EU Ends Duty-Free Treatment for Low-Value E-commerce Imports: What Businesses Need to Know

Why Has the EU Made This Change?

Previously, commercial goods valued at less than €150 (£135)could enter the EU without customs duties being applied. While VAT and certainother charges could still be payable, the duty exemption was designed forlow-value imports.

However, the rapid growth of global e-commerce has led tobillions of low-value parcels entering the EU each year. The EuropeanCommission believes the exemption created an uneven playing field betweenoverseas online retailers and businesses already established within the EU.

By removing the de minimis threshold, the EU aims to:

• Create fairer competition between EU retailers and overseas sellers.
• Reduce the risk of goods being deliberately undervalued.
• Improve customs compliance and revenue collection.
• Strengthen customs controls across all imported goods.

A Temporary €3 Handling Charge

To help customs authorities manage the significant increasein declarations, the EU has also introduced a temporary €3 handling charge fordirect-to-consumer e-commerce parcels requiring customs processing.

Although intended as a short-term measure while new customssystems are introduced, the additional administration is expected to increaseprocessing costs for many businesses shipping into the EU.

What Does This Mean for Businesses?

If your organisation exports goods into the European Union,you should expect:

• More customs declarations.
• Additional administration for every shipment.
• Longer customs processing times during peak periods.
• Increased landed costs that may need to be reflected at checkout.
• Greater importance of providing complete and accurate customs documentation.

Businesses that fail to prepare could experience avoidabledelays, increased customer enquiries and additional operational costs.

Preparing for the New Rules

There are several practical steps businesses can take tominimise disruption:

Provide Complete Shipment Information

Accurate customs data has never been more important. Ensureevery shipment includes:

• Correct commodity codes
• Accurate product descriptions
• True customs values
• Country of origin
• Full recipient contact details, including email address where possible

Complete information helps reduce customs queries and speedsup clearance.

Submit Customs Documentation Electronically

Electronic customs documentation allows carriers to beginclearance processes before goods arrive at the border, reducing delays andimproving efficiency.

Many carriers now offer paperless customs solutions thatsimplify international shipping while reducing paperwork.

Be Transparent About Import Costs

Unexpected customs charges remain one of the biggest causesof customer dissatisfaction in cross-border e-commerce.

Where possible, businesses should consider offeringcustomers a fully landed cost at checkout, allowing duties, taxes and fees tobe paid upfront and reducing the likelihood of refused deliveries.

The Impact on Courier and Logistics Businesses

For courier companies, freight forwarders and fulfilmentproviders, the removal of the de minimis threshold will significantly increasecustoms activity across millions of low-value shipments.

As customs processes become more complex, businessesthroughout the supply chain will need to adapt their systems, customercommunications and operational processes to maintain service levels.

How Controlaccount Can Help

Changes to customs regulations often result in increasedpayment disputes, delayed invoices and rising debtor balances across thelogistics and e-commerce sectors.

At Controlaccount, we work with courier companies, freightforwarders, logistics providers and international supply chain businesses torecover overdue commercial debts quickly and professionally, helping improvecash flow while protecting valuable customer relationships.

If your business is experiencing an increase in overdueaccounts as a result of changing international trading conditions, ourspecialist logistics debt recovery team is here to help.

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