On 2 June 2026, the European Commission published its official guidance notes on the new €3 customs duty on low-value e-commerce shipments into the EU. With less than a month to go, here is a practical summary of what is changing, how it works, and what it means depending on your current setup.
WHAT IS CHANGING on JULY 1
Until now, goods valued under €150 imported into the EU were exempt from customs duty. That ends on 1 July 2026.
A flat-rate customs duty of €3 per item type — determined by the goods' customs tariff (HS) code — will apply to all e-commerce distance sales with an intrinsic value under €150, regardless of how VAT is handled.
This is a temporary measure, in force from July 2026 to July 2028, ahead of the EU's full customs reform which will abolish the €150 threshold entirely.
HOW THE 3€ DUTY WORKS
It's per HS code, not per parcel. A single shipment containing items of different tariff classifications triggers multiple €3 charges — one per distinct 6-digit HS code. A parcel delivered to France with two t-shirts and a pair of shoes (two HS codes) generates €6 in duty:
| Cost element | Calculation | Amount |
|---|---|---|
| Customs Duty | 2 line items × €3 | €6.00 |
| VAT on duty | €6.00 × 20% | €1.20 |
| Total additional cost | €7.20 |
The country of origin plays no role in the calculation, except when the parcel contains goods subject to prohibitions and restrictions, which forces the use of the more detailed standard declaration.
The duty is a customs debt — paid to customs at import, not via IOSS. As the declarant, the IOSS holder is legally responsible for the customs debt: ensuring the €3 per item is paid to customs authorities at the point of import clearance. This is separate from the monthly IOSS VAT return. In practice, the carrier or customs broker pays the duty to customs on the IOSS holder's behalf and invoices them for it. How the IOSS holder recovers that cost — whether by collecting it at checkout, building it into the product price, or absorbing it — is a commercial decision.
HS codes become mandatory for all products. Accurate classification at minimum 6-digit level is now required for every item you ship to the EU, including low-value ones.
No refund on returned goods. There is currently no mechanism to recover the €3 duty on items that are returned.
IOSS Matters More Than Ever After July 1
The €3 duty applies to all distance sales under €150 — with or without IOSS. However, parcels clearing through IOSS are expected to clear faster and with lower cost overhead.
With IOSS, duty and VAT is collected from the buyer at checkout, and the parcel can continue to be cleared at a central EU entry point (as today). While the IOSS holder becomes the legal customs declarant, responsible for the applicable 3€ duties, carriers' customs brokers are expected to pay the customs duties in practise (and collect paid duties from the merchant later). The IOSS holder will continue remitting collected VAT monthly in the IOSS registered member state.
Without IOSS, your carrier will now have to clear each parcel in the final destination country — a major operational change that adds routing complexity and can extend delivery timescales. Moreover, the more detailed customs declaration format required for non-IOSS shipments will likely attract higher processing fees from carriers and brokers.
IOSS was already the recommended route for a smooth EU import experience. From 1 July, with duties now applying to all shipments, the gap in customer experience between IOSS and non-IOSS widens further.
EXPECTED CHANGES BEYOND JULy 1
ADDITIONAL CUSTOMS HANDLING FEE
Separately from the €3 duty, the EU is working on an additional customs handling fee — expected €2 per consignment — to offset the administrative costs customs authorities incur processing high volumes of small parcels.
This new handling fee is anticipated from November 2026 and and expected to replace all existing interim custom handling fees put in place by different member states, in particular:
- 🇫🇷 France: €2 per HS code on parcels under €150, in effect since March 2026
- 🇮🇹 Italy: €2 per consignment for IOSS shipments, currently paused till July 2026
- 🇷🇴 Romania: ~€5 per imported parcel, in effect since January 2026
PRODUCT IDENTIFIERS BECOME MANDATORY
From 1 November 2026, all EU distance sale imports will be required to include product identifiers (PIDs) in customs declarations. The objective is to give customs authorities better tools to identify and act on non-compliant goods at scale.
Two identifiers will be mandatory for every shipment:
- Merchant Product Identifier: the product code used by your online store or platform to identify the item — typically your SKU or listing ID.
- Manufacturer Product Identifier: a product code assigned by the manufacturer or product supplier, used for supply chain and inventory purposes.
A third code — a standardised global identifier such as an EAN or GTIN barcode — must be provided where one exists for the product.
Non-compliance risks clearance delays or rejection.
WHAT SHOULD MERCHANTS DO NOW?
We recommend merchants take the following actions in preparation for these changes:
- Review product classification: Ensure every product in your EU catalogue has a valid HS code (minimum 6-digit).
- Review product pricing: Review how the €3 duty per HS code affects your EU pricing and margins.
- Clarify IOSS status: Review your IOSS setup, and clarify the duty remittance process with your carriers.
- Prepare product identifiers: Review available product identifiers, and plan collecting manufacturer product identifiers if not yet available.
- Clarify open questions: Reach out to Glopal or your carriers in case you need further guidance.
HOW GLOPAL CAN HELP MERCHANTS
Glopal provides a comprehensive solution to manage these new complexities without disrupting your operations:
- Product HS code classification: Glopal's AI-driven product HS classifier can automatically assign correct customs tariffs to your products based on available product information, ensuring you collect and pay the correct duty amount.
- Accurate landed cost at checkout. Our T&D engine calculates the €3 flat duty per line item alongside national fees and VAT in real time, giving buyers a transparent DDP price with no surprises at delivery.
- IOSS management: Glopal can act as the deemed supplier for your IOSS transactions, removing the need for you to register for IOSS individually and manage the increasingly complex tax filings.
- Report mandatory product identifiers: If you use Glopal's shipping solution, we will guide you on how to pass through mandatory product identifiers to your carrier and on shipping documentation, ahead of the November deadline.
July 1 is weeks away. Contact us to ensure your EU setup is ready from day one.