EU scraps duty-free exemption on cheap China imports, flat €3 charge from July
Synopsis
Key Takeaways
The European Union has abolished the customs duty-free exemption on low-value imported goods worth up to €150, replacing it with a flat €3 duty per declaration line on all business-to-consumer distance sales. The measure, which took effect starting Wednesday, July 2025, directly targets the surge in low-cost parcels from countries including China and aims to rationalise cross-border e-commerce imports while improving customs transparency.
What the New Duty Means for Shoppers
Under the previous framework, goods valued below €150 entered the EU without attracting any customs duty, a loophole widely exploited by Chinese e-commerce platforms. The new flat-rate duty of €3 per declaration line applies regardless of the item's value, fundamentally altering the economics of low-ticket purchases.
The impact is already visible. A €6 order comprising three different products, for instance, now attracts an additional €9 in flat-rate charges — one €3 levy per declaration line — pushing the total to €15. According to reports, many consumers are cancelling orders upon seeing the revised cost at checkout, indicating an immediate deterrent effect on impulse cross-border purchases.
Who Bears the Responsibility
Responsibility for accurate duty payment rests with the declarant — typically the platform, the seller, or a designated customs representative. Courier companies may pass the €3 charge on to the end consumer, acting as direct or indirect customs representatives. Authorities have clarified that each parcel is treated as a separate shipment for duty purposes.
Notably, where the Import One-Stop Shop (IOSS) system is used for VAT collection at the point of purchase, the process remains simpler: no new liability arises upon delivery, reducing friction for compliant sellers.
Greece and the AADE Announcement
In Greece, the Independent Authority for Public Revenue (AADE) formally announced the change, confirming that customs authorities and economic operators across the EU are already implementing the new framework. Consumers who placed orders before the measure came into force may still face additional charges if their parcels clear customs after 1 July, as couriers may levy the duty at the point of delivery.
Combating False Declarations with Product Identifiers
To address the persistent problem of misdeclared parcel contents — a common tactic used to undervalue shipments — customs authorities are introducing Product Identifier Codes (PID). These codes enable more precise checks and ensure end-to-end traceability of goods. The system will scan codes listed on platforms and in warehouse inventories, according to reports.
Timeline and What Comes Next
The flat €3 duty is a temporary measure, set to remain in force until 1 July 2028. After that date, all e-commerce goods — irrespective of value — will be subject to standard EU tariff rates. The transition is seen as a stepping stone toward full tariff normalisation of the cross-border e-commerce sector, which has grown exponentially on the back of ultra-low-cost Chinese platforms such as Shein and Temu.