(Yicai) Feb. 27 -- The Council of the European Union has approved new import duty rules abolishing the long-standing tax exemption for parcels valued below EUR150 (USD177), a move that experts say will fundamentally reshape the cost structure of Chinese cross-border e-commerce exporters.

The new rules, approved on Feb. 11, will impose an interim flat-rate duty of EUR3 (USD3.50) on each category of goods, identified by tariff sub-headings, contained in parcels valued under EUR150 and sent directly to buyers.

The measure will take effect on July 1 and remain in force until July 1, 2028, and may be extended if needed. Once the EU’s new customs data hub becomes operational, the interim levy will be replaced by standard customs tariffs.

The change signals the end of the “volume-driven era” for low-margin e-commerce exports, Zhu Qiuyuan, a law professor at Shanghai Customs College, told Yicai. The cost structure of Chinese cross-border e-commerce will face a complete reset, said Zhu, who is also vice president of the Customs Law Research Association of the Shanghai Law Society.

The EU imported 4.6 billion e-commerce parcels valued below EUR150 in 2024, with 91 percent originating from China, according to data from the European Parliament. Average daily volume reached 12 million parcels, nearly tripling from 2023 and more than tripling from 2022.

Under the EU’s plan, it will end the EUR150 customs duty exemption threshold from July 1, 2028, imposing unified tariffs and value-added taxes on all imported goods. It will also introduce a simplified “Duty Buckets” classification system, dividing products into five tax tiers of 0 percent, 5 percent, 8 percent, 12 percent, and 17 percent to further standardize customs administration for cross-border e-commerce.

Zhu added that a customs handling fee for e-commerce parcels will take effect this November. The fee will be independent of the EUR3 levy, with specific standards and the final implementation date yet to be confirmed.

Beyond the EU, the United Kingdom announced in its autumn budget last year that it will end the GBP135 (USD182) customs duty relief, with the current exemption set to be withdrawn by March 2029 at the latest.

The moves by the EU and UK underscore a clear global trend toward reducing or scrapping low-value import tax exemptions, Zhu said, urging cross-border e-commerce firms and their logistics partners to closely monitor policy developments.

Zhu also suggested that small and mid-sized sellers use professional third-party service providers or jointly hire customs consultants in Europe to share costs and achieve compliance. At the same time, sellers should gradually strengthen their own compliance awareness and capabilities, he added. 

As tax breaks for small parcels get phased out, timely adjustments to pricing, logistics, and product selection strategies, as well as a shift toward higher value-added and compliant operations, will be critical to maintaining a foothold in the European market, Zhu said.

Editor: Emmi Laine