EUCBT

Author: EUCBT Editors

  • EU customs reform timeline 2026–2028: the EU Customs Data Hub, the new EU Customs Authority, and when standard duty rates replace the flat €3

    The €3 duty and the €2 handling fee are only the first visible parts of a much larger change. In September 2026 the EU adopted what the European Commission calls the most comprehensive reform of the EU Customs Union since it was founded in 1968. It creates a new EU Customs Authority, a central EU Customs Data Hub, and new responsibilities for online sellers and platforms. This article sets out what is scheduled, when, and what it means for a small non-EU seller.

    The reform in one paragraph

    The legal basis is Regulation (EU) 2026/2108 of 16 September 2026, which establishes a new Union Customs Code and the European Union Customs Authority (as cited by Dutch Customs). The Commission says the reform was published in the Official Journal in September 2026 and is being implemented gradually. It rests on three pillars: smarter risk management, a modern framework for e-commerce, and a closer partnership with business through “Trust & Check” trusted-trader status.

    What is already in force

    • 1 July 2026, €3 temporary customs duty. The €150 duty exemption ended and a flat €3 per item applies to distance-sale consignments up to €150. See The EU’s €150 duty exemption is gone.
    • 1 November 2026, €2 Union handling fee and mandatory product identifiers. The fee applies per item at any value, and PIDs become mandatory for consignments up to €150. See 1 November 2026 EU changes.

    The EU Customs Authority (EUCA)

    The reform creates a new decentralised EU agency, the EU Customs Authority, based in Lille, France. According to the Commission, it will coordinate risk management across the 27 national customs administrations, support joint operations and information-sharing, and manage the EU Customs Data Hub. The Commission expects around 285 staff and has set up a task force to prepare the agency.

    Timing: the Commission’s “next steps” say EUCA will be established in 2027, with some activities starting that year.

    What it means for you: nothing to file directly. In practice, risk analysis at EU level means inconsistent or incorrect data (wrong HS codes, undervaluation, missing PIDs) is more likely to be spotted, wherever your parcels enter the EU.

    The EU Customs Data Hub

    The Data Hub will be a single digital interface for customs operations across the EU. Businesses will submit customs and product data once, through one platform, instead of dealing with national systems. The Commission says there are currently more than 111 separate national IT interfaces and systems.

    The Commission gives this rollout:

    • 2028: e-commerce operators gain access. The Commission says use of the Data Hub becomes mandatory for e-commerce on 1 July 2028.
    • 2031: other businesses can start using it voluntarily.
    • 2034: mandatory for all traders, from 1 March 2034.

    Under the new model, online platforms and sellers become “importers for distance sales”. The Commission says they will report sales to EU consumers through the Data Hub immediately after they happen, so customs can assess risk before the goods arrive. They will also be liable for duties and fees, and for product compliance, for example by identifying a responsible economic operator in the EU.

    When normal duty rates replace the €3

    This is the date most sellers care about. Official sources agree on the plan:

    • The Commission says the €3 applies until 1 July 2028, after which normal customs duties apply depending on the type of goods.
    • The Council of the EU says the €3 applies from 1 July 2026 to 1 July 2028, “may be extended as appropriate”, and will be replaced by normal tariffs once the Data Hub is operational, “currently expected in 2028”.
    • A Council working document says that if the Commission finds the Data Hub will not be ready by that date, it must propose extending the transitional measure.

    Bottom line: 1 July 2028 is the legal end date for the flat €3, but it depends on the Data Hub being ready. An extension is possible. We will update our Rule Change Tracker if that happens.

    When normal rates apply, low-value parcels will pay the duty for each product’s tariff code, from the first euro. Depending on the product, that could be more or less than €3 per item. The Irish Revenue uses today’s rules for parcels over €150 as an illustration: jeans at 12% and running shoes at 16.9%. For cheap single-category orders, normal rates may cost less than €3. For higher-value items in high-duty categories, they may cost more. Accurate HS classification will matter even more than it does now.

