On November 13, the European Council announced a major policy shift that will reshape the landscape of global cross-border e-commerce. The EU confirmed that it will take formal action to end the long-standing duty-free treatment for low-value parcels entering the European Union—a system that has fueled years of rapid growth for global e-commerce sellers but also triggered concerns about unfair competition, tax losses, and regulatory loopholes.

According to the Council, the urgency of the situation requires accelerated intervention. Member states have pledged to work toward implementing tariffs on duty-free small parcels as early as 2026, with full structural reforms expected once the EU’s unified Customs Data Hub becomes operational in 2028. The Council emphasized that technical and regulatory solutions will continue to be developed over the coming weeks, signaling that the policy framework is still evolving.

Currently, low-value parcels imported into the EU—especially those shipped from non-European e-commerce hubs—enjoy simplified customs procedures and tax exemptions, making them extremely cost-competitive. The sheer volume of such packages has skyrocketed in recent years, overwhelming customs authorities and creating a significant price advantage over local retailers and EU-based sellers. The forthcoming reform aims to close these gaps. Once tariffs are introduced, every parcel—no matter how small—will be required to undergo proper customs declaration, data validation, and risk screening.

The introduction of the EU Customs Data Hub in 2028 will mark the final phase of this transformation. The Hub will centralize customs information across all member states, enabling real-time data sharing, end-to-end traceability, and stricter oversight of low-value imports. This will effectively eliminate common practices such as undervaluation, false declarations, and fragmented customs processing.

For cross-border e-commerce sellers, logistics providers, and freight forwarders, this shift is far more than a tax change—it is a structural reset. Business models built on low-value, high-volume parcel shipments will face higher compliance costs, tighter data requirements, and potentially slower or more expensive delivery routes. Sellers targeting the EU market may need to rethink pricing structures, product strategies, and warehousing models, including the use of EU fulfillment centers or bulk import mechanisms.

This development also signals a broader trend: major economic blocs are moving toward tighter customs control, data transparency, and digitalized border management. For companies that act early—adjusting systems, planning routes, and preparing compliance—the transition may become an opportunity rather than a disruption.

HANYUE International will continue to monitor the EU’s tariff reform progress and provide real-time policy analysis, compliance guidance, and logistics solutions to help cross-border sellers stay competitive in this rapidly changing environment.