Global logistics provider U-Freight says businesses trading with the European Union are rapidly adjusting their supply chain strategies following major customs reforms that took effect on July 1, 2026.
The most significant change is the abolition of the €150 duty-free threshold for low-value imports into the EU. Under the new rules, for consignments of €150 or under, there is now a temporary customs charge of €3 for each commodity code within a parcel.
The measure replaces the previous exemption on duties on low-value goods and is expected to last until at least 1 July 2028, as part of the European Union’s wider customs modernisation programme.
U-Freight said the reforms are “one of the biggest changes to European e-commerce logistics in recent years,” and will have a significant impact on businesses that rely on shipping large volumes of direct-to-consumer (B2C) parcels into the EU.
Simon Wong, Chief Executive Officer of U-Freight Group, said, “The elimination of the de minimis threshold is a turning point for cross-border e-commerce.
He said companies that have set up on the back of shipping single low-value parcels direct into Europe are now faced with increased costs of operation, more complex customs procedures and the possibility of longer clearance times. Businesses are therefore being encouraged to review their supply chain strategies before costs rise.
The EU introduced the new customs framework to modernize border procedures, create a more level playing field between parcel shipments and bulk imports, and reduce the undervaluation of goods that previously benefited from duty exemptions.
U-Freight says the market is already adapting. In several major European markets, including Spain, France, and Poland, locally fulfilled online orders have now surpassed direct cross-border shipments, reflecting a growing shift toward regional inventory and fulfilment networks.
The company argues that the placement of inventory within Europe is a practical way for businesses to respond to the new regulations in the long term. Holding products closer to customers, companies can reduce uncertainty around customs, lower logistics costs, improve delivery speeds and increase supply chain resilience.
“Regional fulfilment is increasingly becoming a competitive necessity, rather than simply an operational option, enabling businesses to maintain fast, reliable deliveries, whilst remaining compliant with evolving EU customs requirements,” said Wong.
U-Freight offers integrated services such as international freight forwarding, customs brokerage, warehousing, inventory management and European distribution to help companies cope with the regulatory changes.
The company is encouraging exporters to review their shipping profiles, reclassify their products, and consider the cost implications of the new customs charges and whether having inventory based in Europe would improve efficiency and decrease overall logistics costs.
U-Freight says companies that build more agile, compliant and regionally integrated supply chains will be better placed to remain competitive in the European market as international trade regulations continue to evolve.
