The EU has scrapped the duty-free treatment for small parcels under €150. For parcels shipped to the EU, here is how duty is now calculated and how clearance works.
What Changed in the Policy
Starting July 1, 2025, the EU removed the duty-free treatment for low-value parcels under €150 originating outside the EU, and now levies duty by product category.
That month, parcel volume to the EU fell 31% year on year.
Who Pays and How It Is Calculated
Import duty and VAT are borne by the importer. In cross-border e-commerce, this is usually handled by the platform or the recipient.
Duty is calculated at the rate applicable to the product category (HS code).
VAT is levied under the rules of the destination member state.
Which Parcel Route Fits Better
| Method | Characteristics |
|---|---|
| Postal Parcel | Single-piece direct shipping, processed per shipment, good for trial orders |
| Commercial Express | Fast transit, full clearance documentation required |
| Overseas Warehouse / First Leg Stocking | Bulk entry, more controllable per-unit cost |
With the exemption gone, per-piece parcel costs rise, and bulk stocking is usually more cost-effective.
Where Platform and Seller Responsibility Divides
Some platforms withhold and remit VAT on EU orders. Sellers need to confirm whether they are covered.
Covered portions are declared by the platform; uncovered portions must be arranged by the seller.
When the boundary of responsibility is unclear, double payment or missed payment is most likely.
How to Communicate with Customers
Notify customers in advance of possible duty and VAT to reduce refusals by recipients.
State how taxes and fees are borne on the product page and in customer service scripts.
Choosing a logistics solution that supports tax remittance or DDP can lower the refusal rate.
What to Watch in Declaration
Declare value and product name truthfully. Under-declaration, if caught, leads to cargo detention and fines.
HS codes must be accurate, as they directly affect the applicable rate.
Recipient information must be complete to facilitate clearance notices and tax payment.
How to Plan Transit Time and Cost
Clearance queues are getting longer, so build in more lead time before shipping.
Factor duty and VAT into the selling price, not just freight.
If using platform withholding and remittance, confirm the platform rules and your own boundary of responsibility.
What It Means for Chinese Sellers
Chinese sellers generally do not declare directly to EU customs, but must provide accurate cargo and value data.
Inaccurate data stalls clearance and raises the risk of returns and negative reviews.
For those stocking EU overseas warehouses, clearance is done in bulk, so prepare documents by batch.
The Bottom Line on Compliant Declaration
Do not misdeclare product names, under-declare value, or split orders to evade regulation.
Accurate HS codes directly affect the duty rate and the probability of Customs Exam.
Compliance is a long-term cost; violation is a short-term saving with a long-term price.
EU-related measures and applicable rules continue to be adjusted. Specifics are subject to the latest official announcements of the EU and its member state customs authorities.
