End of Duty-Free Status for Small Shipments: What the New EU Duties Mean for Intellectual Property Rights Holders and Online Retailers

The EU has abolished duty-free status for shipments with a value of up to 150 euros sent directly from third countries to consumers in the EU. A flat-rate duty of 3 euros per product category has been in effect since July 1, 2026. Now, an additional EU processing fee of 2 euros per product category is expected to take effect on November 1, 2026. The customs reform thus shifts responsibility to platforms and sellers. In addition, a central EU customs data platform is being established, which will allow customs authorities to more effectively target suspicious shipments for inspection. This will also have a significant impact on the fight against product piracy. 

I. Background: Why did the EU have to act?

According to the European Commission, approximately 4.6 billion e-commerce packages, each valued at less than 150 euros, entered the EU in 2024, with 91% of those packages originating from China. Until now, such shipments fell under the so-called de minimis rule, which made them duty-free. However, this rule is now outdated and dates back to a time before the boom in online commerce. The rule was exploited to an extent never intended by the business models of platforms such as Temu, Shein, and AliExpress. Furthermore, the rule encouraged underreporting the value of goods or splitting orders into multiple packages. 

The European Council identified three core problems with this: 

• Unfair competition at the expense of EU companies, 
• Risks to consumers from dangerous or non-EU-compliant products, and 
• negative environmental impacts.

II. An Overview of the Measures 

It is important to clarify that both charges – customs duties and processing fees – apply per category of goods, not per package. 

What constitutes a separate category is determined by the tariff code – that is, the official classification of the goods in the customs tariff. A package containing toys, a wool coat, and shampoo includes three different categories of goods with three different tariff codes and therefore incurs a flat-rate customs duty of 9 euros and a processing fee of 6 euros, for a total of 15 euros in charges. However, multiple items of the same product count only once. For very similar products, a closer look is necessary, as the level of detail in the tariff code may be decisive.

Three women's suits made of wool, synthetic fiber, and silk have the same six-digit tariff number but different ten-digit tariff numbers. If you declare them using the simplified declaration for small shipments – which requires only the six-digit number – you pay only 5 euros once (3 euros in flat-rate customs duty + 2 euros in processing fees), according to the Commission's example; with the standard declaration using the ten-digit number, you must pay three times. There is no option to choose which method to use to save money. Different types of goods may not be grouped together (e.g., as “clothing”), and for certain types of goods, the standard declaration is mandatory. 

III. New Situation for Border Seizures 

A significant portion of the counterfeit goods seized in the EU originate from China and are increasingly entering the market in small shipments. Until now, customs authorities have been able to inspect this high-volume trade only on a random basis; while border seizures were already possible for small shipments, they were rarely enforced. For holders of trademarks, designs, and patents, however, border seizures are one of the most effective tools against product piracy. However, direct online sales from China via small shipments have made enforcement considerably more difficult in recent years. In 2024, approximately 112 million suspected counterfeit items with an estimated value of over 3.8 billion euros were seized at the EU’s external borders and within the internal market. 

For rights holders, three things in particular could now change: 

• More Targeted Inspections: In the future, import data will be consolidated in a central EU database. A new EU customs authority in Lille will analyze this data. This will allow suspicious shipments to be identified earlier and specifically singled out.
• Identifiable Parties Responsible: Platforms and retailers, as importers, will assume liability under customs law, even if they are based outside the EU. This gives rights holders a clearer idea of whom to hold accountable following a seizure. 
• More Frequent Seizures, Greater Need for Action: With stricter controls in place, customs is expected to detain suspicious goods more often. In each of these cases, the rights holder is notified and must quickly determine whether the goods are indeed counterfeit and should be destroyed. If customs acted without a prior request, the rights holder must submit one retroactively. 

It remains to be seen whether the new duties alone will lead to fewer counterfeits entering the EU. In any case, better data, clearer responsibilities, and more intensive inspections are likely to make the real difference.

IV. Practical Recommendations 

• Submit or update an application for border seizure: Existing applications requesting action by customs authorities should be reviewed to ensure that the listed intellectual property rights are complete and up to date. New applications should be filed for rights that were previously unprotected. 
• Provide Distinguishing Features: The effectiveness of customs inspections depends largely on the quality of the information provided by rights holders. Details regarding genuine products and known counterfeits, as well as typical distinguishing features, should be fully documented. 
• Establish internal procedures: Once goods have been detained, short deadlines apply, particularly if customs has taken action on its own initiative. Companies should therefore define in advance who is responsible for inspecting the goods and deciding on the next steps. 
• Adjust price information: Companies that pass on duties to consumers should include them in the total price, rather than displaying them only at “checkout” (Section 3 PAngV). Statements such as “duty-free” or “no duties under 150 euros” have been misleading and subject to cease-and-desist letters since July 1, 2026. 
• Clarify tariff classification and logistics: Use the correct customs tariff codes, as artificially grouping different goods together is not permitted. Coordinate the type of customs declaration and who bears the costs in writing with the platform and logistics service provider.