms and operators in declaring value and content could be used, facilitating collection from the first euro and improving the quality of information.
With the data center, a more agile cross-border exchange between customs is expected, which would help detect patterns of abuse, accelerate inspections and ensure the collection of duties and VAT on low-cost parcels.
Impact on European trade
For European businesses, the measure aims to level the playing field against low-cost direct sales from outside the EU . Eliminating the privilege for small shipments reduces the gap between those who declare and pay all taxes and those who competed with an unfair advantage.
Retailers are confident that the reform will reduce downward pressure on prices and improve margin sustainability, particularly in fashion-intensive and consumer goods sectors. In the medium term, the EU expects a positive impact on revenue and the quality of goods entering the single market.
The Ecofin move marks a turning point: the EU sets a date for the withdrawal of the exemption for shipments under 150 euros, strengthens controls against undervaluation, and lays the groundwork for fairer competition , with visible effects for consumers, businesses, and logistics operators in the coming months.
