This holiday season is the first peak for selling to the EU under the new rules. Since 1 July 2026, low-value parcels pay a €3 customs duty per item. From 1 November 2026, a €2 Union handling fee per item and mandatory product identifiers are added. If your store settings still assume duty-free parcels under €150, your EU customers may face unexpected charges on delivery, refuse parcels, or wait at customs.
Work through these ten points before Black Friday.
1. Recalculate your landed cost per order
For a consumer parcel worth €150 or less, each distinct item now costs €3 duty plus €2 handling fee, before VAT. Ireland’s Revenue gives an example: a €10 parcel with three different products costs €15 in charges plus VAT, while two identical pens count as one item and cost €5. Above €150, normal duty rates apply plus €2 per item. Run your five most common EU baskets through this calculation. Background: The EU’s €150 duty exemption is gone: what the €3 per-item customs duty means for your shop and 1 November 2026 EU changes: handling fees and new data requirements on low-value parcels.
2. Decide who pays: duty-paid or duty-unpaid
You have two options:
- Duty-paid (DDP): you pay duties, fees and taxes, and the customer pays nothing on delivery. FedEx calls this “Bill Shipper” combined with DDP terms (FedEx). DHL Express calls it DTP (Duty Tax Paid) and confirms it covers the €2 fee (DHL).
- Duty-unpaid (DAP / DTU): the customer pays the carrier before delivery. Revenue warns consumers that in this case the courier or postal service will ask for the duty and fee before handing over the parcel.
For low-value consumer orders, duty-paid usually means fewer refused parcels. Whichever you choose, configure it in your carrier account and state it clearly at checkout.
3. Show the real total price at checkout
If you ship duty-paid, show the customer one final price that includes VAT, duty and the handling fee, or list them as clear line items. Revenue describes the checkout model this way: both charges are shown and the price paid is the final price, with no extra charges on delivery. If you ship duty-unpaid, say clearly on product and checkout pages that the customer will pay import charges on delivery.
4. Settle your VAT setup (IOSS or not)
If you sell from your own website, decide whether to use the Import One-Stop Shop. Most non-EU sellers need an EU intermediary to use it (European Commission). If you sell through marketplaces, check whether the platform already collects the VAT as deemed supplier. Full guide: IOSS explained: how VAT works on EU orders under €150 and whether you should register.
5. Check the HS code on every SKU
The €3 duty and €2 fee are charged per declaration line, and goods with different tariff subheadings cannot be grouped on one line, according to the Commission’s guidance. Wrong or vague codes can lead to wrong charges and delays. HS codes will matter even more once normal duty rates replace the €3, currently planned from 1 July 2028. See EU customs reform timeline 2026–2028.
6. Add product identifiers (PIDs) to your catalogue
From 1 November 2026, consumer parcels up to €150 must carry, for each product, a merchant identifier (such as your SKU), a manufacturer identifier (such as a model number), and a standardised identifier such as an EAN barcode where one exists. These requirements are set out in the Commission guidance. Ask suppliers now for any missing codes. DHL warns that missing PIDs can cause clearance delays, holds or returns to origin.
7. Update carrier and shipping-software settings
Make sure your shipping app or carrier integration sends:
- HS code, clear product description and value for each line;
- all three PID fields, or the “no standardised identifier” option;
- your IOSS number, through the carrier’s electronic data and not printed on the customer invoice;
- the buyer’s full name, email address and mobile number, which DHL lists as required shipment data.
FedEx says some of its older shipping software will only support electronic PID submission from March 2027, and suggests printing PIDs on the commercial invoice until then. Check with your carrier.
8. Rethink order splitting and bundles
The Commission guidance treats goods from one order shipped separately as separate consignments, so each parcel pays its own per-item charges. Shipping in one parcel where possible, and favouring single-category bundles, reduces the number of €3 and €2 charges. Do not split orders to stay under €150. The guidance describes anti-abuse checks for this.
9. Update your returns and refunds policy
The €2 handling fee is non-refundable, even if delivery fails or the parcel is refused (Dutch Customs). Revenue says the €3 duty is also non-refundable unless the goods are faulty. Decide whether you will absorb these costs on returns, and say so in your returns policy. Separate EU consumer-law rules on returns may also apply; this article does not cover them, so check with a qualified adviser.
10. Tell your customers and your team
Add a short shipping FAQ for EU customers: who pays import charges, what the total includes, and expected delivery times. Brief your support team on the €3 and €2 charges so they can answer “why was I charged on delivery?” questions. Ask your carrier for its holiday cut-off dates to the EU, because extra data checks this season may add time.
Quick recap
- Recalculate landed cost (€3 + €2 per item).
- Choose duty-paid or duty-unpaid.
- Show final prices clearly.
- Settle IOSS or marketplace VAT.
- Verify HS codes.
- Add PIDs.
- Update carrier data feeds.
- Consolidate parcels and bundle carefully.
- Revise your returns policy.
- Update your FAQ and brief your support team.
Sources
- European Commission, Guidance on the EUR 3 customs duty and Union handling fee: https://taxation-customs.ec.europa.eu/document/download/053e5b4e-f0be-4f20-9a23-3e3b659a6676_en?filename=Customs%20Guidance%20on%20EUR%203%20customs%20duty.pdf
- European Commission, Register to OSS: https://vat-one-stop-shop.ec.europa.eu/one-stop-shop/register-oss_en
- Revenue (Ireland), How the fee applies: https://www.revenue.ie/en/customs/individuals/union-handling-fee/how-the-fee-applies.aspx
- Dutch Customs, Handling fee for e-commerce: https://www.douane.nl/en/themes/import-and-export/import/e-commerce/handling-fee-for-e-commerce/
- FedEx, EU customs changes: https://www.fedex.com/en-ca/shipping-services/international/regulatory/eu-customs-changes.html
- DHL Express, EU customs changes 2026: https://www.dhl.com/discover/en-th/logistics-advice/import-export-advice/eu-customs-changes-2026
Last updated: 29 October 2026. This article is general information, not legal or tax advice.