EU to end duty-free imports in 2026 amid surge of cheap goods from China

EU finance ministers have agreed to end the customs duty exemption for parcels entering Europe from outside the bloc in 2026, two years earlier than initially planned. The current threshold of 150 euros will be eliminated, meaning even low-value parcels will be taxed. The move aims to stem the influx of cheap goods flooding the EU, particularly from China.

Caretaker Finance Minister Eelco Heinen welcomed the decision, noting that millions of parcels arrive in the Netherlands each year. “We can’t check them all, and frankly, some of it is junk,” he said. “We need to regain control.”

Since many shipments enter the EU via the Netherlands, the new customs duties will generate additional revenue. “That income is needed to strengthen customs operations so they can handle the growing volume of parcels,” Heinen added.

Dutch MEP Dirk Gotink (NSC), the European Parliament’s chief negotiator on customs reform, described the decision as a key step toward reducing unfair competition and improving oversight of low-cost imports.“We’ve already received more parcels than in all of 2024, with Black Friday and Christmas still to come,” he said. “Not one of these parcels under 150 euros currently pays tax.”

The current duty exemption for goods valued under 150 euros (known as Low Value Consignment Relief) has been widely abused. Major platforms often use a practice called "under-declaration" where they falsely report the value of goods as being below the threshold to avoid both customs duties and the standard Value Added Tax (VAT), thus gaining a significant cost advantage.