Gathered for a meeting of the Economic and Financial Affairs (Ecofin) Council on Thursday, 13 November, European economy and finance ministers agreed to eliminate the customs duty “exemption threshold” that currently allows parcels entering the EU that are worth less than €150 to be exempt from customs duties.
With this measure, the 12 million small parcels (worth less than €150) that enter the EU every day—91% of which come from China—are going to be subject to customs duties (see EUROPE 13713/19).
These parcels currently represent 65% of total customs flows: current regulatory loopholes encourage foreign companies to divide their shipments into multiple parcels in order to avoid customs duties.
“We ensure that duties are paid from the first euro, creating a level playing field for European businesses and limiting the influx of low-cost goods. We also agreed on the need to work towards a temporary solution as soon as possible in 2026,” stated Danish Minister for Economic Affairs Stephanie Lose, whose country holds the rotating presidency of the Council of the EU.
In fact, the EU27, pushed first and foremost by France, agreed to accelerate the implementation of abolishing the rule—which would [otherwise] not be effected until 2028 at the latest—while simultaneously expediting the creation of the “EU customs data hub”, the central platform that the EU proposed in order to strengthen customs controls, make them more targeted, and ensure they are better coordinated (see EUROPE 13732/23).
A temporary solution is expected to be found to manage the transition and definitively eliminate the customs duty exemption by the first quarter of 2026. The European Commission must present Member States with a concrete proposal by this coming 12 December and the next Ecofin Council meeting.
The EU customs data hub is currently the subject of negotiations between the Council of the EU and the European Parliament in the context of a broader reform of European customs (see EUROPE 13669/13). (Original version in French by Isalia Stieffatre)