    Other dates in 2028

    • Customs warehouses for distance sales: the Commission guidance says this new type of warehouse becomes available from 1 July 2028, and goods sold from such warehouses will pay a lower handling fee. The reduced amount has not been published.
    • Who files the declaration: the current order of who must lodge e-commerce declarations (IOSS holder first, then the Special Arrangements user, then the importer’s indirect representative) runs until 30 June 2028, according to the same guidance.
    • VAT: the Commission’s revised VAT e-commerce Explanatory Notes mention an extension of the Union One-Stop Shop from 1 July 2028. That concerns other supplies of goods, not IOSS itself.

    Timeline at a glance

    • May 2023: Commission proposes customs reform.
    • 11 Feb 2026: Council adopts Regulation (EU) 2026/382, ending the €150 duty exemption.
    • 1 Jul 2026: €3 per-item duty starts. PIDs can be provided voluntarily.
    • 16 Sep 2026: customs reform Regulation (EU) 2026/2108 adopted.
    • 1 Nov 2026: €2 Union handling fee. PIDs mandatory up to €150.
    • 2027: EU Customs Authority established in Lille.
    • 1 Jul 2028: Data Hub mandatory for e-commerce. €3 duty planned to end, replaced by normal rates. Extension possible.
    • 2031: Data Hub open to other businesses on a voluntary basis.
    • 1 Mar 2034: Data Hub mandatory for all traders.

    Sources

    • European Commission, EU Customs Reform: https://taxation-customs.ec.europa.eu/customs/eu-customs-reform_en
    • European Commission news, 8 June 2026: https://taxation-customs.ec.europa.eu/news/guidance-and-legal-text-temporary-flat-fee-low-value-imports-which-will-apply-until-1-july-2028-2026-06-08_en
    • 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
    • Council of the EU press release, 11 February 2026: https://www.consilium.europa.eu/en/press/press-releases/2026/02/11/council-gives-final-green-light-to-new-customs-duty-rules-for-small-parcels/
    • Council document ST 8820/26: https://data.consilium.europa.eu/doc/document/ST-8820-2026-INIT/en/pdf
    • Dutch Customs, Handling fee for e-commerce (legal references): https://www.douane.nl/en/themes/import-and-export/import/e-commerce/handling-fee-for-e-commerce/
    • European Commission, VAT e-commerce Explanatory Notes: https://vat-one-stop-shop.ec.europa.eu/document/download/774b31ca-03c6-4fb1-8209-9e447aeeb1e9_en?filename=Explanatory%20Notes_revised_1Jan2027_0.pdf
    • Revenue (Ireland), How the fee applies: https://www.revenue.ie/en/customs/individuals/union-handling-fee/how-the-fee-applies.aspx

    Last updated: 29 October 2026. This article is general information, not legal or tax advice.

  • Checklist: 10 things to update in your store before shipping to EU customers this holiday season

    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

    1. Recalculate landed cost (€3 + €2 per item).
    2. Choose duty-paid or duty-unpaid.
    3. Show final prices clearly.
    4. Settle IOSS or marketplace VAT.
    5. Verify HS codes.
    6. Add PIDs.
    7. Update carrier data feeds.
    8. Consolidate parcels and bundle carefully.
    9. Revise your returns policy.
    10. 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.

  • IOSS explained: how VAT works on EU orders under €150 and whether you should register

    Every commercial parcel shipped to an EU consumer is subject to VAT, whatever its value. For parcels up to €150, the EU offers a simplified system called the Import One-Stop Shop (IOSS). It lets you charge VAT at checkout and file one monthly return for all 27 Member States, instead of leaving VAT to be collected from your customer on delivery.

    This guide explains how IOSS works, the alternatives, and how to decide whether it is worth registering, now that the €3 duty and €2 handling fee also apply.

