The European Commission plans to abolish the duty exemption for small parcels in cross-border online trade. Parcels with a value of less than 150 euros are currently exempt from paying customs duties. However, the Commission plans to remove this exemption limit and instead impose tariffs on all packages.
The European Commission justifies the abolition of the duty exemption for small packages with the aim of ensuring fair competition and fairer trading conditions. Due to the increase in cross-border online trade, EU member states are currently losing significant revenue from uncollected tariffs on low-value goods. The planned measure is intended to prevent these tax losses and create a level playing field for companies in the EU area.
However, the impact of the proposed change is disputed. Proponents argue that removing the small parcel duty-free regime would lead to fairer taxation and generate additional revenue for EU member states. Opponents, on the other hand, fear negative effects on consumers and cross-border online trade. They argue that higher costs from tariff collection could lead to a drop in orders from abroad.
The plans of the European Commission have not yet been finally decided. The proposal has to be discussed and approved by the Member States and the European Parliament. There is a possibility that there will be further adjustments and negotiations to mitigate the impact on consumers and online commerce.
