Major EU Customs Update: €3 Duty on Low-Value E-Commerce Imports Starting July 2026
Andrew Thurston · Posted on: December 22nd 2025 · read
On 12 December 2025, EU Member States reached agreement on a major reform of the EU’s customs treatment of e-commerce parcels. From 1 July 2026, all goods entering the EU with a value of €150 or less will be subject to a flat €3 customs duty per item. This represents one of the most significant changes to EU customs rules in decades and marks a clear shift in how low-value e-commerce imports will be treated going forward.
The measure follows the earlier announcement of a €2 handling fee per consignment, due to be introduced in November 2026, and mirrors broader international developments, including the recent decision by the United States to remove its own low-value import duty exemption. Together, these changes signal a global move away from duty-free treatment for high volumes of small parcels entering domestic markets.
Why This Change Matters
At its core, the new €3 duty closes the long-standing “de minimis” exemption that allowed low-value goods to enter the EU without customs duties. That exemption had increasingly been criticised for distorting competition, particularly as e-commerce volumes surged and non-EU sellers were able to price goods more aggressively than EU-based businesses.
By applying a uniform charge to all low-value parcels, the EU aims to create fairer competitive conditions, reduce incentives for undervaluation, and improve compliance across the sector. The reform is also intended to strengthen consumer protection by addressing fraud risks associated with the high volume of small consignments and to support customs authorities struggling with capacity and enforcement challenges.
More broadly, the measure forms part of the EU’s wider customs modernisation agenda. It is designed to pave the way for the EU Customs Data Hub and a more digital, centralised customs framework expected to be fully operational by 2028.
An Interim Measure Ahead of Full Reform
Importantly, the €3 duty is explicitly an interim measure. It is intended to bridge the gap until the full EU customs reform package is implemented, including the elimination of the €150 threshold and the launch of the Customs Data Hub around 2028.
The timing of this agreement reflects growing pressure from several Member States, including France and the Netherlands, which had indicated plans to introduce their own national charges on low-value e-commerce parcels. The European Commission was keen to avoid a fragmented, country-by-country approach, and the agreed EU-wide measure provides a coordinated solution during the transition period.
Impact on Consumers and the E-Commerce Market
For consumers, the combined impact of the €3 customs duty and the forthcoming €2 handling fee is likely to result in higher prices at checkout. Whether these additional costs will meaningfully reduce the volume of low-value imports, or simply be absorbed by consumers, remains uncertain.
Experience in the US suggests that higher import-related costs can encourage some consumers to shift towards alternative retailers. However, in the EU, where online prices fluctuate frequently and cross-border e-commerce is deeply embedded in consumer behaviour, any immediate change in purchasing patterns may be limited.
That said, large Chinese e-commerce platforms are already adapting their supply chains by increasing the use of EU-based warehousing. This indicates an acceptance that per-parcel costs may affect demand and that faster delivery times will become an even more important competitive differentiator, particularly when competing with established players such as Amazon, which already operates highly efficient fulfilment networks across the EU.
Implications for UK Businesses
The impact on UK businesses will vary significantly depending on their sales and fulfilment models. For UK sellers operating through Amazon FBA, the change is expected to be relatively limited. These businesses typically import goods into the EU in bulk, meaning their products are already subject to standard EU customs duties and processes. As a result, the introduction of a flat €3 duty on low-value parcels is unlikely to materially alter their overall cost structure.
In contrast, UK businesses selling directly to EU consumers via platforms such as Shopify are likely to be more affected. Individual low-value parcels shipped directly to customers will now attract additional customs charges, and platforms will need to ensure these costs are clearly presented at the point of sale. For lower-value items in particular, these extra charges could make sales commercially unviable and place UK sellers at a competitive disadvantage compared to EU-based competitors.
As a result, some UK businesses may reassess their fulfilment strategies. Holding stock within the EU and selling through an in-market fulfilment model may become increasingly attractive, helping to reduce per-item customs costs and minimise border friction. This approach is likely to be especially beneficial for sellers of low-duty goods such as books, toys, and games, where the new flat fees may exceed the customs duties and compliance costs associated with importing stock in bulk.
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