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The EU ended the 150 euro customs exemption: what non-EU sellers pay now
By Karim El Achaq, founder of EUReady · Last updated: 6 July 2026
- Since 1 July 2026, the 150 euro customs duty exemption (de minimis) is abolished for parcels entering the EU.
- An interim flat duty of 3 euros per item applies to consignments worth 150 euros or less. It is charged per tariff line (product type), not once per parcel.
- VAT does not change: IOSS still works exactly as before for consignments up to 150 euros.
- A separate 2 euro per parcel handling fee is NOT law yet: it is still being negotiated, with a decision expected around November 2026.
- The interim duty runs until the permanent customs regime arrives on 1 July 2028.
What changed on 1 July 2026?
The EU abolished the de minimis rule that let parcels worth 150 euros or less enter the EU free of customs duty. Since 1 July 2026, every commercial consignment owes duty, and low-value parcels pay an interim flat rate of 3 euros per item. The change was agreed by the Council in December 2025 as part of the wider EU customs reform.
The old rule was the backbone of low-value cross-border e-commerce: roughly 4.6 billion sub-150-euro parcels entered the EU in 2024, and the EU concluded that the exemption gave non-EU sellers an unfair edge over European retailers and made fraud (undervaluation, split shipments) too easy. If you run a US, UK, Canadian or Australian store shipping direct to EU consumers, this affects every order you send.
How does the 3 euro per item duty work?
For consignments with an intrinsic value of 150 euros or less, a flat customs duty of 3 euros applies per item type in the parcel (per tariff line), not once per parcel. A parcel containing two candles and one t-shirt covers two tariff lines, so it owes 6 euros of duty, on top of VAT as before.
| Example parcel (under 150 euros) | Tariff lines | Interim duty owed |
|---|---|---|
| 3 identical scented candles | 1 | 3 euros |
| 2 candles + 1 t-shirt | 2 | 6 euros |
| 1 necklace + 1 pair of earrings + 1 ring (same tariff heading) | 1 | 3 euros |
| Order above 150 euros | n/a | Normal duty rates by product category, as always |
Orders above 150 euros are not covered by the flat rate: they keep paying the normal duty rates that always applied to them. The flat 3 euro rate is a transitional simplification until the permanent system starts on 1 July 2028.
Does IOSS still exist?
Yes. The Import One-Stop Shop is unchanged and still handles VAT on consignments up to 150 euros. The new 3 euro charge is customs duty, which is separate from VAT. In practice the duty is collected by whoever lodges the customs declaration, usually your carrier, which may add its own brokerage fee on top.
That means a seller using IOSS today should keep using it. What changes is the landed cost of your orders: price calculations, checkout duty settings and customer communication need to reflect the new duty so buyers are not surprised by carrier collection fees at the door.
What about the 2 euro handling fee you may have read about?
Not adopted yet. A separate EU-wide handling fee of around 2 euros per parcel is still under negotiation between the Council and the European Parliament, with a decision expected around November 2026. Some member states already charge national handling fees, but the EU-wide fee is a proposal, not law. We update this page when that changes (see the change log below).
What comes next: the 2028 permanent regime
In March 2026 the Council and Parliament reached provisional agreement on the full Union Customs Code reform. From 1 July 2028, the interim flat duty is replaced by a permanent regime, a new EU Customs Authority is created, and a Customs Data Hub opens for e-commerce consignments. The biggest structural change: platforms and distance sellers become the deemed importer, legally responsible for customs formalities, duties and VAT on consignments they sell into the EU.
What should a non-EU Shopify seller do now?
- Recalculate landed costs for your EU orders: product price + shipping + VAT + 3 euros per tariff line + any carrier brokerage fee.
- Decide who pays the duty: collect duties and import taxes at checkout (DDP) so customers see one final price, or ship DAP and warn customers clearly that the carrier will collect charges.
- Keep (or get) IOSS for VAT: it still prevents the worst customer experience on VAT collection.
- Update your shipping and FAQ pages: one honest paragraph about duties prevents chargebacks and angry reviews.
- Watch November 2026 for the handling fee decision, and 1 July 2028 for the deemed importer switch.
Customs is only one of the layers that changed for non-EU sellers recently: product pages also need GPSR information since December 2024, and packaging EPR tightens on 12 August 2026. Our complete 2026 EU compliance checklist walks all the layers in order.
Change log
- 5 July 2026: page published. The 3 euro interim duty is live since 1 July 2026. The 2 euro handling fee is still in negotiation (decision expected around November 2026).
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Frequently asked questions
Is the 3 euro duty charged per parcel or per item?
Per tariff line within the consignment, not per parcel. A parcel containing two different product types owes 3 euros twice. Identical items under the same tariff heading count as one line.
Do I still need IOSS after 1 July 2026?
Yes. IOSS is unchanged and still handles VAT on consignments up to 150 euros. The new 3 euro charge is customs duty, collected separately from VAT, usually by your carrier.
Does this apply to UK sellers shipping to the EU?
Yes. The UK is a non-EU country, so parcels from Great Britain to EU consumers owe the interim duty like parcels from the US or anywhere else. Northern Ireland follows EU rules under the Windsor Framework.
Are orders above 150 euros hit by the new duty?
No. Orders above 150 euros keep paying the normal customs duty rates that always applied to them. The flat 3 euro rate only concerns consignments of 150 euros or less.
Is the 2 euro handling fee already being charged?
No. The EU-wide handling fee is still a proposal under negotiation, with a decision expected around November 2026. Some countries charge their own national fees, but there is no EU-wide 2 euro fee yet.
Official sources
This guide is general information for online sellers, based on publicly available EU legislation. It is not legal advice. Regulations evolve and national rules differ: for decisions that matter to your business, confirm with a qualified professional or the official sources linked above.