The

European Council pointed out that due to the "urgency of the situation", the EU promised to levy duties on duty-free small packages as soon as possible in 2026 and continue to implement them until the EU customs data hub is officially operational in 2028. Solutions will continue to be developed and refined in the coming weeks. As a long-term measure, EU finance ministers have unanimously agreed to abolish the current "exemption from customs duties on goods under 150 euros. This means that all goods entering the EU in the future, regardless of value, will be subject to the corresponding import duties.

01 Policy adjustment background

Tariff Avoidance and the Problem of Low Value

The European Council explained that the current tax exemption rules had led to a large number of parcels evading customs duties by underreporting their value. About 65% of inbound small parcels have such behaviors, according to statistics.

In addition, in order to avoid tariffs, non-EU companies often split their goods into multiple small packages and ship them into the EU, which not only intensifies the pressure on customs supervision, but also causes environmental problems such as packaging waste and transportation emissions.

Chinese e-commerce dominates EU packet market

In 2023, up to 91% of EU e-commerce packages worth less than 150 euros will come from China, according to

European Commission data.

this ratio highlights the important position of Chinese e-commerce in the EU market and has become one of the focuses of this policy adjustment.

According to Eurostat data, China will continue to maintain its position as the EU's largest import source in 2024, accounting for 21.3 per cent of total imports outside the EU, and will be the EU's third largest export market, accounting for 8.3 per cent. The tax policy adjustment is expected to have a significant impact on cross-border e-commerce trade between China and Europe.

02 Policy Impact Analysis of

Cross-border Logistics Cost Structure Changes

for the cross-border logistics industry, this policy means a cost structure and operating model of major adjustments. A large number of businesses that previously relied on small tax exemptions will face a direct impact.

Customs clearance process complexity

: all packages, regardless of value, need to complete a complete customs clearance process, which will significantly increase logistics links and time.

Cost upward pressure of

: the labor cost and time cost of tariff accounting and payment will inevitably be transferred to logistics cost.

Chain Reaction of

E-commerce Platform and Sellers

Pricing strategy reshaping

: The pricing strategy for goods that originally relied on tax exemptions below € 150 needs to be fully adjusted to cover the newly incurred tariff costs.

Supply chain optimization needs

: The decentralized shipping model for large quantities and small packages may gradually shift to a centralized shipping and overseas warehouse stocking model.

Compliance requirements increase in

: arbitrary underreporting of the value of goods will be strictly controlled, and compliance declaration will become an inevitable requirement.

03 Countermeasures

Short-term response measures

Customs clearance capacity building

: Logistics companies should immediately start to expand the EU customs clearance team and establish a network of local customs clearance partners.

System upgrade preparation

: update IT system to ensure that it can handle tariff calculation and declaration of a large number of small packages.

Customer communication guidance

: take the initiative to inform customers of policy changes and discuss new logistics solutions together.

Medium-and long-term strategic adjustment

Diversified layout of

: Consider setting up storage facilities in the EU and changing to the mainstream B2B2C model.

Service value enhancement of

: Integrate professional tariff optimization services into the product system to provide customers with compliant and cost-controllable solutions.

Partner Screening

: Establish strategic cooperation with local European logistics providers with strong customs clearance capabilities and tax compliance experience.

04 Industry Outlook

the

EU reform is not an isolated event, but part of a global tightening of customs controls. The United States, Britain, Australia and other countries have begun similar policy adjustments.

for cross-border logistics enterprises, this is both a challenge and an opportunity. Enterprises that can quickly adapt to the new environment and provide compliance and efficient solutions will occupy an advantageous position in the new round of industry reshuffle.

In response to the EU's plan to levy a handling fee for small parcels, the Chinese Ministry of Foreign Affairs has previously stated that China believes that creating an open and inclusive trade environment is in the common interests of all parties, and hopes that the European side will abide by its commitment to openness and provide Chinese companies with fairness, transparency, and A non-discriminatory business environment creates favorable conditions for China-EU economic and trade cooperation.