The Council of the EU has agreed to apply a fixed customs duty of €3 (£2.63) on small parcels valued at less than €150 (c. £132) entering the EU from 1 July 2026.
The temporary duty is expected to cover 93% of all e-commerce flows to the EU.
The measure comes in responses to the fact that small parcels currently enter the EU duty free, “leading to unfair competition for EU sellers, health and safety risks for consumers, high levels of fraud and environmental concerns”.
From 1 July, the rate will be applied to all goods entering the EU for which non-EU sellers are registered in the EU’s import one-stop shop (IOSS) for value-added tax purposes.
It is distinct from the proposed ‘handling fee’, which is under discussion as part of wider reforms to the EU’s customs system from 2028.
According to the council of 27 governments, the €3 customs duty will remain in force until a permanent framework is introduced. At that point, all goods under €150 will be eligible for customs duty at the normal EU tariffs for individual products.
William Bain, head of trade policy at the British Chamber of Commerce explained that the flat customs duty will have a “significant impact” on British Businesses.
“Although UK originating products will still be tariff free, they will now face customs fees and potentially separate handling charges levied by individual EU countries. This extra cost will make goods from Great Britian less attractive to both businesses and people in the EU and squeeze profit margins,” Bain said.
The proposed reforms follow similar moves by the US and UK.
On 29 August, the USA scrapped its ‘de minimis’ exemption for good under US$800 (c. £600), making them subject to full customs duties and fees.
Meanwhile, in its Autumn Budget the UK government announced plans to abolish customs duty relief on imported goods worth up to £135 by March 2029.
“Companies relying on cheap small-parcel imports need to prepare for higher costs and more complex customs administration. For many, this will be the end of the ‘friction-free’ model they’ve built their e-commerce operations around,” commented Jaspal Dhillon, VAT partner at Lubbock Fine.
