Part 1: The EU Import Duty Changes — Timeline & Context ▶ Watch (0:00)

Background
Significant changes to how low-value goods are taxed on entry into the EU are now underway, with multiple phases rolling out across 2026. Fitch opens the session with a brief overview of Glopal — a cross-border e-commerce solution covering international marketing, localization, tax, and duty compliance — before handing to Cyril, General Counsel, to walk through the regulatory landscape.

Phase 1: National early adopters — Italy & Romania ▶ Watch (2:35)
Italy and Romania introduced national handling fees from January 1, 2026 — designed to offset customs administration costs for low-value imports. Romania charges a small per-shipment fee collected at the last mile. Italy introduced a per-HS-code charge, though as of mid-March the Italian tax has been postponed to July 1, 2026.

Phase 2: France (March 2026) ▶ Watch (4:48)
France became the third country to implement a new tax — €2 per HS code — effective March 1, 2026. This applies to all non-EU imports below €150, across B2B, B2C, and C2C transactions. Geographically, scope extends to Monaco and French overseas territories including Guadeloupe, Martinique, and Réunion.

Phase 3: EU de minimis removal — July 2026 ▶ Watch (4:51)
From July 1, 2026, the EU de minimis threshold is removed across all 27 member states. All goods below €150 will face a flat €3 duty fee per HS code at the border — a fundamental shift from today's duty-free treatment for low-value imports.

Phase 4: Harmonised EU handling fees — November/December 2026 ▶ Watch (5:31)
A pan-European €2 handling fee per HS code is due to come into force before year end. Critically, this stacks on top of the Phase 3 €3 duty — meaning merchants shipping a parcel below €150 into the EU will face a combined €5 per HS code from this point. Phases 1 and 2 are transitional measures that will be replaced by this EU-wide framework.

Part 2: The French Tax in Detail ▶ Watch (6:36)

Who is the taxable person? ▶ Watch (8:17)
Liability falls on whoever is named on the customs declaration for import VAT purposes. For merchants using the IOSS regime, the tax must be declared separately via France's dedicated import portal — it cannot be included within an existing IOSS return. Merchants registered for IOSS outside France (e.g., Ireland) will need to register directly in France to handle this additional declaration.

IOSS regime explained ▶ Watch (9:18)
The Import One-Stop Shop (IOSS), introduced July 2021, allows sellers to register in a single EU country and declare import VAT for all 27 member states through one portal. While this simplifies VAT compliance, the new French tax sits outside the IOSS framework and requires a separate filing.

Worked example: calculating the real cost ▶ Watch (11:49)
Take a €130 parcel with items across two HS codes (e.g., one dress and two t-shirts). The French tax is €2 per HS code = €4. For merchants not using IOSS, VAT is added on top of the tax, bringing the real cost to €4.80 per parcel. For DDU shipments, carriers will also charge a collection fee of an estimated €5–€10, meaning the total customs cost to the buyer could reach €12–€14 for a single low-value parcel.

How to mitigate the French tax ▶ Watch (13:28)
Two current options exist for France and Italy (Romania is not avoidable as the fee is collected at last-mile delivery):

1. Route via a neighbouring country: Clear customs in the Netherlands or Belgium (where no national fee applies), then move goods intra-community to the French end customer. This is a legal loophole — not tax evasion — but it will close when the EU-wide handling fees come into force later in 2026.
2. Use Glopal's registered IOSS status in France: Glopal manages VAT collection and remittance of the new tax on behalf of merchants, removing the administrative burden while maintaining a direct import flow into France.

Part 3: How Glopal Can Help — Patrick, CEO ▶ Watch (15:58)

Solution 1: Tax Shield — real-time duty calculation ▶ Watch (16:15)
Glopal calculates tax and duties in real time at checkout, reflecting changes within 24 hours of any regulatory update (as demonstrated when Italy paused its tax in mid-March). Merchants can choose to display a separate duty line in checkout or bake costs into product pricing. Glopal remits all taxes using its own registered tax IDs across France, Europe, and most major markets worldwide — no merchant registration required.

Solution 2: B2B2C bulk import model ▶ Watch (18:24)
For merchants doing significant volumes, Glopal can consolidate individual parcels into a virtual pallet — a single customs declaration above the €150 threshold. This removes exposure to the new per-HS-code fees entirely. The process is handled virtually through adapted shipping documentation, with no warehouse touchpoint required. Goods move directly from the merchant's warehouse to European buyers via break-bulk carrier services.

Custom clearance via Netherlands ▶ Watch (19:53)
Glopal can set up Netherlands-based customs clearance for merchants who want to avoid the current French national fees while maintaining direct delivery to French customers. A solution available to merchants of any volume, not just large operators.

Duty drawback for returns ▶ Watch (20:21)
For merchants with high return volumes, Glopal automates the duty drawback process — archiving all relevant documentation and reclaiming paid duties once proof of return is confirmed. Reimbursement typically takes a few months but can represent meaningful savings at scale.

Q&A Highlights ▶ Watch (21:09)

We've never had to classify low-value products before. How important is HS code accuracy? ▶ Watch (22:02)
Classification has become critical. Misclassifying goods risks applying the wrong duty rate — both now under the €3 flat fee and especially from July 2028, when regular ad valorem duty rates replace the flat fee entirely. Glopal offers automated HS code classification tools covering both low-value and above-€150 goods.

We sell on Amazon France and use Amazon's IOSS number. Who declares the €2 liability? ▶ Watch (23:57)
Where Amazon is the IOSS holder, Amazon should be responsible for declaring and remitting the new tax. The recommendation is to check directly with your Amazon account manager, as Amazon is expected to have a published FAQ covering this scenario.

Should we absorb these new costs, pass them on, or is there a smarter approach? ▶ Watch (24:59)
There is no single answer — it depends on margin and price elasticity. Absorbing the cost and including it in displayed prices produces better conversion rates. Where margins are tight or the category is competitive, adding a separate checkout line may be the only viable option. Glopal can model both scenarios.

Is the €2 handling fee definitely on top of the €3 duty? Are we looking at both hitting the same shipment? ▶ Watch (26:15)
Yes. From July 1 in France, merchants will face the combined €3 duty plus €2 handling fee — totalling €5 per HS code per parcel below €150. A parcel with three different HS codes could face €15 in charges — nearly 10% of a €150 parcel value.

Does the €3 duty apply per parcel or per product type for mixed orders? ▶ Watch (26:59)
The fee applies per HS code within the parcel — not per parcel. The first check is parcel value: if the total is above €150, the low-value fees do not apply and the parcel falls under standard customs clearance. Below €150, each distinct HS code in the parcel triggers a separate charge.

If you use the bulk/break-bulk model, are you then liable for duty on the whole shipment? ▶ Watch (28:32)
The bulk shipment clears customs as a single H1 declaration above €150, moving it out of the low-value goods regime. Regular duty rates then apply to the total pallet value. However, many UK-origin goods benefit from trade agreements with the EU that reduce or eliminate those duties — meaning in many cases merchants can move from the €5 per HS code exposure to effectively zero. Glopal has tools to model the optimal scenario for individual product mixes and volumes.