EU Ends €150 Import Exemption, Adds New €3 Duty in 2026

The EU ends its €150 import exemption for customs duty on July 1, 2026, a major regulatory change for global e-commerce. This long-standing de minimis threshold is being replaced with a temporary flat-rate customs duty of €3 per item for consignments valued at €150 or less. The reform, confirmed in Council Regulation (EU) 2026/382, requires retailers to collect this duty alongside existing VAT (Avalara confirmed).

This new regulation applies to every consignment with an intrinsic value of €150 or less (the price of the goods alone). According to official guidance, the €3 duty is a transitional measure effective until July 1, 2028, after which standard customs duties based on product HS codes will return (EU Taxation and Customs).

What Changes on July 1, 2026?

Beginning July 1, 2026, the EU's €150 duty-free import threshold is eliminated. It will be replaced by a temporary €3 customs duty for each item in a shipment valued at €150 or less. This fee is charged alongside standard VAT and will apply until July 1, 2028.

• €150 De Minimis Exemption Ends: The customs duty waiver for low-value imports is officially removed.
• New €3 Flat Duty: A transitional €3 duty is levied per individual item, based on its tariff heading. This is charged per item, not per parcel.
• VAT Obligations Unchanged: VAT is still required on all imports, continuing the policy established with the 2021 removal of the €22 VAT waiver.
• Transitional Period: The €3 flat fee is temporary and will expire on July 1, 2028, reverting to standard HS-based customs duties.

Impact on E-Commerce and Landed Costs

Landed costs will increase due to the new €3 duty, disproportionately affecting impulse buys and single-item orders. For consumers, cross-border purchases may become more complex due to the additional duty requirements. The change may incentivize consolidation of shipments as retailers seek to optimize costs.

Products Most Exposed to Cost Increases
* Fashion accessories and costume jewellery
* Small electronics and cables
* Cosmetics and samples
* Craft supplies
* Low-cost replacement parts

Strategic Responses for Cross-Border Retailers

To minimize friction, retailers are adopting Delivered Duty Paid (DDP) models. This involves collecting VAT and the €3 duty at checkout to eliminate surprise fees for customers. IOSS (Import One-Stop Shop) registration remains important for VAT handling, though it does not cover the new customs duty.

A more structural solution is shifting to localized inventory. This "bulk-to-local" model involves shipping consolidated freight to EU hubs in countries like Poland or Germany. This strategy replaces thousands of individual customs events with a single bulk import, with duty paid on wholesale value rather than the recurring €3 per-item fee.

Other tactics focus on order optimization. Retailers are auditing SKUs to consolidate products under fewer tariff headings, as each unique HS code incurs a separate €3 charge. Promoting multi-unit value packs also helps dilute the duty's impact across a higher average order value (AOV).

Compliance Timeline and Key Actions

Based on industry best practices, brands should prioritize the following actions:

Action	Timeline	Rationale
IOSS Registration & Verification	Immediate	Non-IOSS shipments will face significant delays and complexity. Verify carrier IOSS transmission capability.
Landed Cost Simulation	Completed by July 2026	Run dry-run tests on core SKUs to calculate full landed costs under the new rules.
Pricing & Checkout Strategy	Completed by July 2026	Update checkout logic for DDP and decide whether to absorb, pass through, or split the €3 duty per SKU.
Inventory & Bundling Review	Completed by July 1, 2026	Consolidate HS codes, create product bundles, and pre-position inventory in EU warehouses before the new €3 customs duty on low-value imports and removal of the €150 duty-free threshold begin.