The European Union has voted to end its de minimis exemption for the import of low-value duty free goods, with changes expected as early as next year.

While the EU has voted to scrap the rule that currently allows goods valued under €150 to enter the bloc without customs duty, the official end of the exemption may not happen for up to three years.

However, EU ministers have agreed to introduce an interim system which could potentially be up and running next year.

The push to target low value products early comes as reports suggest that around 65% of incoming e-commerce shipments are now believed to have misdeclared values to avoid taxes.

The continuous expansion of direct-to-consumer e-commerce platforms, like Temu and Shein, has led to significant growth in low value products entering the bloc, with around 91% of items shipped under the de minimis regime currently originating from China.

The United States abolished its own de minimis ruling for imports under $800 in August of this year. After first applying the change to Chinese goods in May, the Trump administration extended it to all countries in August.

While US consumers can no longer rely on the exemption to buy cheap items, the move has levelled the playing field for e-commerce businesses that were importing products in bulk and paying duty in their supply chains.

The UK may be next in line to cancel its own de minimis threshold, which enables products under £135 to be imported free of duty. The ruling is understood to be under review by UK government, and the chancellor may even revise or remove the exemption in the upcoming budget.

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