The recent abolition of the US de minimis exemption for low-value shipments from China is turning the existing world of e-commerce and logistics upside down. What does this mean for the European Union, and how can your company benefit from this shift? Here, we delve into the core of this recent development, the implications for the EU market, and the unparalleled opportunities for deploying customs software.

What is the de minimis abolition and why is it important?

Until 2 May 2025, goods valued under 800 USD could enter the United States without paying import duties or undergoing extensive customs checks, thanks to the de minimis exemption. This rule fuelled the growth of Chinese e-commerce giants like Shein and Temu, enabling them to deliver their cheap products directly to American consumers. However, with the abolition of this exemption, these shipments are now subject to tariffs of up to 30%, following an initial peak of 145%. This has led to a near halving (43%) in the volume of low-value shipments from China to the US in May 2025, according to aviation and logistics consultant Aevean.

This change has not only affected the air freight sector, causing a 10.7% drop in freight traffic from Asia to North America, as reported by IATA. Chinese e-commerce companies are now forced to shift their focus to other markets, particularly the European Union (EU) and Southeast Asia.

What does the increase in e-commerce shipments mean for the EU?

For the EU, this means an increase in low-value shipments, new customs challenges, and a growing need for advanced customs software. After all, the shift of Chinese e-commerce shipments to Europe comes at a crucial moment, creating a confluence of consequences.

The EU has already abolished the VAT exemption for goods under €22 since 2021 and introduced the Import One Stop Shop (IOSS) to collect VAT on shipments up to €150. In addition, there are plans to completely scrap this €150 customs exemption, possibly even before the planned date of 1 March 2028. This will subject all incoming shipments to customs duties and VAT, significantly increasing the complexity of customs processes.

At the same time, the European Commission plans to introduce the EU Customs Data Hub soon, which will initially apply to e-commerce shipments. This will be a system for real-time verification of import compliance, further shifting the responsibility for VAT and customs duties to e-commerce platforms. These reforms, combined with the increase in shipments from China, create a perfect storm for companies reliant on efficient customs handling.

Key implications for the EU:

• Increase in E-Commerce Shipments: Chinese platforms are targeting Europe to compensate for the loss of the US market, leading to higher freight volumes and more pressure on customs systems.
• Stricter Customs Rules: The abolition of the €150 exemption and the expansion of IOSS will force companies to revise their processes to remain compliant with customs regulations.
• Geopolitical Tensions: The US-China trade war and the focus on trade protection in the EU are heightening the need for robust compliance solutions. Import tariffs are back in full force.
• Competitive Pressure: European retailers and producers will face increasing competition from cheap Chinese products. This will strengthen the call for stricter controls on counterfeits and illegal imports.

 Opportunities for customs software in the EU

The increase in low-value shipments and stricter EU regulations offer unprecedented opportunities for companies looking to streamline their customs processes. As a provider of customs software, Gateway sees these developments as a chance to help businesses navigate the complexity of modern trade. Here are the key opportunities:

• Automation of customs processes
  With the expected increase in shipments, manual customs handling is no longer an option. Fortunately, advanced customs software can fully automate import declarations, VAT calculations, and tariff classifications, saving companies time and costs. Our solutions integrate seamlessly with customs regulations, ensuring you are always compliant.
• Seamless IOSS integration
  The expansion of the Import One Stop Shop requires e-commerce platforms to collect and remit VAT to the EU. Real-time tariff calculations ensure that consumers are not faced with surprises.
• Data Analysis for supply chain optimisation
  In a rapidly changing trade environment, insight is crucial. With comprehensive data analysis, you can optimise costs, delivery times, and customs procedures. Whether you are a small e-commerce business or a large marketplace, these tools help you make informed strategic decisions.
• Future-proof compliance
  With the impending abolition of the exemption from import duties up to €150 and the introduction of the deemed supplier rule (where marketplaces are responsible for VAT and customs duties), preparation is essential. Gateway’s scalable solutions are designed to anticipate these changes, keeping you one step ahead.

Why Gateway is your partner

At Gateway, we understand that customs compliance is more than just following rules. It is a strategic advantage. Our cloud-based customs software is designed to support businesses from a few hundred declarations per month to global logistics providers with many thousands per month. With over 40 years of experience in customs automation and a team of experts in both customs software and certified customs knowledge, we offer solutions that are not only efficient but also future-proof.

What makes Gateway unique?

• Scalable Solutions: From startups to multinationals, our software grows with you.
• Integrations: Seamless connectivity with customs systems and various ERP and WMS systems.
• Personal, Expert Support: Our experts are ready to support you, wherever and whenever.

Activate your business for the future

The abolition of the de minimis exemption in the US marks a turning point in the global e-commerce sector. With this, the EU is on the cusp of major changes. This is the moment to invest in customs software that prepares your business for the future. With Gateway, you can turn the complexity of customs processes into a competitive advantage.

Ready to take the next step? Contact us today for a free demo of our customs software, or a consultation on your specific needs.

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