The European Union will fundamentally change the way low-value e-commerce imports are treated from 1 July 2026 by introducing a temporary €3 customs duty on imported goods valued at up to €150.
The measure abolishes the long-standing customs duty exemption for low-value consignments and forms part of the EU Customs Reform package aimed at modernising customs procedures, strengthening consumer protection, and ensuring fair competition within the Single Market.
The temporary flat-rate customs duty will remain in force until 1 July 2028, when the EU Customs Data Hub is expected to become operational and normal customs tariffs will once again apply based on the nature of the goods imported.
Why Is the EU Introducing the €3 Customs Duty?
The duty-free threshold, commonly referred to as the “de minimis” exemption, was originally designed to avoid disproportionate administrative burdens associated with processing low-value imports.
However, the rapid growth of cross-border e-commerce has dramatically changed the landscape.
In 2025 alone, almost 5.9 billion low-value items entered the EU directly from third countries without customs duties being collected.
According to the European Commission, this situation has resulted in:
• Unfair competitive advantages for certain e-commerce business models;
• Increased pressure on customs authorities;
• A surge in unsafe and non-compliant products entering the EU market;
• Distortions affecting traditional retailers that comply with EU standards and customs obligations.
The Commission argues that modern customs systems now rely on electronic declarations and digital data, eliminating the administrative justification for maintaining the exemption.
What Is Changing from 1 July 2026?
From 1 July 2026:
• A temporary €3 customs duty will apply to eligible low-value imported goods.
• The existing customs duty exemption for consignments valued at up to €150 will be abolished.
• Product Identifiers (PIDs) may be declared voluntarily.
The temporary measure will remain effective until 1 July 2028.
Thereafter, imported goods will become subject to standard customs duties determined by tariff classification under the EU Customs framework.
Which Goods Are Affected?
The new rules apply to:
• Goods imported through distance sales arrangements;
• Online purchases from non-EU sellers;
• Consignments valued at up to €150;
• Imports irrespective of the VAT mechanism used, including:
- Import One-Stop Shop (IOSS);
- Special Arrangements;
- Standard VAT procedures.
Certain exceptions remain available.
The temporary duty does not apply to goods benefiting from preferential trade agreements or Customs Union measures, provided that VAT has not been collected through IOSS and the goods are declared using an H1 customs declaration.
How Is the €3 Customs Duty Calculated?
The temporary customs duty applies per item based on tariff classification rather than physical quantity.
This means that multiple identical goods classified as a single tariff item may attract only one €3 charge, while different categories of products within the same parcel may each trigger the duty.
Who Must Pay the Duty?
The duty is generally payable by the declarant.
Depending on the business model, this may include:
• IOSS holders;
• Importers;
• Businesses using Special Arrangements;
• Indirect customs representatives acting on behalf of importers.
Consumers are expected to bear responsibility only in limited circumstances, such as where Member States provide free web-based declaration systems for private individuals.
Importantly, the European Commission emphasises that this is not a tax imposed directly on consumers.
Addressing Product Safety and Fair Competition
The reform also responds to concerns regarding unsafe imported products.
Targeted inspections conducted throughout the EU during 2025 uncovered alarming levels of non-compliance across several sectors, including:
• Cosmetics;
• Personal Protective Equipment (PPE);
• Food supplements;
• Toys;
• Electronics.
More than 60% of inspected products failed to meet EU requirements because of issues such as:
• Missing labels;
• Prohibited ingredients;
• Absent safety documentation.
By ensuring all operators importing goods into the EU face similar customs obligations, the Commission aims to reinforce consumer protection while supporting compliant businesses.
Product Identifiers Become Mandatory
To improve traceability, Product Identifiers (PIDs) will play an increasingly important role.
Key implementation dates include:
1 July 2026
PIDs may be declared voluntarily.
1 November 2026
PIDs become mandatory for eligible imports.
The identifiers will enable customs authorities to better identify, track and intercept unsafe or non-compliant products entering the EU market.
Is This Protectionism?
The European Commission rejects suggestions that the reform is designed to shield EU retailers from international competition.
According to the Commission, the objective is to restore neutrality and fairness within the Single Market.
The original de minimis threshold was intended to simplify customs administration rather than provide an economic advantage to specific business models.
Given the exponential growth of low-value imports, the Commission argues that the exemption no longer reflects market realities.
Furthermore, the measure applies equally regardless of:
• Country of origin;
• Logistics provider;
• Business model employed.
The rules are therefore designed as a non-discriminatory customs measure applicable to all operators.
Key Dates Businesses Should Know
1 July 2026
• Temporary €3 customs duty enters into force.
• Voluntary PID declarations begin.
1 November 2026
• Product Identifiers become mandatory.
1 July 2028
• EU Customs Data Hub is scheduled to become operational.
• Standard customs tariffs replace the temporary flat-rate duty.
What Businesses Should Do Now
E-commerce platforms, online marketplaces, customs intermediaries and importers should review their customs and compliance processes ahead of implementation.
Businesses should consider:
• Updating customs declaration procedures;
• Reviewing tariff classifications;
• Assessing IOSS and VAT arrangements;
• Preparing systems to capture Product Identifiers;
• Communicating potential cost impacts across supply chains.
Early preparation will help minimise disruptions and ensure compliance as the EU moves towards a more digital and risk-based customs framework.
Looking Ahead
The introduction of the temporary €3 customs duty marks one of the most significant changes to EU e-commerce imports in recent years.
By eliminating the de minimis exemption, strengthening traceability requirements and preparing for the future EU Customs Data Hub, the European Union is seeking to create a customs environment that is more transparent, efficient and equitable.
Businesses engaged in cross-border trade should closely monitor further guidance and ensure readiness ahead of the upcoming implementation deadlines.