On 12 December 2025, the EU Council of Ministers, representing Member States’ interests, agreed on the introduction of a new levy on small parcel imports into the European Union. This change to the EU’s customs regime will directly impact Hong Kong and other businesses outside the EU selling goods to European consumers. From 1 July 2026, a new fixed customs duty of €3 will apply to small parcels valued under €150 entering the EU market.

Eight European Union Member States, representing more than half of the bloc's population, have united to call for stronger action against third-country e-commerce platforms that fail to comply with EU standards. Austria, Belgium, France, Greece, Hungary, Italy, Poland and Spain jointly wrote to the European Commission earlier in December, demanding urgent measures to address what they describe as systemic risks to European businesses and consumers.

In a landmark step to modernise Europe’s customs system and ensure fair competition in the booming e-commerce market, EU finance ministers have agreed to abolish the €150 duty exemption for low-value imports. The decision, adopted by national governments in the Council on 13 November 2025, marks a major advance in the ongoing overhaul of the EU’s customs framework.

On 31 October 2025, MLex reported that some EU countries, namely Romania, France, Belgium and the Netherlands, plan to impose national parcel handling fees on low-value e-commerce shipments under 150 EUR. The European Commission and retail stakeholders have expressed concern that these unilateral measures could result in double taxation, so-called border shopping and market fragmentation. As part of the ongoing EU customs reform, a single harmonised EU fee is under consideration, as well as an end to the exemption for parcels valued at under 150 EUR.

As uncertainty in global trade persists and the China Plus One trend grows, many companies with factories on the Chinese Mainland are striving to expand their manufacturing and sourcing activities elsewhere and to rearrange their regional supply chains in order to diversify risk. Against this backdrop, Southeast Asia has emerged as an ideal location for a great number of manufacturing enterprises seeking new development. A case in point is the Hong Kong-based printing firm Sun Hing Printing Holdings Limited (SHP), which has chosen Indonesia as a strategic stronghold to drive a new phase of “transformation and renewal”.

The European Chemicals Agency (ECHA) has announced that it has launched a Call for Evidence to support an EU study on substances of concern in packaging under the new packaging and packaging waste Regulation (the PPWR). Interested parties across the supply chain are invited to provide data on packaging materials, chemicals, recycling, and waste management, shaping possible future restrictions and circular economy measures. The deadline for submitting feedback is 28 October 2025.

The European Commission (Commission) has published a Communication revealing its strategy to revitalise the European Single Market. The strategy focuses on eliminating cross-national barriers to trade inside the European Union and on making the functioning of the Single Market a joint responsibility of the Member States and the Commission. Among other issues, the strategy aims to dismantle fragmented rules on packaging and packaging waste and outdated product-related rules, while implementing stricter harmonised enforcement across the Member States, to ensure product compliance.

The FDA has extended until 15 July the period for interested parties to comment on a 16 January proposal to require a front-of-package nutrition label for most packaged foods that, according to the agency, would give consumers readily visible information about a food’s saturated fat, sodium and added sugars content.

The European Union is stepping up efforts to address the challenges posed by e-commerce, focussing on non-compliant products from international sellers and strengthening consumer protection. EU Commissioner Michael McGrath has outlined a strategy that includes a planned Digital Fairness Act, enhanced enforcement mechanisms, and collaboration with global partners to protect European consumers and ensure fair competition.

Regulation (EU) 2025/40 of the European Parliament and of the Council entered into force on12 February 2025. The new Regulation updates packaging rules at EU level and seeks to promote the circular economy while reducing packaging waste. Hong Kong sellers of all types of goods using packaging should be aware that the measures cover the full lifecycle of packaging. Many of the regulation’s provisions will apply from August 2026.