European Council approves new customs duty reform for small parcels

The charge will be calculated per item category based on tariff sub-headings and remain in force until the proposed EU customs data hub becomes operational, currently expected in 2028, the Council said in a press release.

Once the hub is launched, standard customs tariffs will apply to all goods entering the bloc, replacing the interim flat-rate system. The measure is separate from the proposed ‘handling fee’ under discussion as part of the broader reform package.

“As global e-commerce booms, EU customs rules must keep pace. Abolishing the out-of-date exemption for small parcels will help support EU business and shut down avenues for unscrupulous sellers. Now, the Council need to move forward decisively on the overall customs reform which is a key part of the puzzle in making the EU more competitive and more secure,” said Makis Keravnos, Minister of Finance of the Republic of Cyprus.

The new system is expected to positively impact both the EU budget and national public finances. Customs duties constitute a traditional own resource of the Union, and member states retain a portion of the collected amounts as collection costs.

According to the European Commission, the volume of small packages entering the EU has doubled annually since 2022. In 2024 alone, 4.6 billion such packages entered the EU market, with 91 per cent arriving from China.

The EU is advancing a broader overhaul of its customs framework to address rising trade flows, fragmented national systems, rapid e-commerce growth and shifting geopolitical realities. Negotiations between the Council and the European Parliament, including on the establishment of a new EU customs authority to oversee the data hub, are ongoing.

Fibre2Fashion News Desk (CG)