U-Freight Group reports businesses are adapting supply chains as EU ends duty-free threshold for low-value consignments, impacting e-commerce.
The U-Freight Group says businesses are shifting supply chains to regional fulfilment models after the European Union abolished the EUR150 (US$173) duty-free threshold for low-value consignments, reported ACW News.
From 1 July, shipments worth EUR150 or less entering the EU face a temporary EUR3 customs charge per commodity code, replacing the previous exemption. The measure is part of the bloc's wider customs reform programme and will remain in force until at least July 2028.
U-Freight chief executive Simon Wong said the change marks a turning point for cross-border e-commerce. He warned that business models built around direct low-value parcel shipments now face higher costs, greater customs complexity, and longer clearance times.
Industry trends already show companies positioning inventory within Europe to reduce border uncertainty and improve delivery speeds. Locally fulfilled orders have overtaken direct cross-border shipments in markets such as Spain, France, and Poland.
Mr. Wong said forward-deployed inventory is becoming a competitive necessity. Regional fulfilment allows businesses to strengthen resilience, maintain compliance, and preserve customer experience.
U-Freight is advising exporters to reassess shipping profiles, product classifications, and logistics models, and to consider integrated freight, customs, and distribution solutions. The company said agile, compliant supply chains will be essential as regulatory changes continue to reshape global trade.
