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U-Freight Group said importers and e-commerce companies are adjusting their supply chain strategies following the EU’s abolition of the €150 duty-free threshold for low-value consignments
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The company noted a growing shift toward regional fulfillment,
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Locally fulfilled online orders have been overtaking direct cross-border shipments in Spain, France, and Poland
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Holding inventory within Europe can reduce border-related costs, improve delivery times, and enhance supply chain resilience
U-Freight Group said importers and international e-commerce companies are adjusting their supply chain strategies following the European Union’s (EU) abolition of the €150 duty-free threshold for low-value consignments, a move that has increased customs costs for cross-border shipments.
“The removal of the €150 de minimis threshold marks a major turning point for cross-border e-commerce,” Simon Wong, chief executive officer of U-Freight Group, said in a statement.
“Business models built around shipping individual low-value parcels directly into Europe now face higher costs, increased customs complexity and the potential for longer clearance times. If they haven’t already, companies need to review their supply chain strategies now rather than wait for costs to escalate,” he added.
Under regulations that took effect on July 1, shipments valued at €150 or less entering the EU are now subject to a temporary customs charge of €3 per commodity code in a parcel.
READ: E-commerce sellers to EU must now pay €3 duty for under €150 packages
The measure updates the previous duty-free exemption for low-value goods and is anticipated to stay in effect until at least July 1, 2028, as part of the EU’s wider customs reform efforts.
U-Freight said this is expected to have a substantial impact on businesses shipping large volumes of business-to-consumer (B2C) parcels into the region.
The global logistics and freight forwarding group noted that the new customs regime is intended to modernize customs procedures, create a more level playing field between parcel and bulk imports, and discourage the undervaluation of goods previously used to qualify for duty exemptions.
Forward positioning within EU
U-Freight said industry trends indicate supply chains are already evolving, with locally fulfilled e-commerce orders in Spain, France, and Poland now surpassing direct cross-border shipments, reflecting increasing demand for regional distribution and forward-positioned inventory.
The logistics provider said maintaining inventory within Europe offers businesses a practical long-term response to the new regulatory environment by reducing border-related costs, improving delivery performance, and strengthening supply chain resilience.
“Forward positioning inventory within Europe is becoming a competitive necessity rather than simply an operational option,” Wong said. “Regional fulfilment enables businesses to improve delivery speeds, reduce customs-related uncertainty and maintain a seamless customer experience while remaining fully compliant with the latest EU requirements.”
U-Freight said it is encouraging exporters serving the European market to review their shipping profiles, assess product classifications, evaluate the financial impact of the new customs charges, and consider regional fulfillment strategies to improve efficiency and reduce overall logistics costs.
READ: U-Freight sees bulk shipping shift to US among e-commerce firms
