Canada Post has announced the suspension of services to certain European Union countries due to new customs regulations affecting low-value shipments. The postal service stated on its website that parcels bound for twelve countries, including Austria, Belgium, the Czech Republic, and others, will not be accepted until further notice. Shipments to other EU countries where Delivered Duties Unpaid is feasible, such as Poland and Sweden, will still be processed.
The European Union introduced a three-euro customs duty on packages valued at 150 euros or less from outside the bloc, effective this week. Previously duty-free, these low-value packages are now subject to the new regulation, aiming to level the playing field for EU businesses and enhance consumer protection.
The EU emphasized that the measure is temporary, with plans to implement a more comprehensive tax system based on product value, origin, and tariff classification by July 1, 2028. The move aligns with the U.S.’s decision last year to eliminate the long-standing de minimis exemption, which allowed duty-free packages under $800 to enter the country.
The EU stated that the influx of undervalued or falsely declared parcels posed challenges such as customs fraud and unfair competition for EU-based businesses. The new duty aims to address these issues, support fair competition, consumer safety, and environmental concerns related to mass shipping.
In response to the changing landscape, Canada has its own low-value package exemption for customs duties from Mexico and the U.S. valued at $150 or lower. This development reflects a global shift towards stricter customs regulations to ensure compliance, fair competition, and consumer protection.