EU to End Duty-Free Treatment for Low-Value Goods in July 2026
Starting July 1, 2026, the EU will abolish duty-free treatment for B2C imports valued below €150 and require parcels outside the IOSS model to undergo individual customs clearance, significantly raising compliance requirements.
What are the key facts?
- 1Effective date: July 1, 2026
- 2Policy: End duty-free treatment below €150 and impose a fixed €3 customs duty
What happened?
Under the EU Customs Reform Act, the EU will phase out duty-free treatment for B2C imports valued below €150 and require parcels outside the IOSS model to undergo individual customs clearance. From July 1, 2026, goods valued below €150 will no longer qualify for duty-free treatment; instead, a fixed €3 customs duty will be charged per order. The policy will significantly raise compliance requirements for cross-border ecommerce, and sellers need to assess tax costs and prepare their customs-clearance processes in advance.
What does this mean for cross-border sellers?
Sellers need to reassess pricing and logistics plans for the European market and ensure IOSS compliance. Without adjustments, parcels may face customs-clearance delays that affect the customer experience. Highest-priority action: update your product pricing strategy this week to prepare for the upcoming duty changes.