Over recent years the European Union has adopted a 150 EUR threshold that allows customs duty exemption for parcels imported from non EU territories to private individuals located within the EU. This rule has offered a significant advantage for businesses in sectors such as ecommerce by allowing goods to enter the EU without any customs duty charge.

From a customs duty perspective, it has often been more cost effective to fulfil orders to EU private individuals directly from outside the EU rather than importing stock in bulk into an EU country where duty would be charged on the full value.

Risks to EU Tax Offices

The 150 EUR threshold has created several challenges and risks for EU tax authorities, including:

Split Parcels: Businesses may split orders into multiple small shipments to remain below the threshold and avoid customs duty.

Valuation Concerns: Some parcels may be intentionally undervalued in order to fall under the 150 EUR exemptio

Removal of the Threshold

An update in 2023 confirmed that the 150 EUR threshold would be removed by 2028. However, recent indications suggest that EU member states wish to accelerate this timeline due to the issues outlined above.

A temporary mechanism is now expected as early as 2026. This would likely take the form of a flat fee per shipment, meaning that duty may become payable on every parcel entering the EU regardless of value. For example, this could be a simple 2 EUR charge per item.

This represents a significant shift in EU customs policy and will have a material impact on supply chains for businesses that sell into the EU market, as well as on costs for consumers.

Alternative Options for Ecommerce Businesses

Ecommerce providers and other businesses may wish to model alternative fulfilment strategies in light of the expected changes. One strong option is fulfilling orders from within the EU itself.

THG Fulfil continues to operate from its Poland facility, offering cost effective access to mainland Europe. This location is already used by many businesses as part of their EU fulfilment solution and may become even more valuable as customs regulations evolve.