‘2 in 5 firms unprepared for new European Union duty rules’

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June 24, 2026 | 12:00am

MANILA, Philippines — Two in five businesses in Asia-Pacific, including in the Philippines, may find it difficult to comply with the additional cost of exporting to the European Union starting July, according to logistics giant FedEx Corp.

Based on a survey by FedEx, 41 percent of businesses in the region said they are still in the early stages of understanding and preparing for the abolition of the de minimis duty exemption in the EU.

By July 1, the EU is eliminating the duty exemption for products below 150 euros; instead, exporters would have to pay a standard three euros to enter the EU.

The study also confirmed that exporters are starting to reconsider their shipping plans to the EU.

At least 45 percent of respondents said the new customs regulations would hamper their growth because of higher landed costs and increased compliance burden.

More than one in three have also raised their EU pricing to cover the new flat rate for under-150 euro products. Half of them said they would look into market opportunities beyond Europe, such as Asia (28 percent) and the United States (23 percent).

Given this, FedEx Asia-Pacific president Salil Chari said the shipper is expanding its portfolio of logistics services to support exporters in keeping their EU market in the wake of higher customs costs.

“As global trade continues to evolve, businesses across Asia-Pacific are navigating an increasing regulatory complexity, while pursuing growth across key markets,” Chari said.

Chari told exporters that FedEx has already developed a clearance platform aligned with the new customs procedures in the EU, minimizing the risk of delays that add to costing.

FedEx also came up with a customer support program that includes a one-stop shop for product identifiers. The shipper is also granting clients with access to compliance specialists who would take time to explain classification and documentation.

Further, FedEx has added five weekly flights between Asia and Europe over the past 12 months. Chari said the shipper now offers 26 weekly flights along that corridor to enable express courier in at least 48 hours.

Recently, FedEx has gathered over 5,000 businesses across 12 markets in Asia and the Pacific to discuss, particularly to small and medium enterprises, the evolving trade rules worldwide.

Afterward, the shipper conducted a post-meeting survey to grasp how knowledgeable attendees were on the removal of duty exemption for low-cost exports to the EU.