The European Commission on Wednesday introduced a proposal to reform the European Union’s customs regulations, which includes the elimination of a rule that currently exempts goods valued under €150 from customs duties. The proposed changes would require large online platforms to collect these duties on products sold to EU consumers from outside the bloc.
Commission officials stated the reform aims to modernize customs procedures, address challenges posed by the growth of e-commerce, and create more equitable competition for businesses within the European Union. The proposal will now be sent to the European Parliament and the Council of the European Union for deliberation as part of the EU’s legislative process.
Under the current system, packages with a declared value of less than €150 are exempt from customs duties. The European Commission reported that this exemption is frequently exploited, with a significant portion of parcels being deliberately undervalued to avoid import fees. According to the Commission, approximately 65% of such declarations are undervalued, resulting in substantial revenue losses for EU member states.
The proposed new framework would make online platforms, such as Shein, Temu, and AliExpress, legally responsible for ensuring that customs duties and Value Added Tax (VAT) are paid at the time of purchase. These platforms would be designated as the “deemed importer.”
The reform also introduces a simplified tariff system for low-value goods. Instead of thousands of potential customs duty categories, the new rules would group these common e-commerce purchases into four broader categories with simplified duty calculations. The Commission asserts this change would make it easier for platforms to calculate and collect the correct tariffs from consumers.
In a press release announcing the measures, the Commission said the changes would “level the playing field for EU industry,” as European businesses are required to charge VAT on their products, a cost not always applied to imported goods under the current system. The EU executive body estimates that over one billion parcels purchased online from outside the EU enter the bloc each year.
This e-commerce regulation is part of a wider customs reform package that includes the creation of a new EU Customs Data Hub. This centralized data system would provide authorities with a more comprehensive overview of supply chains and goods entering the Union. The Commission has presented the reform as a necessary step to manage the increasing volume of trade and enhance the enforcement of EU safety, environmental, and product standards.
