As part of a comprehensive reform of the EU customs framework, a new EU customs duty is introduced for low-value goods. From 1 July 2026, the customs duty exemption for consignments below EUR 150 will be abolished in the European Union, bringing significant changes to the customs clearance of low-value goods imported from third countries. The measure primarily affects those registered in the Import One Stop Shop (IOSS) system. The abolition of the exemption was originally linked to the launch of the EU Customs Data Hub in 2028, however, a transitional provision adopted by the European Council at the end of last year brought forward its entry into force.

The introduction of the new EU customs duty is driven by fiscal, competition law, consumer protection, and administrative considerations. In addition, the current exemption threshold has encouraged abusive practices such as undervaluation and artificial splitting of consignments, while effective enforcement by authorities has become practically impossible.

Steps in introducing the new EU customs duty

1. Transitional flat-rate duty from July 2026

Under the new EU rules, the customs duty exemption for import consignments below EUR 150 will be replaced by a transitional flat-rate duty of EUR 3 between 1 July 2026 and 1 July 2028. This transitional charge applies to goods arriving via courier, commercial, and postal channels alike.The EUR 3 duty is not charged per parcel, but per product category within the consignment, following the logic of tariff subheadings. The amount is included in the VAT base, which increases VAT liabilities. Businesses will therefore need to adopt new methods for calculating the import VAT base.

2. Handling fee from November 2026

From November 2026, an EU-wide handling fee is expected to be introduced for low-value consignments. Some Member States (e.g. Romania, Italy, France) have already implemented similar national fees.

3. Tariff-based duties from July 2028

Following the planned launch of the EU Customs Data Hub in July 2028, the transitional flat-rate duty will be replaced by standard EU customs duties based on tariff classification, supplemented by a uniform EU handling fee.

Why is the new regulation necessary?

The dismantling of the de minimis threshold and the introduction of the new EU customs duty were made inevitable by the explosive growth of low-value e-commerce imports. According to the European Commission:

• In 2022: 1.39 billion consignments
• By the end of 2025: approximately 5.9 billion consignments
• In 2025: 97.9% of all imported items fell into this category, while accounting for only 2.1% of total import value

93% of these goods originated from China.

Another major driver of the stricter regulation is product compliance risk:

• more than half of electronic products did not comply with EU standards
• 84% of tested samples were found to be unsafe
• non-compliance rates: cosmetics 65%, PPE 60%, food supplements 63%

The abolition of the customs exemption is therefore not only a revenue measure, but also a market surveillance response.

Scope of the EUR 3 transitional duty

The new EU customs duty of EUR 3 per item mainly affects businesses using the EU’s special VAT scheme, the Import One Stop Shop (IOSS). This system allows importers to declare and pay the VAT on non-excise goods valued at up to EUR 150 imported from third countries through a single Member State.

In practice, the affected parties primarily include:

• non-EU online retailers, digital marketplaces and platforms using IOSS
• IOSS-registered traders
• indirect representatives of IOSS-registered traders
• logistics providers handling customs clearance

Given that such low-value transactions conducted via IOSS represent a significant share of EU e-commerce imports, the changes directly impact the largest market players.

Although the precise legal scope of goods covered by the new EU customs duty is still subject to legislative clarification, it is already clear that it will primarily apply to consignments related to online sales. The concept of distance selling under VAT rules will likely serve as the main reference point.

What does this mean for customs procedures?

Although the provisions are not yet final, the draft legislative amendment already addresses technical and administrative changes to customs procedures, particularly regarding customs declarations:

Reduced data set H7 customs declaration

• limited to e-commerce B2C distance sales transactions
• remains applicable for goods with an intrinsic value not exceeding EUR 150, regardless of IOSS usage or whether postal or express procedures are applied
• not applicable to goods subject to prohibitions and restrictions (P&R)

Full data set H1 customs declaration

• mandatory for all non-distance sales transactions (typically B2B)
• mandatory for all goods subject to P&R

The H1 procedure continues to apply standard customs duties and existing valuation rules, including preferential tariffs based on international agreements. However, in distance sales scenarios, the H1 procedure does not exempt goods from the EUR 3 flat-rate customs duty.

Technical and system-level changes

The regulation also introduces significant technical clarifications. It defines the concept of an “item” as one or more goods sharing the same tariff classification, description and, where applicable, origin. This is crucial, as the EUR 3 duty is calculated based on these units.

Furthermore, the coding system will also change: for example, the F53 additional procedure code will be introduced, which is specifically linked to e-commerce, while certain existing codes – such as C07, indicating customs duty exemption – will be phased out. In addition, new TARIC document and reference codes (such as C127, C128, C129, and Y081), as well as a new preference code element, will be introduced for the calculation of the EUR 3 new EU customs duty under the H1 procedure.

The introduction of the new EU customs duty means that businesses must not only revise their IT and customs systems, but also review contractual structures, pricing models and IOSS processes. They must prepare separately for the transitional period between 2026 and 2028 and the subsequent standard tariff environment. If you need expert support, our customs advisers are ready to assist.

This article is for general information purposes only and should not be considered as advice.