Europe's Parcel Trade Braces for July Reckoning as EU Scraps Duty-Free Threshold

Europe's logistics operators and cross-border retailers have less than a month to prepare for the most consequential customs change the bloc has imposed in two decades, as the European Union readies the abolition of its long-standing duty-free threshold for low-value parcels.

From 1 July, the EU will remove the rule that allowed consignments worth €150 or less to enter without customs duty. In its place comes a fixed duty of €3 per low-value e-commerce item, ending the duty-free treatment for parcels under €150 arriving from outside the bloc. The measure forms the first phase of a wider overhaul intended to modernise import procedures and level the field for European sellers.

Crucially, the charge is not levied per parcel. It applies per item category based on tariff classification, meaning a package containing a smartphone, a charger and earphones attracts three separate €3 charges rather than one, a structure that could sharply raise landed costs on the multi-item orders that define the ultra-low-cost shipping model.

The scale of exposure is considerable. Cross-border e-commerce from China accounts for a significant share of freighter capacity, with 4.6 billion small parcels imported into the EU in 2024.

Early national experiments point to disruption ahead. France introduced a parcel tax in March 2026 that led to a 92% drop in customs declarations for small parcels at Paris Charles de Gaulle and the loss of around 50 freighter flights in the first week.

The reform mirrors Washington's move last August to scrap its own $800 exemption, and reflects a broader convergence among major economies determined to bring low-value imports into the formal customs net.