One Month After EU's Removal of Low-Value Parcel Duty Exemption, Sellers Actively Respond
It has been a month since the EU abolished the duty exemption policy for imports of parcels valued below 150 euros. This policy has raised costs for direct shipping of small packages and accelerated industry reshuffling. Sellers are responding by establishing overseas warehouses, transitioning to premium models, and diversifying market layouts to combat profit pressure.
What are the key facts?
- 1EU abolition of duty exemption for parcels under 150 euros
- 2Temporary fixed tax of 3 euros per parcel
- 3Transition period until June 30, 2028
What happened?
Beginning July 1, the EU imposed a temporary fixed tax of 3 euros on all low-value e-commerce parcels valued under 150 euros. Data shows that previously 91% of such parcels originated from China. This has put pressure on the low-price direct shipping model, making overseas warehouse stocking a mainstream response strategy.
What does this mean for cross-border sellers?
Direct shipping sellers need to assess their profit margins in Europe and are advised to accelerate overseas warehouse setups or enhance product value to adapt to the higher-cost compliance environment.