From 1st July 2026 all parcels valued at less than €150 Euros will be charged €3 duty per item to enter the EU
This affects all UK origin goods
- If you sell goods to the EU imported in consignments with a value of £135 or less (known as low value goods) from countries outside the EU and Northern Ireland, this affects you.
UK businesses selling e-commerce B2C in the EU using IOSS will be impacted by this €3 levy
What does this mean for cross-border e-commerce businesses in and outside the EU.
Many non-EU country sellers and marketplaces have used the low value exemption to avoid customs duties, giving them a competitive advantage over EU-based importers and retailers paying duties.
From 1st July 2026 all parcels valued at less than €150 Euros will be charged €3 duty per item to enter the EU.
For example:
A parcel containing one smartphone, a charger, and earphones will be treated as three distinct items, each with its own tariff heading, resulting in a total duty of €9.
Multiple identical units of the same tariff heading attract the duty on a per unit basis. This item-level approach promotes clarity and reduces opportunities for manipulation through invoicing or packaging.
This means all parcels entering the EU are dutiable and subject to full customs formalities.
EU customs authorities will require the same level of declarations as all over imports such as Harmonised System (HS) codes, origin, value, and seller/shipper EORI numbers.
How to prepare
1. Audit your supply chain – how many shipments rely on the €150 exemption.
2. Review pricing and shipping models – Sellers and marketplaces may need to review their pricing strategies, promotional offers, and free shipping policies ahead of the 1st July. Will you build the duty costs into shipping, the cost of goods or final checkout price.
3. Look at consolidating shipments differently or changing fulfilment location if duties make non-EU shipping less viable. Our TPS Netherlands warehouse is well placed for EU fulfilment, speak to us about options.
4. Incoterms will you use Delivered at Place (DAP) where the buyer pays import duties on arrival, or switch to Delivered Duty Paid (DDP) so you or your business partners handle duties ahead of delivery for the preferred consumer experience.
5. Customs Forms will be needed. Accurate HS codes, country of origin, seller/shipper EORI numbers, value declarations, and product descriptions.
You will need to supply clear descriptions of your goods. What are the goods; What are they made of; What are they used for?
Shipments with vague descriptions can be delayed.
Vague Description – Nuts
Clear Description – Hexagonal aluminium bicycle nut
6. If you sell via marketplaces, ensure you understand who has liability for customs duties and that the marketplace’s systems support the necessary data flows.
If you’re currently using the Import One-Stop Shop (IOSS) scheme* assess if and how the new customs duty regime interacts with your VAT compliance management.
Can I avoid the new e-commerce EU customs levy?
Using an EU warehouse such as our TPS Dutch facility can help avoid the new €3 per item EU customs duty on low-value e-commerce parcels.
How an EU warehouse helps
When you ship goods in bulk from a non-EU country to a warehouse within an EU member state, the import duties and VAT are handled once during that initial bulk importation.
Once the goods have cleared customs and are in “free circulation” within that first EU country, they can move and be sold freely throughout the entire EU single market without any further customs duties or checks.
But to act as an importer, you must register for VAT in Europe, we recommend you speak to your accountant for tax advice.
At TPS Global Logistics we offer European fulfilment, our Aalsmeer warehouse is 10 minutes from Schiphol airport and close to Rotterdam port.
We offer ecommerce fulfilment, spotless storage, custom pick and packing, returns handling and freight forwarding.
Centrally placed in the heart of the EU: Our warehouse is located in one of the most prosperous regions in Europe, ideal for driving growth and reaching customers efficiently. Aalsmeer provides access to over 160 million consumers within a 500km radius. Your products can quickly reach customers all over the EU.
There are lots of benefits to using the Netherlands as your gateway into Europe. Download our guide to business growth in Europe.
Outstanding Infrastructure: The Netherlands boasts world-class road, rail, and waterway networks, ensuring seamless movement of goods to key European markets.
Optimised VAT cash flow: The Netherlands has a number of practical solutions to minimise your compliance burden. If you import via the Netherlands, you can take advantage of the import VAT deferment (also known as ‘the reverse charge’)
Avoid Tariffs: Under the “rules of origin”, products that are not made in Britain, such as Chinese-produced goods, attract tariffs when re-exported from the UK into the European market.
TPS will handle VAT and customs requirements on your behalf, simplifying compliance and making cross-border trade easier.
EU-established sellers operating under OSS (the One-Stop Shop scheme) are unaffected by the €3 duty, which heightens the competitive advantage of having tax and commercial operations inside the EU.
Why are the EU introducing these changes and are they permanent?
The EU want to modernise customs to accommodate the growing e-commerce marketplace.
According to the EU Council, IOSS-registered non-EU sellers account for an estimated 93% of all cross-border e-commerce imports into the EU.
They want to tackle the influx of small parcels currently not liable for customs duties into the EU – to remove unfair competition for EU sellers and address potential environmental concerns.
According to the European Commission, around 4.6 billion shipments valued at under €150 entered the EU in 2024, with around 91% originating from China.
All goods imported from non-EU countries will be subject to customs duties, regardless of value.
However this measure is temporary, so businesses may also need to prepare for additional adjustments once the permanent system is introduced.
July 1, 2026, is the effective date and the €3 duty will remain in place until a permanent solution is implemented.
Separately, the broader customs reform agenda includes consideration of a €2 handling fee designed to cover the administrative costs associated with processing high volumes of low-value parcels.
Unlike the €3 customs duty, the €2 fee — still under negotiation — is envisaged to be charged per parcel or consignment, regardless of contents. The handling fee is legally distinct from customs duty and would not directly affect the tariff-based application of the €3 charge. If adopted, this measure will take effect in 2026. It is expected to affect international e-commerce purchases from platforms such as AliExpress or Temu, adding a flat €2 administrative charge to each parcel, regardless of value.
Contact us to discuss your ecommerce fulfilment options on the form below or call 01622 237979 email sales@tps-global.com
*IOSS stands for Import One-Stop Shop. It’s a scheme that was introduced to simplify VAT on low-value imports of less than €150 from non-EU countries to EU consumers.
How it works – Sellers only charge VAT to their customers at the point of sale. Because of this, buyers are not required to pay import VAT at customs if the seller uses IOSS.
- When using IOSS, VAT is collected at the point of sale, so customers won’t face unexpected charges at delivery.
- Less documentation means customs clearance is faster.
- Businesses are only required to submit a single monthly VAT return to the member state where registered.
Contact us for freight, storage and fulfilment solutions