Ecommerce / news
EU Ends Duty-Free E-Commerce Imports, Shifting Customs Liability to Merchants
As of July 1, all parcels entering the European Union are subject to customs duties, ending the de minimis exemption for low-value goods. Merchants now bear the legal responsibility for duty payments, impacting cross-border e-commerce operations.
The European Union has eliminated its de minimis threshold for imported e-commerce parcels, effective July 1. Every package entering the bloc now incurs customs duties, regardless of value, marking the end of an era that allowed low-cost goods to flow duty-free.
Under the new rules, shipments valued under €150 are subject to a €3 charge per line item. Critically, the merchant is now the default legal customs debtor, liable for duty in addition to VAT—shifting the financial burden from customers or carriers to the seller.
The change upends a system that processed massive volumes: in 2024, the EU cleared 4.6 billion parcels under the €150 threshold, all of which previously bypassed full customs processing. Now each item must clear customs individually.
The EU is not alone in tightening cross-border trade rules. The United States ended de minimis for Chinese imports in May 2025, extended the removal to all countries in August 2025, and will fully expire the exemption on July 1, 2027. The UK maintains its £135 threshold through at least 2026 but has signaled that sellers and marketplaces will become customs debtors, with full removal expected by March 2029.
For brands and retailers, the new framework introduces pressure on margins, increased liability, and potential impacts on conversion rates as cross-border commerce adapts to a post-de minimis landscape.