Thai SMEs face added cost pressure under new EU low-value import duty
Parcels worth up to €150 now carry a €3 duty for each tariff category, potentially adding pressure on Thai SMEs shipping directly to European buyers.
- The European Union is ending its customs duty exemption for imports valued at €150 or less, imposing a new €3 duty per tariff category, which directly increases costs for Thai SMEs exporting to the region.
- This new cost burden particularly affects Thai SMEs that ship individual, low-value goods like cosmetics, handicrafts, and clothing directly to European consumers, reducing their price competitiveness.
- Thai businesses with existing warehouses or distributors within the EU are expected to be less affected, as their goods will have already cleared customs before being sold to consumers.
- The measure pressures Thai exporters to adjust their business models, such as by using EU distribution centers or competing on product quality and standards rather than relying solely on price.
Europe’s e-commerce market is entering a new phase after the European Union (EU) began applying new customs measures to imports valued at no more than €150 from Wednesday (July 1, 2026), ending a customs duty exemption that had been in place for decades and imposing a €3 duty for each tariff category of goods.
A report published on the website of the Department of International Trade Promotion (DITP), under the Ministry of Commerce, by the Thai Trade Centre in Madrid said Spain began applying the EU measure from the same date to goods worth no more than €150 ordered online by consumers from outside the bloc.
The measure applies across all 27 EU member states, including Spain, one of Europe’s steadily growing e-commerce markets.
It directly affects consumers buying goods from outside the EU, as well as businesses and exporters from third countries such as China, the United States, the United Kingdom and Thailand that sell to European consumers through online platforms or their own websites.
For consumers in Spain, the cost of ordering goods from outside the EU may rise because of customs duty, value added tax (VAT) and handling fees charged by delivery companies.
This could erode the price advantage of low-cost imports and encourage more consumers to consider sellers based within the EU.
For businesses, the measure reduces the advantage previously enjoyed by low-priced imports from outside the EU under the customs duty exemption, creating fairer competition between operators inside and outside the bloc.
At the same time, exporters from third countries, including Thailand, may face higher costs and additional customs procedures, particularly those selling directly to European consumers online.
The measure is also expected to strengthen oversight of imports and reduce the risk of substandard goods entering the European market. Businesses outside the EU will therefore need to pay greater attention to product standards, transparency of information and compliance with EU rules.
Thailand is among the non-EU countries whose online exports to Europe have continued to grow, through both international e-commerce platforms and direct sales on operators’ own websites.
Thai businesses are therefore likely to be affected by the new rules, particularly SMEs selling lower-value goods and shipping individual items directly from Thailand to consumers in Europe.
Products that may be affected include cosmetics, spa products, herbal products, home decorations, handicrafts, jewellery, clothing and lifestyle goods, as the additional costs paid by European buyers could influence purchasing decisions and weaken price competitiveness.
However, Thai businesses with warehouses in the EU, or with importers and distributors already operating in member states, are expected to be less affected because their goods have already completed customs clearance before entering the European market.
The measure may also encourage Thai businesses to adjust their operating models, including by using distribution centres in Europe, consolidating orders to reduce logistics costs and forming closer partnerships with distributors inside the EU.
The Thai Trade Centre in Madrid said the measure reflected tighter EU oversight of e-commerce, with the main aims of improving customs administration, strengthening consumer protection and creating fairer competition between EU businesses and sellers from outside the region.
The measure may increase the cost of ordering goods from outside the EU and prompt some consumers to delay online purchases.
On the other hand, it could strengthen consumer confidence in products that have been inspected and comply with EU standards, in line with the European market’s emphasis on quality, safety, sustainability and transparency about product origins.
For Thailand, the measure may place additional cost burdens on businesses that ship goods directly from the country to European consumers, although the impact will depend on each operator’s business model.
Using EU-based warehouses, improving logistics systems or working with importers and distributors in member states could help reduce the impact.
Thai businesses should closely monitor changes to EU customs rules and prepare the necessary documentation, tariff classifications and cost-management arrangements to preserve their competitiveness in the European market.
They should also compete on the quality, standards, distinctiveness and added value of Thai products rather than relying solely on price.
The measure may also provide an opportunity for Thai businesses to accelerate improvements in product standards and adjust their market-entry strategies for Europe in preparation for future changes in international trade rules.
