Preparing Your Business for the €3 Customs Duty on Low-Value E-Commerce Imports

What’s Changing from 1 July 2026

• The de minimis customs duty exemption (allowing imports up to €150 with no duty) is being abolished by Council Regulation (EU) 2026/382. Instead, a flat duty of €3 per item will apply for distance sales of imported goods (DSIG) in consignments with intrinsic value ≤ €150. (taxation-customs.ec.europa.eu)
• A Product Identifier (PID) will become mandatory from 1 November 2026 for customs declarations on DSIG imports, to improve traceability and enforce compliance. (taxation-customs.ec.europa.eu)
• These rules are temporary until 1 July 2028, when the EU Customs Data Hub is expected to be operational, after which goods may be subject to normal customs duties based on TARIC classification. (taxation-customs.ec.europa.eu)

How VAT and Customs Declarations Are Affected

• The VAT e-Commerce guidelines have been updated. Under IOSS (Import One Stop Shop), import VAT continues to be charged at sale, and the €3 duty is not included in the VAT-taxable base in this case. (vat-one-stop-shop.ec.europa.eu)
• Under “Special Arrangements” or standard procedures, import VAT is due at release, and carriers or postal operators typically collect VAT from the customer and remit to authorities. For those, the €3 customs duty affects customs declarations and may affect VAT receipts. (vat-one-stop-shop.ec.europa.eu)
• Import declarations must include appropriate codes (e.g. F48, F49, F53) depending on the VAT procedure and whether prohibitions & restrictions (P&R) apply. (webgate.acceptance.ec.europa.eu)

Practical Examples

• Small online retailer in Germany selling goods from China worth €50 per item: From 1 July, each imported item incurs €3 customs duty; if using IOSS, VAT was already collected at sale and the €3 duty isn't part of the VAT base. However, compliant use of correct declaration codes and ensuring carriers apply correct procedure are essential.
• Consumer orders makeup kits under €150: Now the €3 duty and any applicable VAT must be declared or collected—expect additional charges on delivery unless IOSS or another simplified scheme applies.

Actionable Steps for Businesses

1. Update your checkout systems and shipping partners to show customers the possible €3 customs duty in advance or clearly in T&C’s when distance sales from non-EU suppliers are involved.
2. Choose correctly your VAT and customs schemes (IOSS vs Special Arrangements vs Standard Procedure) depending on marketplace/platform, value of sales and capacity to comply with VAT and customs obligations.
3. Implement PIDs so that your products are correctly identified—ensure your product data includes identifiers to be declared once PIDs mandatory.
4. Monitor national customs IT systems to ensure they align with EU implementing acts; test your import declarations with correct codes (F48, etc.).
5. Train staff involved in logistics, customs, and finance to understand new rules—errors could lead to delays or fines.

Why This Matters

• The measure levels the playing field among EU and non-EU sellers in e-commerce, combats non-compliance in safety/standards, and helps customs authorities track unsafe goods. (taxation-customs.ec.europa.eu)
• For companies, early compliance avoids unexpected costs and can help maintain good customer experience.

Summary: The €3 flat duty per low-value item will change e-commerce imports substantially. From 1 July 2026, businesses involved in online distance sales must adjust systems, understand the interplay between VAT and customs procedures, and prepare for mandatory PIDs. With proper planning, you can turn this into a compliance advantage.