Brussels: Europe and the Arabs

The Council of Member States has formally approved new customs rules for goods contained in small parcels entering the European Union, which are mostly shipped via e-commerce. These new rules address the fact that these parcels currently enter the EU duty-free, creating unfair competition for European sellers. In a statement issued in Brussels, the current rotating Presidency of the EU, represented by Finance Minister Makis Keravnos of the Republic of Cyprus, said:

"With the boom in global e-commerce, EU customs rules must keep pace. Eliminating the old duty exemption for small parcels will help support European businesses and close loopholes for dishonest sellers. Now, we need to move forward decisively with comprehensive customs reform, which is a key part of making the EU more competitive and secure."

According to the European statement, this agreement eliminates the duty-free status based on a specific threshold for parcels valued at less than €150 entering the EU. Customs duties will therefore begin to apply to all goods entering the EU once the EU Customs Data Centre is operational—currently being discussed as part of a broader overhaul of the customs framework. This system is currently expected to be implemented in 2028.

Until then, EU member states have agreed to impose a temporary fixed customs duty of €3 on goods contained in small parcels valued at less than €150 and sent directly to consumers in the EU. From July 1, 2026, the duty will be levied on each category of goods, defined by its respective subheadings, contained in the parcel.

Example:
A parcel contains one silk blouse and two wool blouses.

Therefore, because their subheadings differ, the parcel contains two different goods, and a customs duty of €6 must be paid.

The new system will have a positive impact on the EU budget and the public finances of member states, as customs duties are a key source of revenue for the Union, and member states retain a portion of these revenues as collection fees. This measure differs from the proposed "handling charges," which are currently being discussed within the context of the customs reform package.

According to the European statement, a fixed temporary customs duty of €3 will be levied on each category of goods contained in small parcels entering the EU from July 1, 2026, to July 1, 2028. This duty may be extended as needed. Once the new EU Customs Data Centre is operational, this temporary duty will be replaced by the regular customs duty.

According to the European Commission, the volume of small parcels arriving in the EU has doubled annually since 2022. In 2024, 4.6 billion such parcels entered the EU market. Ninety-one percent of these small shipments originate from China.

More broadly, the EU is currently reforming its customs system to address the significant pressures resulting from increased trade flows, the fragmentation of national systems, the rapid growth of e-commerce, and geopolitical changes. Ongoing negotiations are taking place between the Council and the European Parliament regarding this reform, including the creation of a Customs Data Centre overseen by a new EU Customs Authority.