The European Union is preparing a comprehensive reform of its customs system, originally proposed by the European Commission in 2023. In July last year, the Council of the EU approved the launch of inter-institutional negotiations with the European Parliament. If adopted as planned, every package entering the EU, regardless of size or value, will be subject to the same controls and duties.
Negotiations Ongoing
Talks between the Council and the European Parliament are currently underway. According to the Council, the key elements of the reform include the establishment of an EU Customs Data Hub, the creation of a new EU Customs Authority, the simplification of customs procedures, and the abolition of the €150 duty-free threshold.
According to European Commission data, 4.6 billion e-commerce parcels valued below €150 were imported into the EU in 2024, with 91% of shipments originating from China.
Under the new rules, goods worth less than €150 will no longer be exempt from customs duties. Duties will apply from the first euro of a shipment’s value upon entry into the EU, aligning the system more closely with existing VAT rules.
As a first step, a temporary flat customs fee of €3 per package valued under €150 will be introduced for all such parcels entering the EU, starting July 1 this year.
Customs Charged by Product Category, Not Per Parcel
Customs duties will not be calculated as a single fee per package but per product category within a shipment. For example, a parcel containing one silk blouse and two wool blouses would be charged €3 for silk and €3 for wool, resulting in a total customs fee of €6. Full implementation of the reform is planned for 2028, when the EU Customs Data Hub is expected to become operational.
“According to the Council of the European Union, the aim is to close loopholes related to undervaluation, dismantle the model that encouraged the mass shipment of low-cost goods in small parcels, and establish fairer competition conditions in the EU market. According to data from the European Commission, approximately 4.6 billion consignments valued at up to €150 entered the EU in 2024, with 91% of those shipments originating from China, clearly illustrating the scale of the segment targeted by the measure,” the eCommerce Association in Bosnia and Herzegovina told Forbes BiH, commenting on the announced reform.
What the Reform Means for Online Shopping from Bosnia and Herzegovina
Since the measure applies to imports into the EU, it does not directly change Bosnia and Herzegovina’s domestic customs rules. However, market effects are expected to be felt indirectly.
According to the eCommerce Association of Bosnia and Herzegovina, some platforms and traders may adjust their logistics models for Europe, which could affect prices and product availability in the region, particularly where orders rely on EU-based distribution centers. In practice, ultra-low-cost goods that previously benefited from a combination of low production costs and EU customs exemptions may lose part of their competitive advantage. This could slightly strengthen the position of domestic and regional online retailers.
By comparison, Bosnia and Herzegovina currently exemptsshipments of negligible value, up to BAM 300 per parcel, from import duties and VAT, subject to certain frequency limits.
This means Bosnia and Herzegovina has a significantly higher duty-free threshold than the EU, potentially influencing demand patterns in cross-border e-commerce. According to industry experts, the biggest impact will be on high-volume, low-margin business models, while the rest of the market is likely to adapt through pricing strategies, warehousing solutions and shipment structuring, without necessarily leading to uniform price increases across all products.
Surge in Low-Value Parcels
Explaining the abolition of the €150 threshold, the Council said the measure is necessary due to the exponential growth of e-commerce.
“Every day, the EU is flooded with low-value parcels,” the Council stated, noting that the duty exemption has made e-commerce increasingly vulnerable to fraud. Many shipments entering the EU are intentionally undervalued to exploit the existing loophole, creating unequal conditions for EU businesses.
The system has also encouraged sellers to split larger consignments into smaller parcels, increasing packaging waste and emissions, Forbes writes.
