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Customs Duty on Low-Value Imports: What Businesses Should Know from the €3 Flat Fee Rule

The EU has abolished the de minimis VAT/duty exemption for low-value imports, introducing a temporary €3 customs duty per low-value item until mid-2028—key for e-commerce and cross-border retailers to understand.

By NomadicTax Research Team · 5-8 min read

What’s Changing: Low-Value Imports Under New EU Customs Rules

From 1 July 2026, the EU removed the duty-free de minimis threshold for consignments up to €150 and replaced it with a flat customs duty of €3 per item for low-value imports from outside the EU. This regime will be temporary, in place until 1 July 2028. (taxation-customs.ec.europa.eu)

To enhance safety and compliance, Product Identifiers (PIDs) become mandatory from 1 November 2026 (voluntary earlier), helping customs authorities trace and screen goods. (taxation-customs.ec.europa.eu)

Who Is Affected

  • E-commerce companies and online marketplaces importing goods into the EU from non-EU countries.
  • Sellers outside the EU offering direct sales to EU consumers.
  • Consumers may indirectly see higher costs, but primary obligations fall on the importers or sellers (or their representatives), not consumers directly. (taxation-customs.ec.europa.eu)

What Businesses Need To Do

  • Revise pricing models: integrate €3 per item duty into cost projections for product lines shipped from non-EU locations.
  • Ensure PID compliance: begin voluntarily declaring Product Identifiers from 1 July 2026; compulsory as of 1 November 2026.
  • Update logistics agreements: decide who (seller, platform, importer) is responsible for declaring and paying the flat fee.
  • Check for goods excluded: preferential trade agreement goods, certain customs union goods may be exempt under specific rules.

Practical Example

Say an e-commerce retailer based in the US sells three accessories (watch, T-shirt, hat) in one parcel to a customer in Germany. Previously, if the total was under €150, they owed nothing extra. Under the new rule:

  • It's €3 × 3 items = €9 duty applies, since each item counts separately.
  • From 1 November 2026, each of these items must have a valid PID declared.

Strategic Tips for Long-Term Planning

  • Use economies of scale—large single-item parcels may prove more efficient.
  • Consider centrally warehousing items inside the EU to avoid repeated customs steps.
  • Monitor compliance tools/platforms which support PID-tracking and customs declarations.

Key Dates to Mark in Calendar

DateEvent
1 July 2026€3 flat fee begins; PID voluntary declaration begins.
1 November 2026PID becomes mandatory.
1 July 2028Temporary flat fee regime ends; new customs data systems expected.

Bottom line

This new low-value import duty abolishes a long-standing loophole and levels the playing field for all sellers. For businesses involved in online cross-border sales into the EU, immediate adjustments are needed in pricing, compliance, and logistics. It’s not just about cost—it’s about staying lawful and competitive.

Sources

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