Philippines Trade Department Urges Exporters to Bundle Shipments to Address EU New Tariffs
The EU has eliminated the tax-free policy for packages under €150 starting July 1. The Philippines Trade Department advises exporters to bundle shipments to EU warehouses or optimize product combinations to reduce the number of tariff codes per package, thereby lowering compliance costs. Sellers need to pay attention to IOSS declaration processes to address the fixed €3 tariff per code during the transition period.
What are the key facts?
- 1EU eliminates tax exemption for packages under €150
- 2Effective from July 1
- 3During the transition period (2026-2028), a fixed tariff of €3 per code will apply to IOSS declared packages
What happened?
The EU officially abolished the tax exemption for small packages under €150. As a transitional measure, from July 1, 2026, to July 1, 2028, packages declared through the IOSS framework will incur a fixed tariff of €3 per code. Government agencies advise exporters to bundle shipments to warehouses within the EU or adjust their product mix strategies to minimize extra costs arising from tariff classifications.
What does this mean for cross-border sellers?
Sellers need to recalibrate logistics and tariff costs for shipments to the EU. It is recommended to prioritize using overseas warehouses to spread tariff expenses.