EU Starts Charging Duty on Low-Value Imports

The European Union on July 1 began charging a temporary 3-euro ($3.40) customs duty on low-value imports from outside the bloc, saying it will close a loophole that made it easier for unsafe products to enter the EU market.The charge applies to each item in a shipment valued at 150 euros ($170) or less that is purchased through distance sales, including online shopping from sellers outside the EU, such as Chinese giants Shein, Temu, and AliExpress.The customs duty replaces a long-standing exemption that allowed goods worth up to 150 euros ($170) to enter the EU without customs duties and will stay in place until July 1, 2028, when the EU Customs Data Hub is expected to begin operating.The duty is charged to the importer or seller rather than directly to consumers, although businesses are likely to pass on the cost by raising prices.European Commission President Ursula von der Leyen said in a July 1 post on X that the new customs rules would help restore fair market protections.“30 million Europeans work in retail; it’s our largest private-sector employer. And the surge in low-value online imports has put our retailers at an unfair disadvantage,” she said. “Too many of these products also fail to meet EU safety standards, putting consumers at risk. Today’s change is about restoring fairness for European businesses and better protecting our consumers.”According to the Commission’s guidance published on June 8, nearly 5.9 billion low-value products entered the EU in 2025 without paying customs duties because of the exemption.EuroCommerce, which represents Europe’s retail and wholesale sector, welcomed the change in a July 1 statement, calling it “a positive step for fairer trade in Europe.”The group also called it “an important step towards creating a more level playing field for retailers and wholesalers across Europe.”EuroCommerce said more action was needed, calling for stronger enforcement of consumer protection rules and product compliance.Preparing BusinessesUPS has advised businesses shipping low-value goods to the EU to review their supply chains.“Businesses with high return volumes, such as fashion, footwear and electronic retailers, may need to review their return policies and checkout processes ahead of implementation,” the company said.The European Commission said businesses must provide product identifiers for imported goods starting Nov. 1, 2026. The codes are meant to help customs authorities trace products and spot unsafe goods more quickly.FedEx has urged firms to begin using the identifiers before the deadline to help avoid customs delays.The EU is also planning a separate Union handling fee to cover customs processing costs, with the measure expected to take effect in November 2026.Product Safety ConcernsThe Commission said inspections carried out across the EU during 2025 found widespread problems with imported products sold online.Authorities said more than 60 percent of inspected cosmetics, personal protective equipment, food supplements, toys, and electronics failed to meet EU standards.These products lacked proper labeling, contained prohibited ingredients, or were missing required safety documentation.The Commission said those findings showed that businesses following EU rules faced unfair competition from sellers importing products that did not meet the same standards.“By introducing a small duty and stronger product traceability, we are closing loopholes that allowed unsafe and non-compliant goods to enter our market too easily,” said EU Commissioner Maros Sefcovic in a statement.Outside the EU, the UK is also considering changes to its rules governing low-value imports.The UK government announced in November 2025 that it plans to end the 135-pound ($178) customs duty relief by March 2029 at the latest.A public consultation on how the change should be introduced closed on March 6, 2026, and the Treasury has not yet published its response.