EU to Remove De Minimis on Low-Value Shipments from July 2026

<h2>EU Eliminates €150 Duty-Free Threshold for Imports</h2> <p>Effective July 1, 2026, the European Union will eliminate the long-standing de minimis rule, which allowed shipments valued under €150 to enter the EU duty-free. This significant policy change will affect United States brands engaged in direct-to-consumer (D2C) e-commerce within the EU, particularly those not currently utilizing fulfillment centers within mainland Europe. The removal means that all goods imported into the EU, regardless of value below €150, will be subject to customs duties.</p> <h2>Reasons for the Change and Impact Assessment</h2> <p>The European Parliament decided to abolish the de minimis threshold to address issues with customs handling volumes and to create a fairer competitive environment for EU-based retailers. Previously, while goods under €150 were exempt from customs duty, they were still subject to VAT and customs declarations. Under the new regulation, a fixed duty of €3 will apply to goods valued at less than €150, calculated based on their tariff classification (CN codes). Orders containing multiple items with different CN codes could incur multiple €3 charges, potentially increasing shipping costs substantially for high-volume sellers.</p> <h2>Logistics Restructuring Advised</h2> <p>International Logistics Group (ILG) advises US e-commerce businesses to proactively restructure their EU logistics operations before the July 2026 deadline. For companies that have historically served EU customers from outside the bloc, such as the UK, relocating inventory to warehouses within the EU is recommended. ILG highlights its fulfillment facility in Wroclaw, Poland, as a strategic location to mitigate import challenges and reduce friction for D2C sales into the EU.</p> <h2>Strategic Location for Efficient Fulfillment</h2> <p>ILG established its EU-based storage and fulfillment facility in Wroclaw, Poland, recognizing its advantageous position. The location offers direct and rapid transport links to major population centers across mainland Europe, including proximity to Germany, the EU's largest e-commerce market. This setup enables ILG to provide a cost-effective and efficient fulfillment solution for American businesses aiming to optimize their supply chains and enhance customer experiences in the EU.</p>