EU Cancels Duty-Free Status for Small Packages Under €150, Driving Up Cross-Border Seller Costs
Starting July 2026, the EU will revoke the duty-free policy for imports of small packages under €150. Direct mail packages will incur fixed customs duties and processing fees, increasing costs by €5-8 per item. Many sellers are forced to raise prices, leading to decreased conversion rates for low-priced listings and prompting a shift towards overseas warehouse fulfillment models.
What are the key facts?
- 1Effective date: July 2026
- 2Policy change: Elimination of €150 duty-free status
- 3Additional cost: €3-5 per package in duties and fees
What happened?
The EU regulation (EU)2026/382 eliminates duty-free status for small packages under €150. Increased costs for direct mail items compel sellers to raise prices or delist low-margin SKUs, exposing a critical shift in the industry, where overseas warehouses become essential for tax avoidance.
What does this mean for cross-border sellers?
Sellers relying on low-priced direct mail face survival challenges; consider multi-item bundle sales to offset costs or accelerate the switch to European overseas warehouses to maintain price competitiveness.