The European Union has changed the customs treatment of low-value goods purchased from suppliers outside the EU. From 1 July 2026, qualifying e-commerce consignments valued at no more than €150 are subject to a temporary €3 customs duty.
The measure ends the previous customs-duty exemption for low-value imports and forms part of a wider reform of the EU Customs Union. It affects online sellers, marketplaces, importers, customs representatives and fulfillment businesses involved in delivering goods from non-EU countries to EU consumers.
Although the amount may appear small, the duty can have a meaningful effect on businesses selling inexpensive or low-margin products. It can influence pricing, checkout disclosures, fulfilment arrangements, product data, customs declarations and customer returns.
Businesses should understand how the duty is calculated, who is responsible for paying it and how it interacts with VAT and the Import One-Stop Shop.
What changed on 1 July 2026?
Until 30 June 2026, goods in consignments valued at no more than €150 could generally enter the EU without customs duty, although import VAT and other requirements could still apply.
From 1 July 2026, the EU replaced that exemption with a temporary €3 customs duty. The measure applies to qualifying distance sales of goods imported from outside the EU in consignments with a value of up to €150.
The temporary duty is expected to remain in place until 1 July 2028. After that date, imported goods will move to the applicable normal customs tariff, depending on their classification.
Businesses can review the implementation details through the European Commission’s guidance on the €3 customs duty.
The measure is not limited to goods originating in a particular country. It applies on a non-discriminatory basis to relevant low-value distance sales from outside the EU.
Why “€3 per item” does not mean €3 per physical product
The phrase “€3 per item” can easily be misunderstood. For this duty, an item is determined by tariff classification within the consignment rather than simply by counting every physical product in the package.
For example:
- A package containing five identical T-shirts classified under the same tariff category would generally attract one €3 charge.
- A package containing one T-shirt and one watch would generally attract two €3 charges, producing a total customs duty of €6.
The distinction is important for businesses selling product bundles or orders containing several types of goods. A parcel with multiple units of one product may receive different treatment from a parcel containing several products under different tariff classifications.
Businesses should therefore avoid calculating exposure by multiplying €3 by the number of physical units sold. The product classification of the items within each consignment must be considered.
Which goods and transactions are affected?
The temporary duty generally applies to goods:
- Sold through distance sales, including online sales to consumers
- Imported from outside the European Union
- Shipped in consignments with a value of no more than €150
- Declared through IOSS, Special Arrangements or the standard VAT procedure
The duty can apply regardless of the VAT collection scheme used. Registration under the Import One-Stop Shop does not, by itself, exempt a consignment from the €3 customs duty.
Certain goods benefiting from preferential trade arrangements or Customs Union measures may be excluded where the relevant conditions are satisfied. The available treatment can depend on origin evidence, the customs declaration used and whether VAT was collected through IOSS.
Businesses relying on preferential origin should ensure that the required evidence is available and that their customs procedure supports the claimed treatment. A supplier’s location does not necessarily establish the legal origin of the goods.
Who is responsible for paying the duty?
The customs duty is generally the responsibility of the declarant. Depending on the sales and import structure, this may be:
- The seller or importer
- An IOSS holder
- A business using Special Arrangements
- An indirect customs representative
- The indirect representative of the importer
Only in limited cases may an individual consumer become responsible, such as where a Member State provides a free web-based declaration system for citizens.
The European Commission describes the measure as an obligation imposed on businesses rather than a consumer tax. However, businesses may still decide commercially whether to absorb the cost or reflect it in their product prices or delivery charges.
The legal responsibility and the commercial burden are therefore separate questions. A seller may be responsible for payment but choose to recover the cost through pricing. Alternatively, it may absorb the duty to preserve a particular customer proposition.
Terms of sale, marketplace agreements and arrangements with customs representatives should clearly identify who acts as importer or declarant and who bears the resulting cost.
How the duty interacts with VAT and IOSS
Customs duty and import VAT are separate obligations. The €3 charge does not replace VAT, and using IOSS does not remove the customs-duty requirement.
IOSS allows eligible sellers and marketplaces to collect VAT at the point of sale on imported consignments valued at no more than €150. This can give consumers greater price certainty and simplify the payment of import VAT.
From 1 July 2026, a consignment processed through IOSS can still attract the €3 customs duty. Businesses must therefore account for both obligations in their pricing, checkout and customs processes.
Finance teams should reconcile:
- VAT collected from customers
- Customs duty paid on imported consignments
- Amounts charged by marketplaces or logistics providers
- Customs representative fees
- Refunds associated with cancelled or returned orders
- Accounting entries recorded for import costs
Corpera’s accounting services can support businesses in recording and reconciling customs, VAT and transaction costs accurately.
Product classification is now even more important
Temporary duty is worked out using tariff classification, so getting the commodity codes right is crucial. The catch is that the descriptions you see on a website often don’t give customs enough detail.
Labels like “fashion accessory,” “electronic item,” or “home product” sound fine for shopping, but they’re far too broad when it comes to deciding the correct tariff category.
Businesses should maintain reliable information about:
- Product composition
- Intended use
- Technical characteristics
- Commodity code
- Country of origin
- Customs value
- Supplier
- Supporting classification evidence
Product data should be reviewed when materials, design, components or suppliers change. A code that was correct for an earlier version of a product may not remain accurate after a modification.
