What’s changing in EU customs?
Under the EU Customs Reform, the European Union will remove the customs duty exemption for low-value imports starting July 1, 2026. Previously, imported goods in a shipment with an intrinsic value not exceeding €150 could enter the EU without paying import duty under what is known as “de minimis”, an exemption from duty being applied.
The European Union introduced these new rules to level the playing field for EU retailers and protect consumers from non-compliant products. These changes will apply to anyone (businesses, ecommerce sellers, marketplaces, and consumers) receiving international shipments, and they may influence how you ship and sell across borders.
Effective July 1, 2026:
All commercial imports (B2C and B2B) into the European Union will be subject to customs duty, regardless of value.
A new €3 customs duty will be applied to low-value B2C shipments (up to €150 of the total item value), charged per customs entry line (per unique HS Code AND Country of Origin of the products) on the customs declaration.
B2B shipments will be charged by the standard duty rate, or a preferential rate under a trade agreement, where the relevant conditions are met.
The VAT rules for imports into the EU remain unchanged (the VAT de minimis exemption was removed in 2021, and all goods imported into the EU are subject to VAT, regardless of value).
ⓘ By European Commission definition, B2C shipments are shipments sent to non-VAT-registered recipients.
The new €3 customs duty example
Effective November 1, 2026:
A separate €2 handling fee per customs declaration line item is also expected no later than November 1, 2026. Unlike the €3 flat-rate duty, which applies to e-commerce imports valued at €150 or less, the €2 handling fee is expected to apply to e-commerce imports of any value. For low-value shipments where both charges apply, the combined charge would be €5 per customs declaration line item once both measures are fully implemented.
Who owes the duty to EU customs?
Mentioned in the EU Customs Reform Guidance, the reform also shifts accountability of who owes the duty to EU customs. As of July 1, 2026, the declarant of the shipments (not the consumer or receiver) is responsible for the customs debt.
The declarants under EU terms:
The IOSS holder, typically the seller or marketplace.
The IOSS holder's indirect representative.
An importer representative.
Any other person who is able to provide all of the information required and present the goods or have them presented to customs (for example: a third‑party declarant, carrier, or postal operator).
ⓘ This is also the main reason why FedEx rebills the duty/tax back to sender if the receiver refuses or fails to pay. Learn more →
New requirement: Product Identifiers (PIDs)
For each product imported into the EU customs territory in a shipment with an intrinsic value not exceeding €150, the EU Commission is introducing a new mandatory requirement to be provided by the sender, namely:
Merchant Product Identifier (M-PID): the merchant’s unique code to identify goods, usually the SKU (Stock Keeping Unit), item code or product code. No specific structure is required: it is up to the merchant to define it.
ⓘ If you don't have SKU yet, just create one. Learn more here.
Non-standardised Manufacturer Product Identifier (NS-PID): a manufacturer or product supplier’s unique code, assigned to an individual product. No specific structure is required: it is up to the manufacturer to define it.
ⓘ Ask your manufacturer. Or if you self-manufactured your own product, just create one - the same way you create the SKU.
Standardised Manufacturer Product Identifier (S-PID) (only if it exists): assigned by a global industry standard body with a bar code when the manufacturer’s product meets global standards from a governing body, such as GTIN (Global Trade Item Number), EAN (European Article Number) for many products, and the ISBN (International Standard Book Number) for books. The barcode is the same for every retailer selling the exact product.
ⓘ S-PID is not mandatory. You can leave this empty if you don’t have one.
⚠️ Missing these PIDs will lead to entry rejection by EU customs authority and the shipment may be directly returned to sender. For shipments with Total Item Value ≤ 150 EUR, you must provide your PIDs on the provided fields:
ⓘ We’re also preparing to automatically pull your Shopify product SKU into M-PID field for a more convenient process. If you don't have SKUs yet, learn more here.
IOSS Shipments
The EU introduced the Import One-Stop Shop (IOSS) on July 1, 2021, to simplify VAT collection for cross-border e-commerce sales.
If you have your own IOSS, or the sales was made via an IOSS-registered marketplace, ensure to follow these:
Confirm that your shipment is to a consumer (B2C), and not to a business (B2B). IOSS is only eligible for B2C e-commerce shipments.
Ensure the Total Item Value in your shipment is not exceeding €150. IOSS can only be used for B2C shipments up to this value.
Enter your IOSS number in the Ship To details:
• Type of Tax ID: IOSS
• ID Number: IOSS Number (12-character)
Do not add any additional letters, numbers, or other characters – otherwise the IOSS number may not be recognized.Ensure the Ship To > Company field is empty. And do not include any kind of name of a business in the Ship To address if you want to use the IOSS. If you do, customs authorities are likely to treat your package as a B2B shipment and ignore your IOSS number.
Do not mark your shipment purpose as Gift, Sample, Donation, Return Product, or Other. IOSS is only eligible for Merchandise (Goods Sold).
⚠️ IOSS does not cover the duty. IOSS handles VAT. The €3 customs duty is a separate obligation. A merchant with an IOSS number who assumes they're covered is wrong. The regulation explicitly ties the IOSS registration to the seller's customs debt, meaning IOSS now anchors both VAT and customs liability, not just VAT.
European Union countries
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Republic of Ireland, Italy, Latvia, Liechtenstein, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.
Our recommendation: DDP
As the reform also shifts accountability: Sellers, or their logistics partners, become the effective importers of record and customs debtor, shipping with Delivered Duty Paid (DDP) term for EU destinations is highly recommended.
DDP provides a better delivery experience and eliminates the risk of the receiver refusing or failing to pay import duties and taxes.
ⓘ Learn more about DDP (Duty and Tax Billed to Sender) →
More details about EU Customs Reform
For an in-depth look at how this impacts your supply chain or to prepare your e-commerce operations, check these references: