ISTANBUL

The European Council announced Thursday that it will eliminate the current €150 ($174) customs duty exemption for online shopping imports effective in 2028, meaning all imported goods will be subject to customs duty regardless of value.

“I am very pleased that we have reached an agreement on eliminating the €150 customs threshold," Danish Minister for Economic Affairs Stephanie Lose said in a press release.

"We ensure that duties are paid from the first euro, creating a level playing field for European businesses and limiting the influx of low-cost goods," she added.

As a long-term measure, European Union finance ministers agreed to abolish a rule allowing goods worth under €150 to enter the EU without customs duties being paid, the council recalled.

It added that with this change, relevant customs duties will apply to all goods entering the EU, bringing the system into line with existing rules for value-added tax on imported goods.

"The new rule will start applying once the EU customs data hub, the proposed EU central platform for interacting with customs and strengthening controls, is up and running -- currently expected in 2028," it noted.

The council also said that as a result of the current rule, estimates show that up to 65% of small parcels entering the EU are undervalued to avoid customs duties on imports.

"Aside from its effect on the competitiveness of EU companies, the threshold has also raised environmental concerns, given the incentive for non-EU companies to split shipments into individual parcels when sending goods into the Union.

"According to the (European) Commission, 91% of all e-commerce shipments valued under €150 came from China in 2024," it added.