EU to Charge €3 Duty on Small E‑Commerce Parcels from July 2026

The European Union is preparing a significant change to how cross‑border e‑commerce parcels are treated at its borders. Starting 1 July 2026, the bloc will apply a fixed €3 customs duty to all small parcels valued at €150 or less entering the EU; a long‑standing duty‑free threshold will effectively be closed. This decision follows agreement among EU finance ministers and forms part of a broader effort to modernise the EU’s customs system in light of booming online trade.

For ecommerce sellers, marketplaces, and logistics partners, this move signals a significant shift. It affects cost structures and reshapes how imports are priced, sold, and delivered across the Single Market.

Why the EU Is Ending the Duty‑Free Exception

For decades, small parcels imported into the EU with a declared value under €150 were exempt from customs duties. This exemption helped fuel the explosive growth in cross‑border ecommerce, especially for products shipped directly to consumers in the EU from non‑EU sellers. In 2024 alone, roughly 4.6 billion low‑value parcels entered the EU, about 12 million every day, overwhelmingly from outside the bloc.

However, this duty‑free regime drew criticism from European retailers who argued that it created unfair competition. Non‑EU sellers, particularly from China, were able to undercut EU‑based businesses on price because they avoided duties that domestic sellers face. There were also concerns about consumer safety, fraud, and environmental impact tied to unregulated small shipments.

In response, EU policymakers agreed to introduce a €3 flat customs duty per item. It will apply primarily to parcels shipped to EU consumers by non‑EU sellers registered under the Import One‑Stop Shop (IOSS) for value‑added tax (VAT), which currently covers around 93 % of ecommerce imports into the bloc.

What the New Duty Means for Ecommerce

The introduction of a €3 duty is more than a small administrative change. It has the potential to reshape how goods under €150 are priced and shipped into Europe. For online sellers and marketplaces, the implications include:

Higher landed costs: Until now, low‑value goods could be delivered without customs duties, making them particularly attractive for commodities, accessories, and other lower-value items. With the new duty, sellers will need to reconsider pricing strategies or absorb some of the additional costs.

Margin pressure on low‑cost items: A flat €3 duty represents a larger share of the total price for cheap products. For example, for a €15 item, a €3 duty would increase direct costs by 20% before VAT and shipping are considered.

Strategic logistics reassessment: Some sellers may explore EU-based fulfillment centres or shift to bulk shipments to avoid multiple €3 charges. In fact, because the duty applies under the customs tariff code, effectively per unique item type, multi‑item parcels in different categories may incur multiple duties.

Pricing transparency and checkout impact matter more than ever. Platforms and sellers must clearly explain that the €3 duty is separate from VAT and may affect the total cost shown at checkout. How these duties are displayed and collected could influence purchase decisions and returns.

Temporary Measure Ahead of Broader Reform

The €3 customs duty is a temporary transitional measure. It will remain in place until the EU implements its broader customs reform framework. This includes the EU Customs Data Hub, which is expected to launch around 2028. This long‑term project aims to digitise customs data, accelerate processing, enhance risk analysis, and eliminate low‑value exemptions altogether.

Once this digital system is operational, standard EU tariffs will apply to small parcels based on their exact classification, rather than a flat fee. That shift, part of the EU’s broader customs modernisation, expects to bring greater transparency and compliance for all traders.

In the meantime, sellers and marketplaces will operate under a regime where customs duty and VAT are calculated separately. VAT will still be handled through mechanisms such as the Import One-Stop Shop (IOSS). This system simplifies VAT collection at the point of sale and helps ensure consumers pay exactly what they see at checkout.

Impacts on Platforms, Logistics, and Consumers

For global marketplaces and ecommerce platforms such as Amazon, AliExpress, Shein, and Temu, this change marks a turning point. Together, they ship billions of small parcels into the EU, and the new rules could reshape both competitiveness and logistics strategies. Some platforms already have built local fulfilment hubs to cut delivery times and avoid customs complications. This trend could accelerate as duties and regulatory requirements continue to evolve.

From a consumer perspective, the €3 duty alone may not fully deter cross‑border shopping. For small purchases, the additional cost is modest. But combined with potential future handling fees and stricter customs enforcement, total landed costs could rise. That shift may push some buyers toward EU-based sellers or local inventory options.

Meanwhile, logistics partners and marketplaces will need to update their systems. They must manage new duty calculations, ensure compliance with IOSS reporting, and integrate customs data to maintain competitive delivery times.

Preparing for July 2026 and Beyond

With only months before the new duty takes effect, ecommerce businesses have time to prepare. Key steps include:

• Reviewing pricing models for low‑value products to assess the impact of the new duty on profitability.
  
• Evaluating logistics strategies to determine when EU‑based fulfilment or consolidated shipments might offer cost advantages.
  
• Updating checkout transparency to show duty and VAT, avoiding surprises for shoppers clearly.
  

This change also reinforces a broader trend: the EU is serious about modernising its approach to managing international ecommerce. As consumption habits evolve and cross-border trade grows, customs frameworks will need to catch up. For sellers, platforms, and marketplaces, adapting proactively will be essential to maintaining competitiveness and customer satisfaction.