    The basics: VAT on imports up to €150

    According to the Commission’s Explanatory Notes on the VAT e-commerce rules, all commercial goods imported into the EU have been subject to VAT since 1 July 2021. There are three ways that VAT gets collected on consumer parcels with an intrinsic value up to €150:

    1. IOSS: you (or the marketplace) charge VAT at checkout at the rate of the customer’s country, and the parcel clears customs VAT-exempt.
    2. Special Arrangements: the carrier or postal operator collects import VAT from the customer on delivery and pays it to the authorities monthly.
    3. Standard import VAT: VAT is paid on importation through the normal customs procedure, usually charged to the customer by the carrier.

    Using IOSS is optional, according to the Commission’s VAT e-commerce guidance. Above €150, IOSS cannot be used and normal import VAT and customs rules apply.

    How IOSS works in practice

    Scope

    • Distance sales of goods sent from outside the EU to EU consumers, in consignments with an intrinsic value of €150 or less.
    • Goods subject to EU harmonised excise duties (such as alcohol and tobacco) are excluded. The Explanatory Notes say IOSS also cannot be used where low-value goods are shipped together with excise goods.
    • You cannot split one order above €150 into smaller parcels to bring it under IOSS.

    Charging VAT

    You charge the VAT rate that applies to the product in the Member State where the goods are delivered. VAT becomes chargeable when payment is accepted, meaning when you receive payment confirmation or authorisation, not when the money arrives. Rates vary by country and product, so your checkout needs a rate table for all 27 Member States.

    Filing and paying

    The Explanatory Notes say IOSS returns are monthly. Both the return and the payment are due by the end of the month following the reporting month. The return breaks sales down by destination country and by standard and reduced rates. According to the OSS portal, you must file a return for every period, even if you made no sales. You must keep records for 10 years from the end of the year of the sale.

    The IOSS number

    Your IOSS number (format IMxxxyyyyyyz) has to reach customs through your carrier’s electronic data to file directly. In practice, risk analysis at EU level means inconsistent or incorrect data (wrong HS codes, undervaluation, missing PIDs) is more likely to be spotted, wherever your parcels enter the EU.

    The EU Customs Data Hub

    The Data Hub will be a single digital interface for customs operations across the EU. Businesses will submit customs and product data once, through one platform, instead of dealing with national systems. The Commission says there are currently more than 111 separate national IT interfaces and systems.

    The Commission gives this rollout:

    • 2028: e-commerce operators gain access. The Commission says use of the Data Hub becomes mandatory for e-commerce on 1 July 2028.
    • 2031: other businesses can start using it voluntarily.
    • 2034: mandatory for all traders, from 1 March 2034.

    Under the new model, online platforms and sellers become “importers for distance sales”. The Commission says they will report sales to EU consumers through the Data Hub immediately after they happen, so customs can assess risk before the goods arrive. They will also be liable for duties and fees, and for product compliance, for example by identifying a responsible economic operator in the EU.

    When normal duty rates replace the €3

    This is the date most sellers care about. Official sources agree on the plan:

    • The Commission says the €3 applies until 1 July 2028, after which normal customs duties apply depending on the type of goods.
    • The Council of the EU says the €3 applies from 1 July 2026 to 1 July 2028, “may be extended as appropriate”, and will be replaced by normal tariffs once the Data Hub is operational, “currently expected in 2028”.
    • A Council working document says that if the Commission finds the Data Hub will not be ready by that date, it must propose extending the transitional measure.

    Bottom line: 1 July 2028 is the legal end date for the flat €3, but it depends on the Data Hub being ready. An extension is possible. We will update our Rule Change Tracker if that happens.

    When normal rates apply, low-value parcels will pay the duty for each product’s tariff code, from the first euro. Depending on the product, that could be more or less than €3 per item. The Irish Revenue uses today’s rules for parcels over €150 as an illustration: jeans at 12% and running shoes at 16.9%. For cheap single-category orders, normal rates may cost less than €3. For higher-value items in high-duty categories, they may cost more. Accurate HS classification will matter even more than it does now.

