What exactly changes on July 1 regarding the EU de minimis exemption?

On July 1, the EU terminates its de minimis exemption that previously allowed parcels valued at less than €150 to enter the bloc duty-free. Starting that date, all low-value imports, regardless of value below €150, will be subject to a flat customs duty. This eliminates a key pricing advantage that retailers and ecommerce sellers have relied on for years.

How does this impact returns and refunds for sellers?

The article identifies returns and tariff refunds as a 'real margin issue' under the new regime. Retailers must now establish processes to handle customs duty refunds when customers return low-value items, adding complexity and cost to reverse logistics. Without proper systems, retailers face additional margin pressure and potential revenue loss on returned goods.

Which retailers are most at risk from this policy change?

Retailers selling low-value items in high volume into the EU—particularly those in ecommerce, fashion, and accessories—face the greatest exposure. The flat customs duty structure disproportionately affects business models built on thin margins and rapid inventory turnover. Organizations that fail to update customs processes will experience 'even bigger margin pressures' according to the article.

What should retailers do to prepare before July 1?

Retailers should immediately audit and redesign their customs compliance workflows, return processes, and pricing strategies. This includes implementing automated customs declarations, establishing tariff refund protocols for returns, and potentially adjusting product pricing to account for new duty costs. Delay increases the risk of operational disruption and margin erosion.

Are there any exemptions or workarounds to the new de minimis rule?

The article does not mention specific exemptions or alternative pathways. Retailers should assume the rule applies broadly to all low-value parcels below €150 and plan accordingly. Professional customs guidance may reveal sector-specific considerations, but advance preparation of systems and processes is critical.

Trade Policy & Tariffs

High Impact

EU De Minimis Rule Change July 1: Retailers Face Duty Costs

Jun 23, 2026

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The signal

On July 1, 2024, the European Union will eliminate its de minimis exemption for low-value imports, a structural policy change that will subject all parcels valued below €150 to a flat customs duty. This represents a fundamental shift in how cross-border ecommerce transactions are processed and taxed, eliminating a long-standing exception that has shaped international retail logistics for years. For retailers and ecommerce sellers, this change creates significant operational and financial challenges.

Previously, parcels below the €150 threshold could enter the EU without triggering customs duties or value-added tax (VAT) collection processes. The elimination of this exemption means retailers must now implement robust customs declaration systems, manage tariff refund processes for returns, and absorb or pass through increased costs on low-value shipments. These margin pressures are particularly acute for high-volume, low-margin business models that dominate cross-border retail.

Supply chain teams face an immediate imperative to audit and redesign customs workflows, return processes, and pricing strategies before the July 1 deadline. Organizations that fail to adapt their systems risk compounding margin erosion through inefficient compliance processes, return handling delays, and potential customs penalties. Strategic priorities should include automating customs declarations, establishing clear return-refund protocols, and reassessing product pricing and sourcing strategies for EU-bound shipments.

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#de-minimis-exemption

#cross-border-ecommerce

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What This Means for Your Supply Chain

Simulation Suggestion

immediate

What if customs duty costs increase average low-value order costs by 12-15%?

Model the impact of a 12-15% cost increase on orders under €150 value shipped to the EU post-July 1. Assess how this affects product competitiveness, customer price sensitivity, and profit margins across different product categories and price points. Include scenarios where retailers absorb costs versus pass them to customers.

Run this scenario

Simulation Suggestion

this month

What if return processing delays increase by 2-3 weeks due to customs refund complexity?

Simulate extended return cycle times in the EU market assuming retailers struggle to implement tariff refund processes. Model how delays in returning customer refunds impact customer satisfaction scores, churn rates, and operational cost (warehousing, labor). Compare against best-in-class return operations.

Run this scenario

Simulation Suggestion

strategic

What if retailers shift sourcing from Asia to EU suppliers to avoid duty costs?

Model a strategic shift in sourcing strategy where retailers source more inventory from intra-EU suppliers to bypass the new low-value import duty structure. Assess trade-offs in unit costs, lead times, supplier concentration risk, and total landed cost versus continued Asian sourcing with duty absorption.

Run this scenario

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