The European Union is moving toward eliminating its long-standing de minimis exemption for inexpensive imported goods, a policy shift that could reshape international online shopping across the bloc.

Currently, products worth less than €150 can be brought into the EU without paying customs duties. That rule will be phased out following an EU decision to end the threshold entirely. The change is scheduled to take effect once the EU’s new customs data system goes live – a rollout that may take up to three years.

In the meantime, EU officials intend to put a temporary mechanism in place to ensure duties are collected on small parcels, potentially as early as next year. The fast-tracked approach reflects rising concern about widespread under-declared values on imported packages. Authorities estimate that about two-thirds of low-value shipments are intentionally mispriced to avoid taxes.

Statistics show that China is the dominant source of goods using the current exemption, accounting for roughly 91% of qualifying imports. Much of this traffic stems from fast-growing online marketplaces built around low-cost, direct-to-consumer shipping.

The EU’s decision mirrors recent action in the United States, which removed its own $800 de minimis threshold earlier this year. The policy was first applied to Chinese products in May and later extended to all countries by August.

The United Kingdom is also weighing similar changes. Its duty-free limit of £135 is under review, and the chancellor may choose to reduce or abolish it entirely in the forthcoming budget.