    Other dates in 2028

    • Customs warehouses for distance sales: the Commission guidance says this new type of warehouse becomes available from 1 July 2028, and goods sold from such warehouses will pay a lower handling fee. The reduced amount has not been published.
    • Who files the declaration: the current order of who must lodge e-commerce declarations (IOSS holder first, then the Special Arrangements user, then the importer’s indirect representative) runs until 30 June 2028, according to the same guidance.
    • VAT: the Commission’s revised VAT e-commerce Explanatory Notes mention an extension of the Union One-Stop Shop from 1 July 2028. That concerns other supplies of goods, not IOSS itself.

    Timeline at a glance

    • May 2023: Commission proposes customs reform.
    • 11 Feb 2026: Council adopts Regulation (EU) 2026/382, ending the €150 duty exemption.
    • 1 Jul 2026: €3 per-item duty starts. PIDs can be provided voluntarily.
    • 16 Sep 2026: customs reform Regulation (EU) 2026/2108 adopted.
    • 1 Nov 2026: €2 Union handling fee. PIDs mandatory up to €150.
    • 2027: EU Customs Authority established in Lille.
    • 1 Jul 2028: Data Hub mandatory for e-commerce. €3 duty planned to end, replaced by normal rates. Extension possible.
    • 2031: Data Hub open to other businesses on a voluntary basis.
    • 1 Mar 2034: Data Hub mandatory for all traders.

    Sources

    • European Commission, EU Customs Reform: https://taxation-customs.ec.europa.eu/customs/eu-customs-reform_en
    • European Commission news, 8 June 2026: https://taxation-customs.ec.europa.eu/news/guidance-and-legal-text-temporary-flat-fee-low-value-imports-which-will-apply-until-1-july-2028-2026-06-08_en
    • 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
    • Council of the EU press release, 11 February 2026: https://www.consilium.europa.eu/en/press/press-releases/2026/02/11/council-gives-final-green-light-to-new-customs-duty-rules-for-small-parcels/
    • Council document ST 8820/26: https://data.consilium.europa.eu/doc/document/ST-8820-2026-INIT/en/pdf
    • Dutch Customs, Handling fee for e-commerce (legal references): https://www.douane.nl/en/themes/import-and-export/import/e-commerce/handling-fee-for-e-commerce/
    • European Commission, VAT e-commerce Explanatory Notes: https://vat-one-stop-shop.ec.europa.eu/document/download/774b31ca-03c6-4fb1-8209-9e447aeeb1e9_en?filename=Explanatory%20Notes_revised_1Jan2027_0.pdf
    • Revenue (Ireland), How the fee applies: https://www.revenue.ie/en/customs/individuals/union-handling-fee/how-the-fee-applies.aspx

    Last updated: 29 October 2026. This article is general information, not legal or tax advice.

  • 1 November 2026 EU changes: handling fees and new data requirements on low-value parcels

    Two new EU requirements for e-commerce imports start on Sunday, 1 November 2026, just before Black Friday and the holiday peak. The first is a €2 Union handling fee per item. The second is mandatory product identifiers (PIDs) in customs data for low-value parcels. Both sit on top of the €3 customs duty that has applied since 1 July 2026.

    This article sets out what is confirmed by official sources, what carriers are saying, and where they differ.

    The €2 Union handling fee

    What is confirmed

    The fee amount is set by Commission Delegated Regulation (EU) 2026/2152, published in the Official Journal on 22 October 2026. The regulation on EUR-Lex fixes the Union handling fee at €2 per item, applying from 1 November 2026. The Commission’s customs reform page confirms that the EU will apply the €2 fee from that date.

    Key points from the Commission’s guidance for Member States and trade:

    • Per item, not per parcel. “Item” has the same meaning as for the €3 duty: goods sharing the same tariff classification, description and (where required) origin. Because of IT limitations, the fee is applied per declaration line, whatever the quantity on that line.
    • Any value. Unlike the €3 duty, the fee also applies to distance-sale consignments above €150.
    • Permanent. The €3 duty is temporary. The handling fee is not.
    • Non-refundable. Once the customs declaration is accepted, the fee stays due, even if goods are not released or are later returned.
    • VAT is charged on it. The fee counts as part of the VAT taxable amount. Under IOSS, if you charge it to the customer at checkout, it goes into your IOSS VAT return. Under the Special Arrangements or standard import VAT, import VAT is charged on it.
    • Declaration code. From 1 November 2026, declarants must include TARIC document code Y126 on H1, H6 and H7 declarations for distance-sale goods. That code triggers the fee.

