Europe: End of De Minimis?

European importers, especially retail, are urging the EU (and the UK) to follow the U.S. and end the “de minimis” exemption for low‑value imports, especially from China.

What is “de minimis”? It’s a trade rule that lets low‑value items (e.g., modestly priced consumer goods) enter a country with minimal customs checks or duties.

This rule was originally designed to make life easier for customs authorities and consumers by cutting down paperwork for inexpensive items.

The Problem Now?

In recent years, the rapid growth of cross-border e-commerce, particularly from China, has made the exemption a debated issue. Millions of low-value parcels arrive in Europe every day, many slipping through without duties or proper oversight. Retailers in Europe argue that this creates unfair competition.

Following the U.S. Example

The U.S. has already taken steps to tighten its rules and now European industry groups are urging the EU and possibly the UK to do the same. Ending the de minimis exemption would mean all goods, regardless of value, are taxed and processed through customs.

If the rule is removed:

• Importers will face extra costs on low-value shipments.
• Consumers may see price increases on items ordered from overseas websites.
• Logistics providers and freight forwarders could experience a surge in customs processing, creating both challenges (higher volumes, potential delays) and opportunities (greater demand for customs brokerage services).
• Critics warn that it could slow down parcel deliveries and increase costs for end-consumers.

This highlights how policy changes in trade and customs can ripple across supply chains, from retailers and freight forwarders to the final buyer.

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