E-commerce retailers and logistics providers are scrambling to comply with new European Union customs rules and fees, effective Wednesday, aimed at addressing concerns over tariff fairness, undercutting domestic manufacturers, and product safety associated with a wave of low-value imports entering the bloc through parcel channels, according to FreightWaves.
EU Eliminates Duty Exemption
The European Council in February finalized legislation to eliminate the duty exemption for goods valued below €150 ($171) and require more shipping data, replicating the U.S. government’s decision a year ago to revoke duty-free privileges for small-dollar shipments, FreightWaves reported. The U.S. goal was to stop low-cost, subsidized and unethically-sourced Chinese imports from undercutting U.S. manufacturers and retailers, as well as drug smuggling. The higher cost of entry into the U.S. market pushed a huge amount of e-commerce traffic to Europe, contributing to the rise in demand authorities there are trying to manage.
Flat Fee Structure and Additional Costs
Each B2C parcel entering the EU will be subject to a flat 3 euro ($3.41) charge per product category (e.g. two T-shirts = one item) within a parcel. The EU is preparing to add a processing fee in November, estimated to be between 2 euros to 3 euros, to help pay for customs operations. A single order could incur fees of more than $10.25 if the goods aren’t identical and subject to different tariff classifications, according to logistics providers — forcing merchants to overhaul product classification systems and checkout pricing.
For most cross-border merchants, a $100 apparel order with three items under different classification codes shipping into the EU will carry roughly 20% in added duties and fees by November, international e-commerce services provider Flavorcloud said in a blog post. For a retailer shipping 10,000 such parcels per month, the difference between one and three declaration lines per shipment is $68,000 in monthly duty exposure, said Alison Layfield, director of product development at ePost Global, on the company’s website.
The flat duty remains in effect until July 1, 2028, when normal customs duties, based on each product’s classification, are expected to apply instead.
Volume Surge and Air Cargo Impact
In 2025, $5.8 billion in low-value parcels were imported in the EU, up from $4.6 billion in 2024 and a 314% increase since 2022. Most parcels are from China. Popular e-commerce exporters include fast fashion seller Shein, and marketplaces like Temu, JD.com and AliExpress.
Since the spring, online marketplaces have front-loaded shipments to clear the EU border under current rules, contributing to upward pressure on Asia-Europe air cargo rates from the Iran war that have already exceeded last year’s peak season highs, FreightWaves reported. A big question is whether higher shipping costs will change shopping behavior. Initial analysis of freighter activity from consulting firm Rotate shows freighter capacity from China and Hong Kong to Europe has fallen 19% in the past 48 hours.
Retailer Strategies and Adaptation
It’s unclear whether the elimination of de minimis will dampen e-commerce volumes in Europe. Demand for ultra-low cost parcel shipping is very price sensitive, but platforms learned how to adapt following the U.S. rule change last year. Large retailers and marketplaces are doing more local fulfillment instead of shipping individual parcels from origin after securing in-country warehouses and shipping goods to them in bulk through traditional air and ocean container channels.
Experts say retailers will have to reevaluate their pricing models. Brands with a high volume of orders with a low average value could experience the greatest impact and may decide that certain SKUs are not commercially viable to ship from outside the EU. But someone ordering $180 worth of apparel may be less deterred by an extra $10 fee.
| Key Benchmark | Value |
|---|---|
| EU de minimis threshold removed | €150 ($171) |
| Flat fee per product category | €3 ($3.41) |
| Expected processing fee (Nov.) | €2–€3 |
| Low-value parcel imports 2025 | $5.8 billion |
| Increase since 2022 | 314% |
| Freighter capacity China-Europe drop (48 hrs) | 19% |
Sources:
