The European Union is preparing to abolish its long-standing de minimis rule for low-value imports, a change that could significantly alter its international e-commerce patterns.

At present, items valued below €150 can enter the EU without incurring customs duties. That waiver, however, is set to disappear after an EU vote to scrap the threshold. The full removal will coincide with the launch of the bloc’s new customs data platform, a process expected to take up to three years.

Until that system is in place, EU ministers have pledged to introduce an interim solution to ensure duties are collected on low value parcels – potentially starting as soon as next year. The accelerated timeline reflects growing alarm over the scale of fraudulent under-pricing on incoming shipments; officials estimate that roughly two-thirds of parcels are deliberately undervalued to sidestep taxes.

Data indicates that China accounts for 91% of goods currently entering the EU under the de minimis regime, driven largely by rapidly expanding online marketplaces whose business models rely on cheap, direct-to-consumer deliveries.

The EU’s move follows a similar shift in the United States. Earlier this year, Washington eliminated its own $800 de minimis threshold, first applying the change to Chinese imports in May before expanding it to all countries in August.

The United Kingdom may follow suit. Its £135 duty-free limit is under review, and the chancellor may choose to scale it back – or scrap it entirely – in the upcoming budget.