BY SHAHAB WAHDATEHAGH
Small packages that have long entered the EU market almost unnoticed are now subject to a fee. Today, July 1, the EU is introducing a new flat-rate customs duty for shipments valued at less than 150 euros from countries outside the Union. The fee is 3 euros per package, and for companies with large and fast-moving shipments, this marks a significant shift: customs clearance is becoming a central part of the business.
The EU is now targeting low-cost shipments from countries outside the Union. The fee is intended to strengthen the single market, create a more level playing field, and tighten controls over which products reach European consumers. At the same time, the goal is to manage the rapidly growing volumes of small packages, where current regulations have not kept pace with developments. Until now, shipments valued at less than 150 euros have been exempt from customs duties. This has enabled e-commerce operators outside the EU to build business models based on large volumes of small, direct-delivery packages and orders that have been split up to fall below the threshold. The result has been increased volumes, more fragmented flows, and an administrative burden that has grown faster than the regulatory framework.
Significant impact
For logistics-intensive businesses, the change is far from cosmetic. Each individual shipment will become more expensive to handle, while at the same time there will be greater incentives to consolidate flows, locate warehouses closer to the market, and use distribution hubs within the EU. Direct shipments from third countries are becoming less attractive, especially when combined with stricter data quality requirements and more robust customs declarations. For logistics-intensive businesses, this means that systems, processes, and master data must be adapted immediately. Those who lack control over declaration data, order structure, and delivery arrangements risk not only higher costs but also longer lead times and more errors in the supply chain. Customs thus becomes a matter of operational robustness, not merely compliance. At the same time, the fee is only a first step. The flat-rate customs duty will apply for two years, through July 1, 2028, when it will be replaced by standard customs duties. In addition, new declaration codes for distance sales are already being introduced, which further increases the demands for accurate and structured data management.
New business models, changing trade patterns
There is also a clear strategic dimension. When the exemption for low-value shipments is eliminated, the advantage of business models based on many small direct deliveries will diminish. Instead, incentives will be strengthened for more integrated supply chains, better inventory management, and a clearer division of responsibilities among the parties involved in the import process. For many companies, this means that purchasing, transportation, and customs procedures must be viewed as an integrated whole. For consumers, the change means that certain low-priced goods will become more expensive. For European companies, however, it may contribute to greater competition on a level playing field. In the long term, it may also lead to changes in trade patterns, with more players choosing to establish warehousing and logistics operations within the EU. Today’s change thus marks the beginning of a more regulated trade system in which e-commerce flows must bear their own customs and inspection costs to a greater extent. For companies that rely on fast, large-scale, cross-border flows, the question is not whether this will affect their operations, but how quickly their business model can be adapted to a new customs reality.
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Shahab Wahdatehagh is Vice President of Global Trade Intelligence for EMEA/AP at Descartes.
