European Parcel Duties Could Add €6 Billion a Year to EU Budget
Key Facts
European duties on low-value parcels could generate €6 billion a year for the EU budget between 2028 and 2034, according to a European Commission document seen by Reuters. The estimate comes as European policy has shifted from removing the customs exemption to imposing actual duties on these imports. The EU has charged a €3 duty since the start of July, and an additional €2 duty on cheap parcels is due to begin on November 1. The estimate counts duty revenue among the EU’s resources over seven years, but it is not realized revenue and does not describe a total amount imposed on consumers. The figures highlight the expected financial impact of reorganizing the flow of low-value parcels into the European market.
The scale of that flow is shown in Commission data cited by Reuters: the EU received 5.8 billion parcels worth less than €150 each in 2025. That was a 26% increase from 2024, pointing to a growing flow of shipments targeted by the duties. The €150 threshold was the previous customs exemption limit before it was abolished from July 1, 2026. The Commission estimates that the declared value of most low-value parcels was reduced to avoid customs duties. The Commission also linked the previous exemption to incentives to split shipments or lower their declared value, making the handling of these imports part of a reform of the EU customs system.
The burden on parcels is changing in two stages: a €3 duty that began at the start of July, followed by an additional €2 duty from November 1. Reuters said the new duty will raise the amount imposed on each individual item, after the July duty took effect. This means the duties now being applied concern low-value imports, rather than a general tax on non-European platforms. The timetable also separates the current duties from the financial estimate, which will begin to count toward EU resources in 2028. The Commission’s open guidance page did not specify the amount of a separate handling fee; Reuters’ estimate concerns European duty revenue on low-value parcels.
According to Commission estimates cited by Reuters, 90% of duties collected will go to EU coffers, compared with 10% for member states. This allocation differs from the current system, under which member states retain 25% of duties. The report said the estimated shares could change, making the expected distribution of revenue subject to review. The proposed arrangement reflects a larger share directed to the EU budget compared with what member states currently retain. These shares link the expansion of the targeted parcel base with how revenue is divided between EU institutions and member states.
E-commerce companies have pointed to the impact of the duties on their businesses and operating plans. The company that owns Temu said in August that the move would have a "significant impact" on parts of its business, without specifying the scale. Alibaba-owned AliExpress said it is increasing local warehousing in response to the duties. The company warned that the duties would hurt low-income households in Europe and could "exacerbate the cost-of-living crisis." The remarks put the possibility that some of the cost will be passed on to consumers at the center of the debate over the duties, without providing a quantitative estimate of that impact.
Shein’s response reflects another operational approach, as the company expands its warehousing space in Poland. It said it is focused on keeping prices "competitive" while offering faster and more convenient delivery. The approach combines an effort to control prices with faster delivery as additional duties take effect in November. Shein’s expansion of local warehousing and AliExpress’s increase in it point to steps platforms are taking to deal with the duties, while the companies have not specified how much they will absorb or what may be passed on to prices. The European financial estimate comes amid rapid growth in parcel volumes, with shipments worth less than €150 rising 26% in 2025.