The European Union abolishes customs duty exemption for low-value consignments and introduces a transitional fixed-duty system
The Council Regulation (EU) 2026/382 introduces a significant amendment to EU customs legislation by removing the threshold-based duty exemption previously applicable to certain low-value imports arriving from third countries. The measure represents a structural shift in the fiscal and customs treatment of international e-commerce shipments and small consignments destined for consumers and businesses within the European Union.
Legal background and previous framework
Prior to this reform, EU law provided that goods sent directly from a third country to a recipient within the Union were exempt from import duties where the intrinsic value of the consignment did not exceed €150. This exemption was laid down in Chapter V of Title II of Regulation (EC) No 1186/2009, which is now expressly repealed by the new act.
The regulation also recalls that, since 1 July 2021, another important fiscal relief had already been abolished: the VAT exemption for imported goods valued below €22. That earlier reform responded to the explosive growth of cross-border e-commerce and the difficulties customs authorities encountered in ensuring compliance with tax obligations. Nevertheless, while the VAT exemption disappeared, the €150 customs duty exemption remained in place, creating a hybrid framework that, according to EU institutions, facilitated abusive practices.
Among the problems identified were systematic undervaluation of goods and artificial splitting of consignments in order to keep individual parcels below the permitted threshold. Such practices not only reduced public revenue but also produced competitive distortions between EU-based traders and sellers located in third countries.
Reasons for the reform
The Council considers that the exemption is no longer justified from either an administrative or an economic standpoint. The digitalisation of the customs environment now allows electronic data to be obtained for all imported goods regardless of value, removing the historical rationale that the threshold was needed to avoid disproportionate administrative burdens.
In addition, the volume of small consignments entering the Union has reached very high levels, making it necessary to strengthen controls and better safeguard the financial interests of both the Union and its Member States. In this context, abolishing the threshold is presented as a measure designed to reinforce the integrity of the single market and ensure fairer competitive conditions.
Entry into force and applicability
The regulation provides that it will enter into force twenty days after its publication in the Official Journal of the European Union, which places the date at 10 March 2026. However, its substantive application will begin on 1 July 2026, from which point the customs duty exemption will cease to exist in EU law. As an EU regulation, it will be binding in its entirety and directly applicable in all Member States without the need for national transposition.
Transitional regime: €3 duty per article
To facilitate implementation and taking into account that the future centralised EU customs IT infrastructure is not yet operational, the act introduces a temporary mechanism that will apply from 1 July 2026 until 1 July 2028. During that period, a fixed customs duty of €3 per article will be charged on consignments whose intrinsic value does not exceed €150, replacing the abolished exemption.
This simplified treatment will apply only where one of the following conditions is met:
a) the importation is exempt from VAT under the special scheme linked to the Import One-Stop Shop (IOSS), or
b) the goods are contained in postal consignments as defined under EU law.
For operators who do not fall within those categories, the Common Customs Tariff will continue to apply in accordance with the standard rules, meaning that the duty payable will depend on tariff classification and origin of the goods.
Technical features of the temporary system
The transitional model is designed as a simplified framework intended to function using the digital tools currently available at national and EU level. The duty is a single specific amount per article, independent of the origin of the goods, and allows tariff classification to be carried out only at the level of Harmonised System subheadings rather than the full Combined Nomenclature. This approach aims to reduce operational burdens for customs administrations while the new centralised IT system is being developed.
Monitoring, review mechanisms and possible adjustments
The regulation establishes oversight mechanisms to assess the real-world effects of the reform. First, the Commission must evaluate — no later than 1 October 2026 and monthly thereafter — whether any diversion of trade flows occurs, for instance shifts toward alternative import channels to avoid payment of the fixed duty. If such distortions are identified, the Commission may submit proposals to extend the scope of the transitional regime.
Second, before 1 December 2027, the Commission must assess whether the EU’s centralised IT infrastructure for collecting import duties will realistically be operational by 1 July 2028. If it determines that this deadline cannot be met, it may propose extending the transitional system to ensure continuity until the new technological framework is ready.
Practical and economic impact
In practical terms, abolishing the exemption marks the end of duty-free imports for low-value consignments entering the Union from third countries. The reform is expected to affect online marketplaces, logistics operators, postal services, international sellers and consumers, all of whom will need to adapt to a more uniform and stricter regulatory environment.
EU institutions consider that the measure will strengthen fiscal fairness, improve revenue protection and reduce avoidance practices, while modernising the customs system to reflect the realities of digital trade and the rapid expansion of global e-commerce.
Official sources:
Official Journal of the European Union — Regulation (EU) 2026/382