Incorrect classification can produce the wrong duty calculation, customs delays, penalties or inconsistent treatment across different import routes.
Where classification is uncertain, businesses should obtain specialist customs advice rather than relying on a code suggested informally by a supplier or fulfilment partner.
Product identifiers become mandatory in November 2026
The customs changes extend beyond the €3 duty. Product identifiers can be declared voluntarily from 1 July 2026 and become mandatory from 1 November 2026.
Product identifiers are intended to improve traceability and help customs authorities detect unsafe or non-compliant goods. They allow authorities to connect the customs declaration more effectively with the specific product entering the EU market.
E-commerce businesses should confirm that product identifiers are held consistently across their:
- Online catalogue
- Order-management system
- Warehouse records
- Shipping documentation
- Customs declarations
- Marketplace listings
A missing or inconsistent product identifier may interrupt the customs process or make it more difficult to demonstrate that the imported product meets EU requirements.
Businesses should use the period before mandatory implementation to test whether identifiers pass correctly from their commercial systems to carriers and customs representatives.
Pricing and margin implications for online sellers
The commercial impact of the duty depends heavily on product value and order composition.
A €3 duty may be relatively minor for a product selling at €100. It can be significant for an item selling at €5 or €10, particularly after VAT, marketplace commission, fulfilment costs, payment fees and returns are considered.
Businesses should model the duty at product and order level rather than relying only on an average across all sales. Analysis should consider:
- Selling price
- Gross margin
- Number of tariff categories per consignment
- Average order size
- Shipping and fulfilment costs
- Marketplace fees
- Expected return rate
- Customer acquisition costs
- Whether the duty is absorbed or passed on
Bundles deserve particular attention. Combining products from different tariff categories in one consignment can result in more than one €3 charge.
Corpera’s business advisory services can help management evaluate the financial and operational implications of different pricing and fulfillment strategies.
Checkout disclosures and customer experience
Unexpected import costs can lead to abandoned purchases, refused deliveries, complaints and chargebacks.
Businesses should ensure that their checkout information accurately reflects who will pay customs duty and whether the displayed price includes import-related charges.
Where the seller or marketplace collects all costs at checkout, the customer should not be asked to pay the same duty again when the parcel arrives. Contracts with carriers and customs representatives should support the promised customer experience.
Customer-service teams should understand the difference between:
- The €3 customs duty
- Import VAT
- Customs brokerage charges
- Delivery fees
- The proposed EU handling fee
Clear internal guidance will help staff respond accurately when customers question an additional charge or a delayed parcel.
The €3 duty is different from the proposed handling fee
The temporary customs duty should not be confused with the proposed Union handling fee.
The €3 measure is a customs duty that took effect on 1 July 2026. It replaces the previous low-value customs-duty exemption.
The proposed handling fee is a separate charge intended to contribute to the cost of processing e-commerce imports. Its amount and application timetable were still to be determined when the Commission issued its July 2026 guidance.
Businesses should avoid referring to every customs-related cost as the “€3 fee.” Using the correct terminology is important for accounting, customer communication and contractual responsibility.
Returns, replacements and cancelled orders
Returns can make the accounting and customs process more complicated.
A business should determine what happens when:
- A customer refuses delivery
- Goods are returned to a non-EU warehouse
- A refund is issued after import
- A replacement product is sent
- A parcel is lost and re-shipped
- An order is cancelled after customs processing begins
The commercial refund given to a customer does not necessarily reverse the customs entry automatically. Businesses should coordinate with their carrier or customs representative to understand whether duty can be recovered and what evidence is required.
Returns data should be reconciled with sales, VAT, customs records and inventory movements. Frequent discrepancies may indicate that fulfilment and finance systems are not sharing information correctly.
The wider EU Customs Reform
The temporary duty is part of a broader effort to modernise the EU Customs Union.
Under the wider EU Customs Reform, the EU plans to introduce a Customs Data Hub that will provide a single environment for customs information and allow data to be reused across consignments.
The Data Hub is expected to open for e-commerce consignments in 2028. The reform also gives online platforms a greater role in ensuring that customs duties and VAT are paid and that imported products comply with EU safety and environmental requirements.
Businesses should view the €3 duty as an immediate change within a longer transition toward more centralised, digital and data-driven customs administration.
An action plan for e-commerce businesses
Businesses importing low-value goods into the EU should:
- Identify products shipped from outside the EU in consignments up to €150.
- Confirm who acts as the importer and customs declarant.
- Review commodity codes and supporting classification information.
- Calculate exposure by tariff category rather than physical unit.
- Determine whether the duty will be absorbed or reflected in pricing.
- Review checkout wording and customer terms.
- Confirm how IOSS, import VAT and customs duty are processed.
- Test product identifiers before they become mandatory.
- Review contracts with marketplaces, carriers and customs representatives.
- Establish procedures for returns, replacements and cancelled orders.
- Reconcile customs costs with sales, VAT and accounting records.
- Monitor implementation guidance and the transition to the Customs Data Hub.
Corpera’s Tax and VAT services can help businesses assess the tax and accounting consequences of cross-border sales and build reliable compliance processes.
Companies requiring support with their import structure, transaction records or financial planning can contact Corpera to discuss their circumstances.
This article is provided for general information and does not constitute personalised customs, tax, VAT or legal advice. Customs treatment may depend on product classification, origin, value, contractual arrangements and the declaration procedure used.
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