In a significant shift for global e-commerce and retail supply chains, the European Commission is advancing plans to eliminate the current €150 threshold under which e-commerce goods imported into the European Union are exempt from customs duties. According to reports from the Financial Times and Reuters, this regulatory adjustment primarily targets high-volume, low-value shipments originating from popular platforms such as Temu, Shein, and AliExpress.

Under the proposed customs reform, all imported e-commerce parcels entering the EU will require full customs declarations, including precise Harmonized System (HS) codes. These shipments will be subject to standard import duties regardless of their transaction value. European authorities aim to use this measure to combat widespread customs undervaluation and establish a more level playing field for domestic brick-and-mortar and online retailers who have struggled to compete with low-cost foreign imports.

 

 

For businesses, this regulatory shift means that automated classification and compliance systems must be upgraded to handle the massive volume of individual parcels that previously entered the EU with minimal documentation. The requirement for precise HS codes at the point of entry will demand greater data sharing between e-commerce platforms, logistics providers, and customs authorities to prevent severe bottlenecks at European ports of entry.

 

 

In a parallel effort to tighten import compliance, India’s Central Board of Indirect Taxes and Customs (CBIC) has implemented a new mandate requiring importers to provide detailed chemical and technical qualifiers alongside standard 8-digit HS codes. As reported by The Economic Times, import declarations for specific chemicals, pharmaceuticals, and medical devices must now include IUPAC names, CAS numbers, and brand details.

 

 

According to the Central Board of Indirect Taxes and Customs, this measure is designed to prevent the misdeclaration of sensitive goods, ensure accurate tariff assessment, and accelerate the customs clearance process by reducing the need for physical sampling and laboratory testing. Global exporters shipping to India must now ensure that their technical documentation is fully aligned with these new requirements, as standard HS codes alone will no longer suffice for clearance.

 

 

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