The end of duty-free parcels
Washington, Brussels, London and Tokyo have decided that duty-free entry for low-value parcels became a subsidy to foreign sellers, a revenue leak and a blind spot for safety and security checks. Each is closing it on its own timetable and with its own data rules, while Brazil, heading into an election, went the other way.
From geopolitics to the parcel
- 2025-05
Beijing asked the EU for a fair, transparent and non-discriminatory business environment for Chinese companies as Brussels prepared its parcel fee.1
- 2026-03
In Brazil a poll found 62% naming the small-parcel tax the government's biggest mistake, ahead of the October election.2
- 2026-06
China's trade surplus with the EU reached €360.6 billion in 2025, and Trade Commissioner Maroš Šefčovič called the trend not sustainable.3
- 2026-06-24in force
The United States suspended its $800 de minimis exemption indefinitely for all modes, from 24 June for express and 24 July for mail, with a statutory repeal from 1 July 2027.45
- 2026-07-01in force
The EU charges a flat €3 customs duty per tariff category on parcels up to €150, as an interim measure until 1 July 2028.67
- 2026-07-13adopted
The UK confirmed it will remove its £135 low-value customs relief by October 2028 and make sellers and marketplaces liable for the duty.8
- 2028-04-01adopted
Japan's 2026 tax reform ends the consumption tax exemption for imports of ¥10,000 or less, with foreign sellers and large platforms collecting at the point of sale.9
- 2026-09-10in force
Brazil signed into law a zero federal import tax on purchases up to $50 through certified platforms, while the state ICMS tax still applies.102
- 2025-09
After the American exemption ended for all origins, 88 postal operators suspended some or all US-bound services and US-bound mail from UPU members fell 81% in a week.11
- 2026-08
Liège Airport reported e-commerce parcels down 24% in July, and French customs put the fall in Chinese parcel imports at 30% to 40% since the EU duty started.1213
- 2026-09
Temu's owner is investing in local fulfilment, and Amazon says 97% of its EU shipments already leave from European warehouses.1415
- 2026-08
Brazil went the other way: import declarations rose 74% year on year in August after the zero rate.16
- ↑ Compliance
Every consignment becomes a customs declaration: the new US postal informal entry needs a 10-digit classification, origin, value and an eligible filer for each item.4
- ↑ Cost
Flat charges weigh most on cheap goods: on a €6 accessory, the EU's €3 duty and €2 fee almost double the price.617
- ↓ Volume
Direct China to consumer air parcels into the US and the EU have fallen to a structurally lower level, Brazil being the exception.121316
- ↑ Network
Fast-moving items move into bonded and domestic warehouses, so value shifts from long-haul air lanes to import clearance and destination fulfilment.1415
Our reading: outside Brazil, the duty-free direct parcel is in structural, not cyclical, decline, and the remaining flow pays per declaration rather than per kilo. The next contest is over who files and on what data, which favours operators with delivered duty paid capability and clean item-level customs data.
What comes next
- 2026-10-22United States: compliance date for partner agency requirements under the postal informal entry rule
- 2026-11-01EU: €2 handling fee per item on low-value distance sales becomes chargeable
- 2027-07-01United States: statutory repeal of the de minimis exemption takes effect
- 2028-04-01Japan: consumption tax collected at the point of sale on imports of ¥10,000 or less
The lens behind the decisions
Companies visibly affected
Solution landscape
Read the full analysis
The small-parcel door closes: who pays, who declares, and where volume goes
The US, the EU, the UK and Japan are ending duty-free treatment for low-value e-commerce parcels, while Brazil has just reopened its door. For carriers and platforms, the question is no longer whether a small parcel pays, but who declares it, on what data and from which warehouse.
End of de minimisEU customs reformTrade policy · North AmericaAmerica charges every parcel and puts North America's trade pact on a yearly leash
Washington has written the end of de minimis into customs law, rebuilt its tariffs after the Supreme Court ruling and refused to renew the USMCA. Parcels now clear as full imports, flows inside North America have become one-sided, and margin is moving to whoever holds the broker licence and local stock.
USMCA leashEnd of de minimisRegulation · European UnionEurope now charges every parcel. Who absorbs the bill?
Since 1 July a €3 duty applies to every tariff line in a low-value parcel, and from 1 November a €2 handling fee follows. Volumes into the main EU gateways have roughly halved, and the fight is now over who pays, who carries the liability and who owns the data.
EU customs reformEnd of de minimisGeopolitics · United KingdomThe UK's £135 gap: British parcels caught between Washington, Brussels and Beijing
Britain will end duty-free entry for low-value parcels only in October 2028, after the United States and the EU have already closed their doors. Until then the UK is the soft landing for direct Chinese parcels, while British exporters face tougher terms in both of their biggest markets.
UK £135 gapEnd of de minimisGeopolitics · Latin AmericaBrazil scraps its small-parcel tax before the vote. Latin America splits on the parcel
Brazil has zeroed the federal tax on imports up to US$50 and turned it into law days before the 4 October election, while Mexico taxes Asian parcels harder and Argentina opens up. For carriers and platforms, the next fight is the 2027 consumption tax and the compliance data it will demand.
LatAm splitEnd of de minimisSources
- China seeks fairness amid EU's parcel fee plan for likes of Shein, Temu · Just Style
- Seeking positive agenda items, Lula signs end of the 'blusinhas tax' · Poder360
- EU gets tough on China as trade imbalance stokes deindustrialisation fears · Al Jazeera
- Indefinite Suspension of the De Minimis Exemption for Mail Shipments and New Postal Informal Entry (interim final rule) · Federal Register / U.S. Customs and Border Protection
- U.S. CBP indefinitely suspends de minimis exemption for all modes of importation · KPMG TaxNewsFlash
- Ensuring fairness and safety: €3 customs duty for low-value parcels · European Commission
- Council gives final green light to new customs duty rules for small parcels · Council of the European Union
- Reforming the customs treatment of low value imports: consultation response · HM Treasury / HMRC (GOV.UK)
- Japan to introduce point-of-sale consumption tax for low-value goods from April 2028 · VATupdate (citing PwC Japan)
- Senate zeroes the 'blusinhas tax' on international remittances of up to US$50 · Agência Senado
- Universal Postal Union deploys post-de minimis tool · Supply Chain Dive
- China-Europe e-commerce cargo after EU de minimis reform · STAT Times
- Chinese imports plunge 30% to 40% after EU tax on small parcels · Euronews
- Temu owner invests in local fulfillment in face of de minimis changes · Supply Chain Dive
- EU slaps €3 fee on cheap ecommerce parcels in blow to Shein, Temu, AliExpress (Reuters) · FashionNetwork / Reuters
- Without the 'blouse tax', international purchases rise 74% in August · Poder360
- EU sets €2 handling fee for small parcels under customs reform · VATupdate