EU Accelerates Abolition of €150 Duty-Free Parcel Limit, Targeting 2026 Implementation

The Economic and Financial Affairs Council (Ecofin) delivered a landmark decision on November 13, 2025, signaling a major overhaul of European trade policy. Ministers of Economy from across the European Union voted to significantly fast-track the removal of customs exemptions that currently benefit cross-border parcels valued under €150 and originating from countries outside the EU bloc. This regulatory overhaul is now scheduled for implementation in 2026. This accelerated timeline brings the change forward by two years, contrasting sharply with the initial schedule reported by the Financial Times. Previously, the European Commission (EC) had proposed abolishing the duty-free threshold and simultaneously introducing a modest €2 per parcel levy starting only in mid-2028. This decisive shift in strategy received robust political endorsement, particularly from influential member states such as Italy and France.

The primary motivation driving this legislative initiative is the urgent need to mitigate the intense competitive strain placed upon the EU’s internal manufacturing and production sectors. This pressure is largely generated by the massive, increasing flow of ultra-low-cost merchandise distributed via non-European e-commerce platforms, with the vast majority of these goods flowing from the People's Republic of China (PRC). The scale of this import challenge is immense. Data compiled by the European Commission reveals that approximately 4.6 billion low-value parcels were imported into the European Union throughout 2024 alone. Crucially, more than 90% of this staggering volume originated from Chinese suppliers.

Italian leadership proved pivotal in pushing this agenda forward. Italy’s Minister of Economy, Giancarlo Giorgetti, strongly advocated for the measure, underscoring the critical importance of neutralizing what he termed "unfair competition." He specifically pointed out the detrimental impact on the high-end fashion sector. This regulatory action is intrinsically linked to wider pan-European endeavors aimed at countering the disruptive "ultra-fast fashion" model. This business model capitalizes on selling exceptionally cheap products through dominant Asian e-commerce platforms operating within the European market, such as Shein and Temu.

The response from the Italian manufacturing base was overwhelmingly positive. Luca Sburlati, President of Confindustria Moda, publicly endorsed the accelerated timeline, characterizing the move as an indispensable condition for ensuring the enduring sustainability of the textile and apparel industry across the Union. Complementing these customs measures, the Ministry of Enterprises and Made in Italy (MIMIT) has simultaneously launched parallel legislative efforts. MIMIT has initiated amendments to the Competition Law specifically designed to address platforms like Shein and Temu, notably by introducing requirements for extended producer responsibility.

Contextually, this domestic policy shift is interwoven with the European Union’s broader global trade objectives. European Commissioner for Trade Maroš Šefčovič had proactively called for the swift introduction of the parcel processing fee. His public appeal came just ten days before the crucial G20 summit in South Africa, where high-level trade discussions were anticipated, including a planned meeting with PRC Chairman Xi Jinping. The European Commission views the implementation of this new fee structure as a vital step toward reinforcing the European Union's economic leverage and strategic position amidst the rapidly evolving landscape of global commerce.