EU €150 customs duty exemption abolished: E-commerce rules in 2026

A low-cost T-shirt, a charging cable, a small spare part: For millions of online orders, the €150 customs duty exemption was an important part of the pricing calculation. That exemption based on value ended on 1 July 2026. Covered low-value e-commerce consignments are now subject to a temporary €3 customs duty per goods item under Council Regulation (EU) 2026/382.

For merchants, platforms and logistics providers, this changes more than the cost of an individual order. Product descriptions, commodity codes and the link between orders and consignments directly affect the duty calculation. Collecting these data only when goods are dispatched moves avoidable errors to the customs border.

As of 8 October 2026. This article distinguishes rules already in force from the next implementation stages of the EU customs reform.

What has changed since 2021?

On 1 July 2021, the import VAT exemption for commercial low-value consignments up to €22 ended. These online purchases have generally been subject to VAT regardless of their value since then. That change concerned VAT; the customs duty exemption for consignments up to and including €150 initially remained in place. European Commission: VAT rules for low-value consignments.

This distinction matters: VAT and customs duty are separate charges. Since 2021, a parcel could be subject to VAT while still qualifying for customs duty relief because of its low value.

Parcel volumes continued to grow. The Commission reports almost 5.9 billion imported low-value e-commerce items in 2025. The reform addresses issues including competitive distortions, undervaluation and breaches of product standards. The former threshold was a legitimate relief; false value declarations were a separate issue. European Commission: Background to the new rules.

Which consignments are covered by the €3 duty?

The temporary duty concerns distance sales of imported goods in consignments with an intrinsic value not exceeding €150 – typically online orders shipped from a third country to EU consumers. The updated rules cover these distance sales outside IOSS as well. The legal definition of “goods in postal consignments” is broader than a parcel delivered by a traditional postal operator. Preferential goods outside IOSS may receive different treatment through an H1 declaration. Commission Delegated Regulation (EU) 2026/1022.

In practice, a low invoice amount does not determine the procedure by itself. The sales model, goods status, VAT scheme and any conditions for preferential treatment also matter. The €3 duty should therefore not be applied indiscriminately to every B2B import or private gift consignment.

€150 remains a relevant procedural threshold. What has ended is automatic customs duty relief based on low value. Consignments above €150 fall outside this temporary duty and are governed by the normal customs rules. A customs declaration does not necessarily result in a positive duty amount: The applicable tariff or a valid preference can still produce a zero rate.

€3 per unit, parcel or goods item?

The short answer is: per goods item in the customs declaration, rather than automatically per physical unit or parcel. Several matching products can constitute one item. They must share the same tariff classification, description and, where required in the dataset, origin. Definition of an item in Commission Delegated Regulation (EU) 2026/1022.

A simplified example for a covered consignment up to €150:

The Commission explains the calculation using examples of this kind. These amounts cover customs duty only, excluding VAT and other fees.

The shop category “clothing” is not sufficient for reliable grouping. Material, characteristics or origin can require separate items. Equally, splitting identical goods into unnecessary declaration lines can increase the charges. The data model should distinguish between a shop SKU, a physical unit and a goods item for customs purposes.

IOSS remains: Handle VAT and customs duty separately

The Import One Stop Shop (IOSS) is a VAT scheme for certain distance sales of imported goods up to €150. The seller or platform collects VAT at the time of sale and remits it through IOSS. When the scheme is applied correctly, the subsequent import is exempt from import VAT so that the same supply is not taxed again. European Commission: One Stop Shop.

For commercial supplies, sellers can therefore collect VAT at checkout. Without IOSS, VAT is generally handled at importation. The chosen procedure should be reflected consistently from the sale through to the customs declaration.

IOSS does not handle the new customs duty. Customs declarations and duty payments remain a separate process. VAT treatment of a duty amount passed on to the customer also depends on the arrangements. The Commission's additional VAT guidance addresses this distinction.

Pricing calculations should keep the goods price, delivery, customs duty, VAT and service provider fees separately traceable. This supports checkout pricing, accounting and the resolution of later queries.

From November: Product identifiers and a separate handling fee

From 1 November 2026, Product Identifiers (PIDs) become mandatory for the affected distance sales of low-value imported goods. They identify the specific product in addition to its commodity code. Commission: Introduction of product identifiers.

