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Major EU Customs Update: €3 Duty on Low-Value E-Commerce Imports Starting July 2026

Andrew Thurston · Posted on: December 22nd 2025 · read

On December 12, 2025, EU Member States reached a key agreement to overhaul customs rules for e-commerce parcels. Starting July 1, 2026, all parcels entering the EU valued at €150 or less will incur a flat €3 customs duty per item. This new measure marks one of the most significant updates to EU customs regulations in decades, following the earlier announcement of a €2 handling fee per consignment, set to be introduced in November 2026. It also comes on the heels of the US decision to end its low-value import duty exemption.

Why This Matters:

Eliminating the “De Minimis” Exemption: This new duty closes the long-standing “de minimis” gap, which previously allowed many small shipments to enter duty-free, providing a level playing field for EU businesses.

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Industries

Retail, Consumer and Hospitality

Services

Customs Compliance Audit

Fairer Competition: The reform aims to address unfair pricing advantages enjoyed by non-EU sellers by ensuring that all businesses are subject to the same customs duties.
Enhanced Consumer Protection: The move also strengthens efforts to combat undervaluation, fraud, and compliance issues that have plagued cross-border trade, especially with small parcels.
Modernizing Customs: This update is part of broader efforts to modernize the EU’s customs framework in preparation for the EU Customs Data Hub and further reforms scheduled for 2028.

As e-commerce continues to expand rapidly, the new rules aim to provide a fairer, more transparent system for cross-border trade—benefiting both businesses and consumers within the EU Single Market.

Interim Measure Ahead of Full Customs Reform:

It is important to note that the €3 duty is an interim measure, designed to bridge the gap until the full EU customs reform package takes effect, including the launch of the EU Customs Data Hub and the eventual elimination of the €150 exemption by 2028. This temporary solution was driven by concerns from several Member States—such as France and the Netherlands—that planned to implement their own interim charges for low-value imports ahead of the EU-wide system. The Commission was keen to avoid fragmented, national approaches, so the new EU-wide system ensures consistency across Member States.

Impact on Consumers:

"The €3 duty, combined with the €2 handling fee, will likely result in higher costs for consumers, potentially leading to price increases on many e-commerce goods. However, whether this will reduce the volume of low-value imports or simply raise consumer prices is uncertain."

Andrew Thurston, Customs Duty & Indirect Tax Consultant

The US market provides some insights: when import-related costs rise, consumers may shift towards alternative retailers. However, given that online prices in the EU fluctuate regularly and cross-border shopping has become ingrained in consumer behavior, significant changes in purchasing patterns may take time.

Furthermore, large Chinese e-commerce companies are already adjusting their supply chain strategies by establishing local warehouses. This suggests an understanding that increased costs could impact demand, and faster delivery times could become an even more crucial competitive advantage—particularly against players like Amazon, which already has an efficient fulfilment network in place.

Major EU Customs Update: €3 Duty on Low-Value E-Commerce Imports from July 2026

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.

Industries

Retail, Consumer and Hospitality

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.