The European Union (EU) has announced that it is scrapping Customs duty exemption on low-value parcels, which covers all parcels valued at under €150 (£129.29).
It is expected to be replaced with a new flat-rate tariff of €3 (£2.59) per item, therefore the flat Customs duty will apply to Business to Consumer (B2C) parcels under €150 that enter the EU.
The EU has stated that it is no longer sensible to maintain the customs duty relief for low-value parcels, due to the digitalised customs processes where electronic data are available for all imported goods regardless of their value. This had previously been introduced to prevent the disproportionate administrative burden on customs authorities, businesses and private individuals.
However, the flat fee is not a permanent regime, as it is only scheduled to apply until Saturday 1 July 2028, pending implementation of the future EU Customs Data Hub and broader customs reforms.
Additionally, the EU have anti-abuse provisions conditions in place that prevent operators from restructuring transactions to avoid the flat-rate tariff charge.
The duty is charged per customs item/declaration line, not per unit, while distance sales imported from outside the EU are the primary focus of the measure. Import One-Stop Shop shipments remain subject to the new customs duty and New Product Identifier requirements will enhance customs controls and traceability.