What are Low Value Imports?
An overview of the global shift in how low-value e-commerce shipments are treated at customs, and the proposed UK and EU reforms.
Global customs authorities are re-evaluating how low-value e-commerce shipments are treated as the volume of parcels from online marketplaces to consumers has surged. Traditional customs systems were built for bulk freight, and they still struggle to handle the millions of additional fast moving groupage movements created by Brexit. The addition of billions of small parcels crossing borders each year has further exposed the limitations of existing processes.
Why change is needed?
Many of these parcels benefit from de minimis thresholds, which allow dutyfree entry and simplified clearance. Governments increasingly view these exemptions as outdated, allowing sellers to bypass duties, standards and undercut domestic retailers. This has raised concerns around lost revenue, product safety, and fair competition in local markets.
Reform in Motion
In response, the US, EU, and UK are all pushing forward with significant customs reforms. The EU plans to remove the €150 duty exemption for small parcels and introduce interim handling measures to manage growing shipment volumes and address concerns about lost revenue, product safety, and competition with domestic retailers. Meanwhile, the UK is consulting on similar reforms, including the creation of a standalone Low Value Imports system separate from the Customs Declaration Service (CDS) to handle high volumes of parcel data more efficiently. This would likely see the end of BIRDS (Bulk Import Reduced Data Set), which is currently used for low-value shipments through CDS.
What it Means Going Forward
These reforms signal a shift towards the end of duty-free exemptions and more data being required for customs systems earlier. Governments are increasingly requiring information such as value, origin, and product details before goods arrive at the border, while marketplaces and sellers may take on greater compliance responsibilities.
For businesses, this could mean:
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New IT integrations Higher data requirements
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Possible changes to fulfilment models, including greater use of regional warehousing instead of direct crossborder parcel shipments.