EU Commission Proposes Suspending Duty Exemption for Low-Value Imports

The United States isn’t the only place duty-free entry hangs in limbo for low-cost items.

The European Commission announced earlier this month that it had put forth a variety of proposals related to e-commerce imports. But perhaps the proposal that carries the most immediate impact is related to the European Union’s duty exemption for low-value imports.

Similar to the U.S.’s de minimis exception—which allows parcels valued at less than $800 to enter the country without duties—the EU’s duty exemption permits parcels valued at less than €150 ($155.44) to enter the bloc without duties. But that may soon change.

According to the Commission, it will pursue collapsing the duty exemption, which would mean that parcels previously privy to duty-free entry would be required to pay any applicable duties. But the regulatory body wants member countries to consider taking it one step further.

“The Commission also invites the co-legislators to consider further measures, such as a non-discriminatory handling fee, on e-commerce items imported in the EU directly to consumers, to address the scaling costs of supervising compliance of billions of such consignments with EU rules,” the body wrote in a statement.

A handling fee like the one the lawmakers address in that statement would apply equally to all importers that meet a certain set of criteria, which could be built around type of product or other identifying factors.

The decision to pursue such action came just days after U.S. President Donald Trump put tariffs on Chinese goods into place, wiping out the U.S. de minimis exemption alongside the tariffs. Since then, Trump has reinstated de minimis, though his administration has noted that companies should prepare for it to be rescinded again once U.S. Customs and Border Protection (CBP) can build out the infrastructure to keep up with the wave of packages that would otherwise pass through without scrutiny or duties. In the U.S., CBP recorded 1.36 billion such packages in 2024.

In the EU, the number of low-value goods coming in below the duty threshold is more than thrice what the U.S. sees in a year. According to the European Commission, in 2024, the bloc saw 4.6 billion duty-free packages flow through its countries’ borders, despite the fact that its threshold for duty-free entry is far less than the U.S. baseline.

EU officials said the bloc has found that some of the goods that entered this way were later found to be non-compliant with EU regulations, which puts consumers at risk of purchasing counterfeits unwittingly and simultaneously damages European sellers’ businesses. EU data shows that seven in 10 Europeans regularly purchase products online, and the Commission said it aims to help protect consumers’ interests while doing so with its newly proposed action items.

For that reason, some of the other proposed actions include prioritizing enforcement of consumer-facing technology legislation like the EU Digital Services Act; using emerging technologies to expose non-compliant imports; increase the penalties associated with those repeatedly violating compliance laws and more.

If the member states of the EU Commission put the proposed measures into place, the Commission will observe their impacts for a year, then share information about how increased controls impacted those countries and their citizens.

Henna Virkkunen, executive vice president for tech sovereignty, security and democracy for the Commission, said the body wants to see the proposed actions usher in a less destructive era for e-commerce in Europe.

“The rise in e-commerce imports to the EU market has brought with it many challenges. The EU is ready to address these challenges, coming together as Team Europe to make sure citizens and businesses can continue to enjoy the many benefits of online shopping, while minimizing the risks of dangerous products that threaten the health and safety of consumers. We want to see a competitive e-commerce sector that keeps consumers safe, offers convenient products and is respectful of the environment,” she said in a statement.