EU Removes Customs Duty Exemption for Parcels Under €150
The EU removed the customs-duty exemption for parcels under €150, introduced a temporary €3 customs duty per item, and plans to introduce a small-parcel handling fee.
What are the key facts?
- 1The EU removed the customs-duty exemption for parcels under €150 from July 1, 2026
- 2Low-value goods are subject to a temporary €3 customs duty per item
- 3The EU plans to introduce a small-parcel handling fee from November 1, 2026
- 4More declaration, tax-payment, and product-compliance responsibilities shift to platforms, sellers, or carriers
What happened?
The European Commission’s latest customs reform page confirms that, from July 1, 2026, the EU removed the customs-duty exemption for low-value parcels not exceeding €150 and introduced a temporary €3 customs duty per item for low-value goods purchased online. The EU also plans to introduce a small-parcel handling fee from November 1, 2026; the specific amount will be determined by a subsequent delegated act. The new rules shift more responsibility for customs declarations, tax payments, and product compliance to non-EU platforms, sellers, or carriers rather than leaving consumers to bear those responsibilities alone. The change affects cross-border sellers shipping to EU consumers from non-EU regions including China, the United States, Japan, and the United Kingdom, particularly sellers of low-priced products, direct-mail parcels, apparel, jewelry, phone accessories, small home goods, and toys. Sellers need to recalculate tax-inclusive prices, IOSS or platform tax-collection arrangements, HS codes, origin, product-safety documentation, and return costs. They can no longer operate on the previous assumption that parcels under €150 are generally exempt from customs duties. If a platform assumes importer or distance-selling responsibilities, it may also require sellers to provide more complete product data and compliance documents.
What does this mean for cross-border sellers?
After the EU removed the customs-duty exemption for parcels under €150, the tax-inclusive pricing, declarations, and profit structure of low-priced direct-mail products are affected. Sellers also need more complete HS codes, origin, product-safety, and tax-payment arrangements to meet increased compliance requirements from platforms or carriers.
What should sellers do now?
- 1Identify low-priced direct-mail products shipped to the EU, recalculate tax-inclusive prices, gross margins, and return costs using the €3 customs duty per item from July 1, 2026, and prepare an SKU-level price adjustment table.HS duty estimate
- 2Review the HS code, origin, IOSS or platform tax-collection arrangement for each EU product, complete the documentation for apparel, jewelry, accessories, small home goods, and toys, and prepare a missing-items list.VAT quick lookup