A separate Union handling fee is also being introduced. The Commission update published on 7 October provides for €2 per goods item from 1 November 2026. Its guidance dated 5 October states that the delegated act is still under scrutiny and describes the start date as expected. The fee is also intended to cover qualifying distance sales above €150. Current Commission guidance, sections 2.2 and 3.2.

This fee needs to be considered in addition to customs duty. A parcel carrier's charge for its own clearance service is another separate cost. Businesses should account for new fees explicitly in their pricing and billing logic.

What changes with the EU Customs Data Hub?

The reform gradually introduces a shared EU customs data platform. The EU Customs Data Hub will bring together goods movement data and provide authorities with a common basis for risk assessment. Platforms and sellers take on more responsibility for customs formalities and product compliance under the new model. Council of the EU: New customs model and responsibilities.

The main implementation stages are:

The Commission's reform overview describes this phased rollout. National systems such as ATLAS will be replaced gradually. Businesses still need functioning existing declaration processes until their respective transition.

The €3 duty is initially limited to the period ending on 1 July 2028. An extension may be proposed if the central IT infrastructure is not ready in time. Normal customs duties are intended to apply afterwards. This does not establish a general promise that simplified tariff categories will replace every product-specific classification. Council Regulation (EU) 2026/382, Articles 2 and 3.

What does “Trust & Check” mean for businesses?

The reform also creates a status for particularly transparent and reliable operators: Trust & Check. Businesses meeting the criteria and providing comprehensive supply chain visibility can obtain simplifications. Under certain conditions, release without active customs intervention is envisaged. This is a qualified status with requirements for the operator, rather than automatic clearance for every digitally submitted dataset. Council of the EU: Simplifications for reliable traders.

For IT planning, good data and documented controls are as important as interfaces. An automated workflow needs clear ownership of incorrect values, uncertain classifications and missing evidence.

What merchants and logistics providers should prepare now

Practical preparation starts in the shop, ERP, warehouse and dispatch process. Six steps help establish a reliable workflow:

1. Complete product master data: Maintain clear descriptions, material, intended use, commodity codes and relevant origin details. Link product identifiers to the correct product.
2. Connect orders and consignments: Keep the link between goods, sales and declarations traceable, including split deliveries, consolidations and multiple parcels.
3. Build goods items correctly: Group identical products only where the customs characteristics match. Do not declare different goods under one broad shop category.
4. Clarify charges and responsibilities: Establish who collects VAT, lodges customs declarations, pays charges and handles queries. Include the agreed Incoterms® in this workflow.
5. Automate data handover and responses: Run validations before dispatch wherever possible. Return rejections, status changes and missing information to the responsible team.
6. Check exceptions too: Include free extras, preferences and returns in realistic test consignments. The basics of customs valuation help with value questions.

The goal is a process where common cases require little manual work and unusual cases reach a reviewer in time. An interface cannot identify an incorrect description if the necessary product characteristics are missing.

E-commerce customs clearance built on reliable data

Declarium supports an initial workflow through Excel/CSV uploads and AI extraction from invoices and delivery documents. For recurring volumes, the customer system can send data from ERP, WMS, TMS, shop or fulfilment systems to the Declarium REST API. The customer's team or integration partner implements the connection on their side.

This brings product, value, consignment and document data into a shared customs workflow and makes responses easier to track. That data foundation supports current procedures and preparation for future changes. The technical transition to the Data Hub will be a separate step following the relevant implementation requirements.

The end of the €150 exemption makes data quality a direct cost factor in e-commerce. Businesses that connect goods items, charges and responsibilities early can manage growing volumes with greater control. Learn more about getting started on our digital customs clearance page.

Sources

• Council Regulation (EU) 2026/382: Removal of value-based duty relief and temporary duty
• Commission Delegated Regulation (EU) 2026/1022: Definitions, declarations and product data
• European Commission: Guidance on the €3 duty and Union handling fee, 5 October 2026
• European Commission: EU customs reform and implementation timeline
• European Commission: IOSS and VAT guidance on the €3 customs duty
• Council of the EU: Approval of the reform on 3 September 2026