New EU Fixed Customs Duty on Low-Value E-Commerce Shipments from July 2026

Petra Faruq
Jan 5
3 min read

What You Need to Know

From 1 July 2026, a major change is coming to how the European Union treats low-value e-commerce imports — and it will affect sellers shipping B2C parcels into the EU.

If you’ve been relying on the long-standing duty-free treatment for parcels valued under €150, that’s about to change.

In a move designed to level the playing field for EU businesses and modernise customs, the Council of the European Union has agreed to introduce a flat customs duty of €3 per item on low-value e-commerce shipments entering the EU from outside the bloc.

What Exactly Is Changing?

For many years, small parcels valued under €150 entering the EU were exempt from customs duties — a so-called “de minimis” exemption. While VAT still applied, no customs duty was charged on import for most low-value consumer goods sent directly from non-EU sellers.

From 1 July 2026:

A fixed customs duty of €3 per item will apply to low-value parcels (≤ €150) imported from outside the EU.
The duty is applied per item, based on the tariff classification of each product.
A single parcel containing multiple distinct items may incur multiple €3 charges.

This measure will apply temporarily, until the EU’s broader customs reform comes into force — expected around 2028, when the new EU Customs Data Hub becomes operational.

Why Is the EU Changing the Rules?

The reform is part of a wider effort to modernise the EU Customs Union and address challenges caused by the surge in low-value online shopping:

✔ Fair competitionNon-EU sellers previously benefited from duty-free imports, allowing them to undercut EU businesses.

✔ Fraud reductionThe de minimis exemption encouraged undervaluation and parcel splitting to avoid duties.

✔ Customs workload and safetyBillions of low-value parcels strain customs authorities and increase compliance and security risks.

📊 In 2024 alone, around 4.6 billion e-commerce parcels valued under €150 entered the EU — approximately 91% from China.

What This Means for Sellers and Shippers

Whether you’re a UAE-based seller shipping into the EU or a logistics provider supporting cross-border brands, this change has direct operational and pricing implications.

1. Duty Costs Must Be Built Into Pricing

Each item will now attract a €3 customs duty, regardless of its low value.

Examples:

1 item in a parcel → €3 duty
3 distinct items → €9 duty

This is in addition to VAT, platform fees, and handling charges.

2. Parcel Composition Matters

Because the duty applies per item and tariff heading:

Multi-item shipments may incur higher total duties.
Grouping similar products under the same tariff code may reduce costs — but accurate classification is critical to avoid compliance risks.

3. IOSS Still Applies — But Doesn’t Remove the Duty

If you use the Import One-Stop Shop (IOSS) to collect VAT at checkout:

VAT reporting remains unchanged.
The €3 customs duty still applies, even for IOSS-registered shipments.

VAT and duty planning will need to be handled together when pricing and declaring imports.

Key Takeaways

What’s new: €3 fixed customs duty per item on low-value e-commerce shipments (≤ €150)
Effective date: 1 July 2026
Why it matters: Ends duty-free treatment for low-value parcels and promotes fair competition
Who is affected: All non-EU sellers and logistics partners shipping B2C goods into the EU
Temporary measure: Applies until full EU customs reform and the Customs Data Hub go live

How LumioPro Can Help You Prepare

To stay ahead of the change, businesses should:

✔ Review pricing strategies to absorb or pass on duty costs

✔ Audit tariff classifications to optimise item structuring

✔ Ensure VAT and duty are calculated correctly at checkout

✔ Work with partners experienced in EU customs compliance

At LumioPro, we’re closely monitoring EU customs reforms and helping businesses adapt — from duty compliance to fulfilment strategy optimisation — so you can continue selling into the EU with confidence.