The European Council has formally confirmed a major change to the way low-value e-Commerce shipments entering the EU will be treated for customs duty purposes.
From 1 July 2026, parcels valued at under €150 will no longer benefit from duty-free entry.
Instead, a fixed customs duty of €3 will apply to the vast majority of low-value goods entering the EU via cross border e-Commerce.
This decision marks a significant shift in EU customs policy and will have wide ranging implications for non EU sellers, marketplaces, and logistics providers.
What has been agreed?
The EU Council has agreed to introduce a temporary flat-rate customs duty of €3 per item for goods valued below €150 entering the EU.
Key elements of the measure include:
• The €3 duty will apply per item, based on the product’s tariff heading, even where multiple items are shipped within a single consignment
• The measure applies primarily to non EU sellers registered under the Import One Stop Shop (IOSS)
• It is expected to cover approximately 93% of all e-Commerce flows into the EU
• The duty will be introduced from 1 July 2026
This represents the effective removal of the long standing customs duty de minimis relief for low value shipments.
Why is the EU introducing this change?
According to the European Council, the decision is driven by several key concerns:
• Unfair competition faced by EU based sellers who are subject to full customs and regulatory requirements
• Fraud and undervaluation linked to low value consignments
• Health and safety risks, including non compliant products entering the EU market
• Environmental impact associated with the growing volume of small parcel imports
Until now, goods valued below €150 could enter the EU free of customs duty, a system that has increasingly been viewed as outdated given the rapid growth of global e-Commerce.
Important clarification: this is not a handling fee
It is important to note that this €3 customs duty is not the same as the proposed “handling fee” that has been discussed separately as part of wider EU customs reform and EU budget negotiations.
The €3 charge is a customs duty, not a logistics or processing fee, and will be applied within the customs framework.
Is this a permanent solution?
No. The €3 flat rate duty is intended as a temporary measure.
In November 2025, the EU agreed a longer term reform that will fully remove the €150 customs duty relief threshold altogether.
Once that reform is implemented:
• Normal EU tariff rates will apply to all goods, regardless of value
• Product specific duty rates will replace the flat €3 charge
The European Commission will also review whether the €3 rate should be extended to sellers not registered under IOSS.
What does this mean for e-Commerce sellers and marketplaces?
For businesses selling into the EU, this change has direct implications for:
• Landed cost calculations and pricing models
• Marketplace fee structures and seller margins
• Customs compliance and data accuracy
• Customer experience, particularly around transparency of duties and charges
While July 2026 may seem some way off, businesses with EU facing e-Commerce operations should already be factoring this change into medium and long term planning.
How UKP Worldwide can help
At UKP Worldwide, we are already working with e-Commerce sellers, marketplaces and logistics partners to:
• Assess the cost and operational impact of the €3 duty
• Review customs compliance and IOSS strategies
• Optimise shipping, returns and fulfilment models ahead of 2026
With further EU customs reform still to come, early preparation will be key.
If you would like to discuss how this change could affect your EU shipping strategy, get in touch with the UKP Worldwide team.
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