What are low-value package duties and why is the EU implementing them?

Low-value package duties are tariffs applied to parcels below a certain value threshold (historically exempt from import duties under 'de minimis' rules). The EU is implementing these to create tax parity between e-commerce sellers within the EU and those importing goods from outside, addressing the competitive advantage international sellers had through duty-free treatment. This aligns with OECD initiatives to ensure VAT/duties are collected on all cross-border transactions.

Why are logistics giants pushing for a phase-in rather than immediate implementation?

Logistics providers argue that sudden implementation would overwhelm customs infrastructure, require rapid technology investments in duty calculation and tracking systems, and create operational delays. A phased approach allows time to upgrade customs automation, train staff, coordinate with customs authorities, and adjust pricing and operational models without severe disruption to service levels.

How will this impact cross-border e-commerce and parcel delivery costs?

Implementation will increase costs for international parcels entering the EU, as carriers must calculate, collect, and remit duties. These costs may be passed to consumers or absorbed by sellers, potentially reducing cross-border e-commerce volume. Last-mile delivery may become more complex if duty collection occurs at parcel level rather than at border, creating additional touchpoints.

What should supply chain teams do to prepare?

Begin by understanding your current EU import volume and value distribution. Model scenarios for different phase-in timelines and duty rates. Assess customs clearance infrastructure capacity at key entry points. Invest in customs automation software and train compliance teams. Consider warehousing strategies in the EU to reduce cross-border movements. Engage with freight forwarders and customs brokers to understand their capability roadmaps.

What is the timeline for implementation?

The article does not specify an exact implementation date, indicating this is still under negotiation. The industry advocacy for a phase-in suggests the EU has proposed or considered a timeline that logistics providers view as too aggressive. Monitor EU customs and tax authority announcements for official phase-in schedules.

Trade Policy & Tariffs

High Impact

Logistics Giants Push EU to Gradual Low-Value Package Duty Implementation

May 28, 2026

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The signal

Logistics industry leaders are advocating for a phased implementation approach to the European Union's new low-value package duty regulations, signaling concerns about operational disruption and compliance complexity. The current proposal threatens to fundamentally alter how cross-border parcels are processed, creating potential bottlenecks at customs and increased administrative overhead for logistics providers. This regulatory shift reflects the EU's intent to level the playing field between domestic and international e-commerce sellers, but the industry argues that abrupt enforcement would strain existing infrastructure and create significant compliance challenges.

For supply chain professionals, this development represents a critical inflection point in European parcel operations. The implementation timeline will directly affect cost structures, customs clearance procedures, and last-mile delivery economics. Companies operating in the EU must begin scenario planning immediately—whether focused on warehousing strategies, pricing adjustments, or customs automation investments.

A phased approach would provide breathing room for technology investments and process redesign, while sudden implementation could force rushed and suboptimal solutions. The outcome of this advocacy effort will likely shape e-commerce competitiveness and logistics profitability across Europe for years. Supply chain leaders should monitor regulatory announcements closely and begin stakeholder engagement with customs authorities and freight forwarders to understand potential phase-in timelines and their operational implications.

#eu-customs-duty

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#cross-border-ecommerce

Frequently Asked Questions

What This Means for Your Supply Chain

Simulation Suggestion

this month

What if low-value package duties are implemented in 6 months without phase-in?

Model the impact of immediate 100% enforcement of EU low-value package duties on all cross-border parcels entering Europe within 6 months. Apply duty calculations to current import volumes, recalculate landed costs, assess customs clearance capacity constraints, and estimate service level delays from additional customs processing steps.

Run this scenario

Simulation Suggestion

this month

What if customs clearance delays increase by 3-5 days during phase-in?

Simulate a scenario where customs processing time increases by 3-5 business days per parcel due to duty calculations and clearance procedures during the phase-in period. Model impact on delivery SLAs, inventory positioning in EU warehouses, and increased logistics costs from extended in-transit inventory.

Run this scenario

Simulation Suggestion

strategic

What if a 15% phase-in occurs in Year 1, scaling to 100% by Year 3?

Model a gradual phase-in where duties apply to 15% of low-value parcels in Year 1, 50% in Year 2, and 100% in Year 3. Calculate cumulative cost impacts, identify optimal timing for customs automation investments, and assess competitive positioning changes as international sellers adjust pricing strategies across the phase-in period.

Run this scenario

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