EU Moves to Scrap De Minimis Rule For Low Value Imports
The European Union is preparing to follow the United States in ending its long-standing de minimis exemption on low-value imports, a move that could reshape global e-commerce flows.
The EU recently voted to abolish the current rule, which allows goods worth less than €150 to enter the bloc free of customs duty. However, the change will not take effect immediately; officials say the exemption will remain in place for up to three years while the EU’s new customs data hub is developed and deployed.
In the interim, EU ministers have committed to finding a temporary mechanism to ensure duties are collected on low-value parcels – potentially as early as next year. The urgency reflects mounting concern about widespread undervaluation of parcels entering the EU, with an estimated 65% of shipments believed to be misdeclared to avoid taxes.
Current data suggests that 91% of goods shipped under the de minimis regime originate from China, where fast-growing platforms such as Temu and Shein have built their business models around low-cost, direct-to-consumer sales.
The policy shift echoes the US decision earlier this year to end its own de minimis threshold for imports under $800. After first targeting Chinese goods in May, the US extended the removal to all countries in August.
Although the changes initially wreaked havoc for major e-commerce suppliers, many – especially Temu and Shein – have since adapted by shipping “duty paid” parcels and increasingly fulfilling orders from domestic warehouses.
The UK may be next to tighten controls. Its £135 de minimis threshold is currently under review, and several analysts anticipate that the chancellor could reduce or eliminate it in the upcoming budget.
