EU Cross-Border E-commerce New Regulation: Elimination of Low-Value Exemption Starting July 1
The EU officially implements customs reform, eliminating the tax exemption for packages valued below 150 euros. Starting July 1, 2026, all e-commerce packages entering the EU must pay customs duties. During a transition period (until July 2028), packages compliant with the IOSS framework will be subject to a fixed fee of 3 euros each, aimed at combating undervaluation practices and ensuring fair competition.
What are the key facts?
- 1Effective date: July 1, 2026
- 2Policy content: Elimination of exemption for packages under 150 euros
- 3Transition period fee: 3 euros fixed duty per package
What happened?
The EU customs reform aims to unify systems among member states and ensure fairness in e-commerce imports. With the elimination of the tax exemption limit, all non-EU imported goods must be declared. A fixed fee of 3 euros will be applied during the transition period, with plans to gradually shift to standard customs rates in the future.
What does this mean for cross-border sellers?
Cross-border sellers must recalculate costs for entering the EU market, optimize product pricing strategies, and ensure accuracy in HS codes and declaration data to avoid customs clearance delays.