Across the European Union (EU), the customs duty exemption for products worth up to €150 ordered online from non-EU countries will end on July 1.
According to a statement from the German Customs Administration, beginning July 1, shipments sent via distance sales from third countries to consumers in the EU with a value not exceeding €150 will be subject to a flat customs duty of €3 for each different product category contained in the package.
The EU said the measure aims to eliminate unfair competition created by the customs exemption in favor of sellers outside the bloc and to protect the internal market. In exceptional cases, the standard customs tariff rates will continue to apply.
Under the new regulation, a €3 customs duty will be charged for each different product category included in a parcel. For example, if a package contains only four pairs of socks, it will be treated as a single product category, and a €3 duty will apply. However, if the package contains socks, a toy, and a charging cable, it will be considered three separate product categories, increasing the total customs duty to €9.
Even if an order was placed before July 1, any goods entering customs on or after that date will be subject to the new rules. The existing import VAT rates of 19% and 7% will remain unchanged.
There will be no procedural changes for consumers regarding customs clearance. Courier companies will continue to pay the customs duty in advance and collect the amount from recipients upon delivery.
In addition, online sellers registered under the Import One-Stop Shop (IOSS) system will be able to include the customs duty directly in the sale price. Authorities also emphasized that this fixed customs duty should not be confused with the separate Parcel Handling Fee, which is scheduled to take effect in November.
German Finance Minister Lars Klingbeil stated that abolishing the €150 customs exemption threshold on July 1 would directly contribute to domestic employment.
Defending the measure as a way to protect the internal market, Klingbeil said, “This step protects our retail sector and, consequently, Germany’s economy and jobs. Products imported under this exemption were often of poor quality and harmful to health or the environment.”