    Who pays and what it covers

    The fee is owed by the customs declarant: the platform, seller, carrier or agent that files the declaration. Dutch Customs confirms the declarant pays €2 per declaration line for e-commerce goods delivered to EU consumers. Its example: one parcel with 2 shirts, 3 sweaters and 1 hat has 3 lines, so the fee is €6. Dutch Customs also says the fee is not part of the customs value, is non-refundable even when delivery fails or the parcel is refused, and must be covered by a guarantee.

    Ireland’s Revenue says the fee will be paid by the e-commerce seller or the delivery business, which may pass it on to consumers. It applies to goods shipped from Great Britain, and it does not apply to gifts between private individuals.

    What it costs per parcel

    For a parcel worth €150 or less, each distinct item now costs €5 before VAT: €3 duty plus €2 fee. Revenue’s example: a €10 parcel with a pen, a notebook and a key ring costs €9 in duty plus €6 in handling fees, so €15 plus VAT. Above €150, normal duty rates apply plus €2 per item.

    A note on conflicting carrier information

    Most carriers describe the fee correctly as €2 per declaration line. At least one UK parcel carrier’s public notice (Evri) describes the €3 duty as a single charge per shipment with €2 per unique item on top. That does not match the Commission guidance, which applies both the €3 and the €2 per item. If your carrier’s quote looks different, ask them to explain how they calculate it.

    Product identifiers (PIDs)

    Under the Commission guidance, PIDs are mandatory from 1 November 2026 for goods sold in distance sales with an intrinsic value up to €150. They could be provided voluntarily from 1 July 2026 without penalties. B2B flows are in principle not affected.

    Three identifiers are involved:

    • M-PID (merchant product identifier): your own code, for example your SKU. The guidance says it must be unique on each website, marketplace or platform. Required.
    • NS-PID (non-standardised manufacturer identifier): the manufacturer’s or supplier’s own code, for example a model number. Required. If none exists, the manufacturer or supplier is expected to assign one.
    • S-PID (standardised manufacturer identifier): a code based on an international standard, such as an EAN barcode or ISBN. Required if it exists. If not, the exception code Y081 is declared.

    Some details sellers often miss:

    • Use model-level identifiers. The guidance says deliberately using batch- or unit-level codes when a model-level code exists is an infringement.
    • Bundles: report the PIDs of each product in the bundle.
    • Personalised and print-on-demand goods get no special treatment. Report the PID of the underlying product, such as the blank T-shirt.
    • Simplified entries are allowed for certain handmade and artisanal goods, certain agricultural products, and antiques and collectibles, listed by tariff code in section 8.8 of the guidance.

    Is there a grace period?

    This is unclear. FedEx says the Commission has asked Member States to take a “pragmatic and collaborative approach” during a transition period currently expected to end in early 2027, and that FedEx will apply interim measures when PIDs are missing. We could not find this transition period in the Commission guidance we reviewed, which says effective enforcement starts on 1 November 2026. DHL Express mentions no grace period and warns that missing PIDs can cause delays, holds or returns to origin. Treat 1 November as a hard deadline.

    DHL’s page also describes PIDs as required “regardless of shipment value”. The Commission guidance limits the requirement to consignments up to €150. We follow the Commission.

    What to do this week

    1. Add M-PID, NS-PID and S-PID (or “no S-PID”) fields to every product you ship to the EU, and make sure your shipping software sends them to the carrier.
    2. Check your carrier’s integration. FedEx says electronic PID submission in some of its older software is planned only for March 2027, and suggests printing PIDs on commercial invoices until then.
    3. Add €2 per item to your landed-cost calculation for all EU consumer orders, including orders over €150.
    4. Update your returns terms. Neither the €2 fee nor, in most cases, the €3 duty comes back when a parcel is returned.

