EU to remove the customs duty exemption for “low value” imports from 2026

1 January 2026

Currently, imports valued at €150 or below can be imported duty free into the EU. However, the European Union has reached an agreement to abolish this exemption during 2026.

Why is the exemption being removed?

EU member states cite several concerns:

• Unfair competition: EU retailers importing goods in bulk must pay duties, while many overseas sellers avoid them by sending individual parcels or undervaluing goods.
• Fraud and undervaluation: EU customs authorities suspect that up to 65% of small parcels may be being deliberately undervalued to stay under the €150 threshold to avoid duties.
• Explosive growth in low-value imports: Over 4.6 billion parcels valued under €150 entered the EU in 2024, straining customs operations.
• Compliance and safety concerns: Many low‑value goods purchased online from outside the EU and sent via post do not meet EU safety and compliance requirements. Border clearance will enforce proper checks, including safety certificates, permits, and licenses before release into free circulation.

How will this be introduced?

From July 2026, the European Council has agreed to apply a fixed customs duty of €3 on small parcels valued at less than €150 entering the EU. This is a temporary measure that will remain in place until a new permanent system for collecting duties comes into force, possibly in November 2026.

Importantly, the €3 duty applies per tariff code in the consignment. This means a single shipment may incur multiple charges if it contains multiple differently classified items. In addition to this charge, several Member States (including the Netherlands, Belgium, France, and Romania) are considering introducing a national handling fee on such parcels. Italy has taken this a step further by introducing a €2 charge on low-value imports starting 1 January 2026.

What does this mean for your business?

Businesses selling low value goods into the EU should expect:

• Higher landed costs for low value products, as the €3 customs duty and potential national handling fees will need to be factored into pricing.
• More complex customs formalities when clearing low values goods.
• Stricter data and compliance requirements for all parcels, including accurate product classification, valuation, and documentation.

What to do next?

We encourage all businesses importing low value goods to:

• Review their current supply chain to understand the financial impact of the upcoming charges and handling fees.
• Engage with logistics partners to prepare for increased customs processing and the need for more detailed shipment data.
• Stay informed as further details emerge regarding the long‑term customs system that will replace the €3 interim duty, as well as any Member State‑specific charges.
• Consider amending your setup to avoid these additional charges – talk to us about assisting with this.

If you need guidance on how these changes may affect your business, we would be happy to discuss the implications with you. We can also help you explore alternative trading or fulfilment models that may reduce delivery times and customs costs.