EU Sends Shockwaves Through Global E-Commerce: Duty-Free Small Parcels to Be Scrapped.

The European Union has officially moved to abolish its long-standing duty-free threshold for low-value parcel imports - a decision that will reshape global e-commerce flows, customs processes, and logistics operations over the next 2–3 years.

What’s changing?

• The current €150 duty-free exemption for small parcels entering the EU will be removed.

• The shift is tied to the EU’s new centralised customs data hub, expected to be fully operational by 2028.

• A transitional mechanism is planned as early as 2026, which will allow EU authorities to begin collecting duties on low-value parcels.

• The policy targets the flood of low-cost e-commerce imports, predominantly from China, and aims to level competition for EU manufacturers and retailers.

Why this matters to logistics & supply chain operators

More compliance pressure: Parcel operators, freight forwarders, and customs brokers will face increased administrative workloads as millions of small parcels suddenly enter the duty-paying category.

Air freight & small-parcel economics will shift: Direct-to-consumer parcel flows into the EU, particularly low-value items, will become more expensive. This may push platforms toward consolidation, bulk imports, or EU-based warehousing.

Ripple effects for Australia and global markets: While the move targets EU inbound flows, it signals a broader global trend. Governments worldwide are reassessing de minimis thresholds. What has long been a loophole for “cheap, duty-free” e-commerce may soon vanish across multiple jurisdictions.

Impact on e-commerce models: Brands shipping directly from overseas into the EU will need to re-engineer their fulfilment, pricing, and landed-cost strategies. DDP vs DDU decisions, warehouse location choices, and tariff modelling will all come under review.

Landed cost recalibration: If your costing model assumes low-value goods avoid duties, that assumption now has an expiry date. Duty will soon apply from the very first euro.

Strategic takeaways heading into 2026

• Reassess de minimis policies in all target markets - the EU may be the first domino.

• Explore EU-based fulfilment or bulk FCL/LCL strategies for cost control.

• Update landed-cost tools to model duties on every SKU, including low-value items.

• Analyse your parcel profile: how many shipments sit under €150, and what happens when they’re no longer exempt?

• Begin stakeholder communication early - price reviews, customer expectations, and fulfilment pathways will all shift.

This is the clearest signal yet that the “ultra-cheap cross-border parcel” era is ending. The EU is drawing a line in the sand - and supply chain teams who adjust early will be the ones who win on cost, compliance, and customer experience.