    For background on the €3 duty, see The EU’s €150 duty exemption is gone.

    Sources

    • EUR-Lex, Commission Delegated Regulation (EU) 2026/2152: https://eur-lex.europa.eu/eli/reg_del/2026/2152/oj/eng
    • European Commission, EU Customs Reform: https://taxation-customs.ec.europa.eu/customs/eu-customs-reform_en
    • 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
    • Dutch Customs, Handling fee for e-commerce: https://www.douane.nl/en/themes/import-and-export/import/e-commerce/handling-fee-for-e-commerce/
    • Revenue (Ireland), press release on the Union Handling Fee: https://www.revenue.ie/en/corporate/press-office/press-releases/2026/pr-092926-handling-fee.aspx
    • FedEx, EU customs changes: https://www.fedex.com/en-ca/shipping-services/international/regulatory/eu-customs-changes.html
    • Evri, EU customs update November 2026: https://www.evri.com/news/eu-customs-update-november-2026
    • 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.

  • The EU’s €150 duty exemption is gone: what the €3 per-item customs duty (from 1 July 2026) means for your shop

    For years, parcels worth €150 or less could enter the European Union without customs duty. That ended on 1 July 2026. Since then, a flat €3 customs duty applies to low-value e-commerce imports, and it is charged per item category, not per parcel. If you sell from the US, UK or Asia directly to EU consumers, this affects your margins, your checkout and how you pack orders.

    This guide explains what changed, how the €3 is calculated, who pays it and what to do about it.

    What changed on 1 July 2026

    The EU removed the customs duty exemption for low-value consignments by deleting the relevant articles of the duty relief regulation. The legal basis is Council Regulation (EU) 2026/382 of 11 February 2026. According to the European Commission’s Access2Markets service, this regulation abolished the exemption and introduced a temporary €3 duty per item that applies from 1 July 2026 to 1 July 2028.

    The Council of the EU’s February 2026 press release describes the €3 as an interim flat rate that will be replaced by normal customs tariffs once the new EU Customs Data Hub is operational, which is currently expected in 2028. VAT is a separate matter: as FedEx notes, all goods imported into the EU have been subject to VAT regardless of value since 2021, and that has not changed.

    How the €3 is calculated

    The most common misunderstanding is that the €3 is charged per parcel. It is not. It is charged per item, and “item” has a specific customs meaning.

    The Commission’s guidance for Member States and trade defines an item as one or more goods in a consignment that share the same tariff classification, description and (where required) origin. Because of current IT limitations, the guidance says the duty is applied automatically per declaration line, whatever the quantity on that line. Goods with different tariff subheadings may not be grouped on one line.

    In practice:

    • One parcel with three identical T-shirts = one item = €3.
    • The Council’s own example: a parcel with two toys, one wool coat and three bottles of shampoo contains three categories of goods, so the duty is €9.
    • Ireland’s tax authority gives a similar example: a €10 parcel with a pen, a notebook and a key ring attracts €9 in duty, while two identical pens count as one item (Revenue).

    The €150 limit refers to the intrinsic value of the whole consignment, meaning the price of the goods themselves, generally excluding separately stated transport and insurance. Above €150, normal duty rates apply by product, as before.

    Splitting orders does not help

    The Commission guidance says goods in one order that are dispatched separately are separate consignments, and DHL points out that the same product shipped in two parcels is charged in each parcel (DHL Express guide). The guidance also describes anti-abuse checks for shipments that look like bundled individual consumer orders. Splitting an order usually means paying the €3 more than once.

