EU customs reset: What the end of de minimis means for logistics

The European Union will abolish the long-standing €150 customs duty exemption on low-value imports from 1 July 2026, replacing it with a flat €3 duty per item line for qualifying B2C cross-border sales. The measure forms part of a broader transition towards a data-driven customs framework expected by 2028.

For logistics providers, freight forwarders, marketplaces and cross-border retailers, the change represents a structural shift in how low-value shipments are declared, processed and delivered across the EU.

Based on a recent webinar by UPS, the decision follows concerns raised by EU finance ministers in December 2025 over undervaluation, duty evasion and uneven competition between EU and non-EU sellers. The reform also addresses product safety risks, fraud and the environmental impact of high-volume low-value shipments, positioning customs as a regulatory tool rather than purely a revenue mechanism.

From July 2026, all imports below €150 will be subject to duty. A flat €3 charge will apply per item line in qualifying B2C shipments, significantly changing how low-value consignments are processed. Item-level customs declarations will become mandatory, replacing consolidated approaches that previously enabled faster clearance. Additional product data requirements will also apply, including merchant and manufacturer identifiers, while non-IOSS (Import One-Stop Shop) shipments will need to clear customs in the destination country rather than at the first point of entry. The reform also introduces cost implications for returns, as duties will not be automatically refundable.

During the recent UPS webinar, Emanuele Frezza, EU Affairs Senior Manager at UPS, highlighted that the new customs rules will apply specifically to goods entering the EU from outside the bloc, while shipments moving within the EU will not be affected. This distinction is important for logistics network planning and compliance strategies.

Operationally, the reform increases both the volume and complexity of customs processing. Logistics providers will need to manage higher declaration volumes with detailed item-level data, while ensuring greater accuracy in product classification and documentation. The webinar also highlighted that errors in product descriptions, HS codes or identifiers may result in delays or clearance issues, making data quality a critical requirement rather than a back-office function.

The changes also have direct implications for network design. The traditional model of clearing shipments at a central EU hub and distributing them internally becomes less effective for non-IOSS flows. Instead, shipments must align with destination-country clearance requirements, increasing routing complexity and requiring more precise planning across line-haul and last-mile operations.

Commercial models are also expected to evolve. Duties are likely to be billed to shippers or platforms rather than end consumers, requiring updates to invoicing systems, contractual agreements and customer communication processes. The €3 per item structure further adds complexity to multi-item shipments, affecting pricing strategies and cost allocation.

The impact is expected to be most significant for e-commerce operators that rely on low-value, high-volume cross-border shipments. The removal of the duty-free threshold increases landed costs, which may affect pricing, margins and product assortment decisions. IOSS-compliant shipments retain a relative advantage by allowing clearance at the first point of entry, while non-IOSS shipments face more fragmented and potentially slower processing.

At its core, the reform introduces a stronger dependence on structured product data. Each item will require multiple identifiers, including merchant and manufacturer details and, where available, standardised product codes such as GTIN, EAN or UPC. This increases the importance of accurate product master data across supply chains. GTIN stands for Global Trade Item Number, while EAN stands for European Article Number (now also called International Article Number), and UPC stands for Universal Product Code.

What logistics players say
Industry stakeholders broadly agree that the removal of the €150 de minimis threshold will reshape cross-border e-commerce flows.

Kathy Liu, VP, Global Sales & Marketing at Dimerco Express Group, said, “The proposed EU de minimis reforms may create a structural shift for cross-border e-commerce flows, particularly for high-volume, low-value shipments that have relied on the de minimis. In the short term, we expect some front-loading of shipments ahead of implementation. Over the longer term, supply chains are likely to adapt toward bonded warehousing and regional distribution models within Europe. This will not eliminate demand, but it will rebalance it, with growth in direct air parcel volumes likely to get moderate.”

From an airport infrastructure perspective, Stephan Horn, Senior Manager Strategy & Business Development at Fraport AG, noted, “We anticipate that upcoming EU de minimis regulatory changes will temporarily slow overall market growth in this segment. However, e-commerce will remain a resilient and key growth driver in the air cargo sector. Frankfurt Airport will continue to adapt infrastructure and processes to support efficient e-commerce flows, even as regulatory conditions evolve.”

DHL Aviation said the changes will introduce additional complexity and cost for cross-border e-commerce, particularly for low-value shipments, but demand is expected to remain robust over the long term as shippers adapt. The company added that higher duties and customs fees will reduce the attractiveness of ultra-low-cost imports, with demand likely to shift towards consolidated shipping, EU warehousing and pre-stocked inventory.

Jukka Hämäläinen, Sales Director Asia at Finnair Cargo, said, “EU de minimis changes may moderate growth in very low-value e-commerce shipments, but are unlikely to materially reduce overall China–Europe air cargo demand. E-commerce is expected to adjust through consolidation and revised fulfilment models, rather than shifting away from air freight.”

James Gilliard, Vice President Cargo Sales Europe at Chapman Freeborn, added, “While regulatory changes such as EU de minimis adjustments may have an impact, cost remains the dominant factor shaping demand on the China–Europe corridor.”

Mazen Zaher, Founder of Sama Airleasing, said the reforms “will undoubtedly reshape cross border e-commerce flows on the China–Europe route.” He noted that cross-border e-commerce from China accounts for a significant share of freighter capacity, with 4.6 billion small parcels imported into the EU in 2024. The €3 flat-rate tax per item, along with additional processing costs, is expected to challenge the low-cost shipping model.

Zaher pointed to early signs of disruption, citing France’s parcel tax introduced in March 2026, which led to a 92% drop in customs declarations for small parcels at Paris Charles de Gaulle and the loss of around 50 freighter flights in the first week. However, volumes shifted to alternative hubs such as Liège, Amsterdam and Frankfurt. Over time, he said, any broader decline in e-commerce volumes could free up freighter capacity, which may be redeployed towards high-growth sectors such as AI infrastructure and high-tech cargo, while older, less fuel-efficient aircraft may exit the market.

The shift is likely to favour larger operators with established customs infrastructure and strong data capabilities, while smaller merchants and simplified import models may face higher compliance costs and operational challenges. At the same time, the removal of the €150 exemption reduces the cost advantage previously held by non-EU sellers, potentially rebalancing competition within the EU market.

For logistics companies, the immediate priority is to review low-value shipment flows, strengthen data quality, and adapt routing and clearance strategies in line with the new requirements. IT systems and commercial agreements will also need to be updated to reflect the changes in duty structure and compliance obligations.

Ultimately, the reform marks a broader transition towards a customs system driven by data, product-level visibility and destination-based processing. For the logistics sector, this represents a fundamental shift in operating models, where compliance and data accuracy become central to maintaining efficiency in cross-border trade.