The Council of the European Union has approved major changes to how low-value parcels entering the EU are treated at customs. From 1 July 2026, the longstanding customs duty exemption for parcels valued at €150 or less will end. A flat €3 customs duty will apply per item category contained in each shipment. This marks one of the most significant shifts in EU customs policy in recent years. It will change how cross-border ecommerce operates across Europe.
For more than a decade, parcels under €150, even if they originated outside the EU, could be imported without customs duties. Online sellers often benefited from this threshold when selling into European markets. This was especially true for those shipping directly to consumers from non-EU countries. However, that era ends in July. In its place, the EU has agreed on an interim customs duty regime. It will remain in effect until the broader overhaul of the EU customs framework becomes operational. The EU currently expects to launch the centralized EU Customs Data Hub around 2028.
Under the new framework:
In practice, this means that when a customer orders different product types in a single parcel, duty may apply to each category. For example, a blouse and a pair of shoes could each incur the €3 charge, increasing overall costs for both sellers and consumers.
The EU’s customs authorities have struggled to keep pace with the rapid growth of low-value parcel flows, especially from markets outside the Union. In 2024 alone, almost 5.8 billion low-cost parcels entered the EU, a 26% increase from 2023 and more than four times the volume recorded in 2022. At these volumes, authorities have struggled to manage customs inspections effectively. This pressure has raised concerns about consumer safety, compliance with EU standards, and fair competition for European merchants.
To date, many of these low-value parcels have entered the market without customs duties. Authorities typically collect value-added tax (VAT) through the Import One-Stop Shop (IOSS) system. The new customs duty serves as an interim measure to level the playing field between EU businesses and non-EU sellers. It aims to address the gap created by EU companies paying duties and meeting strict compliance requirements, while some non-EU sellers leverage exemptions to offer ultra-low prices.
With a €3 duty per product category, sellers who ship multiple distinct goods in a single order may incur higher cumulative duties. This affects pricing models, especially for imported parcels sold at low margins. Sellers and marketplaces will need to reassess cost structures and consider how customs duties affect their competitiveness.
Customs duties under the new system are based on tariff subheadings, detailed product classifications used to determine customs treatment. This makes accurate product classification and data reporting more important than ever. Misclassification can lead to incorrect duty charges, shipment delays, or fines.
In the coming years, as the EU implements broader customs reform and digital data platforms, the demand for high-quality structured product data is expected to rise. Companies that invest in accurate and consistent product identifiers, classifications, and descriptions will navigate customs processes more efficiently. This approach also strengthens compliance and reduces delays.
Global marketplace platforms that facilitate direct-to-consumer shipments into Europe, especially those with high volumes of non-EU sellers, will need to update their tax and duty workflows. They must align their systems with the new rules. Platforms may also need to provide sellers with clearer information on how duties are calculated and charged, helping them avoid surprises at customs clearance.
The flat €3 customs duty serves as a temporary measure to bridge the gap until broader EU customs reform takes effect. This reform includes the planned EU Customs Data Hub, currently expected around 2028. Once operational, this system is expected to further modernize customs procedures by enabling real-time data exchange and more precise duty calculations.
In the meantime, businesses should prepare for a landscape where low-value imports are no longer treated as a special case. This signals a structural shift in how cross-border ecommerce interacts with customs authorities. While the upfront costs may rise, the move also aims to create clearer, fairer market conditions and encourage compliance across global trade flows.
This change is not just a regulatory update; it represents a turning point in how Europe regulates and taxes the flood of small parcels entering its market. Preparing early can help sellers and platforms remain competitive as new customs duties take effect.
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