    Which shipments are covered

    The €3 applies to goods sold in distance sales (business-to-consumer sales where the seller arranges delivery, directly or indirectly) in consignments up to €150. According to the Commission guidance, it applies:

    • to all goods where VAT is collected through the Import One-Stop Shop (IOSS);
    • to “postal consignments” as newly defined, which covers other distance sales up to €150 using the Special Arrangements or standard import VAT;
    • regardless of the declaration type used (H1, H6 or H7);
    • also to alcohol, perfumes and tobacco, which were previously excluded from the old exemption.

    Main exception: goods with preferential origin under an EU free trade agreement or customs union agreement can claim the preference only if they are declared on a full H1 declaration and IOSS was not used. All IOSS imports pay the €3, even if the goods would qualify for preferential origin. FedEx’s guidance says the same. B2B shipments to VAT-registered businesses fall outside the distance-sale scope.

    Note: the Council’s December 2025 announcement said the duty would apply to IOSS-registered sellers. The final February 2026 text and Commission guidance are broader and cover non-IOSS distance sales too. Rely on the later documents.

    Who pays

    The EU frames the duty as a charge on business, not on consumers. The Commission guidance says responsibility lies “first and foremost” with the declarant: the IOSS holder, the Special Arrangements user, or their indirect representative (often your carrier or customs agent). In commercial terms, though, someone has to absorb it:

    • You collect it at checkout and ship on duty-paid terms, so the customer pays nothing on delivery.
    • The carrier collects it from the customer before delivery, usually with a clearance fee on top.

    Ireland’s Revenue describes both models from the consumer side. The second one tends to cause refused deliveries and returns.

    Returns and refunds

    The Commission guidance says that for low-value distance-sale goods, operators can no longer use the facilitation that let them invalidate a declaration after goods were returned, so the €3 cannot be reimbursed that way. General refund rules still apply. Revenue tells Irish consumers the €3 is non-refundable unless the goods are faulty. Plan your returns policy assuming the duty is usually lost.

    What to do now

    1. Recalculate margins on your typical EU basket. Count distinct product types per parcel, not units.
    2. Get HS codes right for every SKU. The number of tariff lines drives the cost.
    3. Decide on duty-paid delivery. If you use IOSS, collecting the €3 at checkout is usually the cleanest option.
    4. Think about bundles. Multi-category bundles cost more in duty than single-category ones.
    5. Budget for the next fee. From 1 November 2026, a separate €2 Union handling fee applies per item on top of the €3. See our guide to the 1 November changes.

    How long will the €3 last?

    The Commission says the flat €3 applies until 1 July 2028, after which normal duty rates by product will apply. A Council working document notes that if the Data Hub is not ready by then, the Commission is to propose an extension (Council document ST 8820/26). The 2028 date is therefore planned, not guaranteed.

    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 news, 8 June 2026: https://taxation-customs.ec.europa.eu/news/guidance-and-legal-text-temporary-flat-fee-low-value-imports-which-will-apply-until-1-july-2028-2026-06-08_en
    • Access2Markets (European Commission): https://trade.ec.europa.eu/access-to-markets/en/news/eu-applies-eu3-customs-duty-item-low-value-e-commerce-consignments
    • Council of the EU press release, 11 February 2026: https://www.consilium.europa.eu/en/press/press-releases/2026/02/11/council-gives-final-green-light-to-new-customs-duty-rules-for-small-parcels/
    • Council of the EU, EU action on the influx of small parcels: https://www.consilium.europa.eu/en/policies/eu-action-influx-of-small-parcels/
    • Council document ST 8820/26: https://data.consilium.europa.eu/doc/document/ST-8820-2026-INIT/en/pdf
    • Revenue (Ireland), How the fee applies: https://www.revenue.ie/en/customs/individuals/union-handling-fee/how-the-fee-applies.aspx
    • FedEx, EU customs changes: https://www.fedex.com/en-ca/shipping-services/international/regulatory/eu-customs-changes.html
    • DHL Express, EU customs duty guide: https://www.dhl.com/discover/en-nz/logistics-advice/essential-guides/eu-customs-duty-malaysia-ecommerce

    Last updated: 29 October 2026. This article is general information, not legal or tax advice.