EU Customs Update
EU to Remove Duty Exemption for Low-Value Parcels from July 1, 2026
New temporary fixed duty and product identification requirements may reshape cross-border e-commerce logistics into the European Union.
Key Takeaway
According to the latest announcement from the European Commission, from July 1, 2026, the EU plans to remove the customs duty exemption for imported goods valued below EUR 150. A temporary fixed duty of EUR 3 will apply to low-value consignments from outside the EU until July 1, 2028.
The European Union is moving forward with a major customs reform targeting low-value imported parcels, especially those linked to cross-border e-commerce. The new measure is expected to affect sellers, platforms, logistics providers, and importers shipping small parcels into the EU market.
Under the new arrangement, the temporary EUR 3 fixed duty is not simply calculated as EUR 3 per parcel. Instead, it may be charged based on the different customs classification items contained within the same parcel.
For example, if a parcel contains only one type of product, such as T-shirts, the fixed duty may be EUR 3. However, if the same parcel contains both T-shirts and watches, which fall under different customs classifications, the duty may be charged separately and could reach EUR 6.
Why Is the EU Introducing This Change?
Media reports show that approximately 4.6 billion low-value parcels valued below EUR 150 entered the EU market in 2024. By 2025, this figure had reportedly increased to around 5.8 billion, representing year-on-year growth of about 26%.
The European Commission has previously stated that around 91% of these low-value parcels originated from China. The rapid increase in parcel volume has created growing pressure on customs supervision, product safety checks, and fair competition within the EU market.
In addition, the European Commission estimates that around 65% of small parcels entering the EU may involve undervaluation, meaning the declared value is lower than the actual value in order to avoid customs duties.
Product Identification Code: Voluntary First, Mandatory Later
According to the EU’s current explanation, from July 1, 2026, the temporary EUR 3 fixed duty will begin to apply, and the Product Identification Code, also known as PID, may be declared on a voluntary basis.
From November 1, 2026, PID declaration is expected to become mandatory. This requirement is intended to improve product traceability, customs risk control, and safety inspection capabilities for low-value imported goods.
Separate EU Customs Handling Fee Still Under Discussion
In parallel with the PID requirement, the EU is also discussing a separate customs handling fee for low-value e-commerce parcels. This fee is currently still at the proposal stage.
Previous media reports indicated that the European Commission had proposed a handling fee of EUR 2 per parcel for low-value e-commerce shipments. However, this measure has not yet been finalized, and businesses should continue to follow official updates.
What Does This Mean for Importers and Cross-Border Sellers?
For companies exporting to Europe, the upcoming changes may increase the importance of accurate product classification, correct customs valuation, and complete shipment data. Sellers who rely heavily on low-value parcel models may need to review their pricing, logistics channels, and compliance processes before the new rules take effect.
The new rules may also encourage more businesses to shift from fragmented small-parcel shipments to more structured logistics solutions, such as consolidated shipping, overseas warehousing, or DDP delivery models with clearer customs documentation.
How Vastlog Supports EU-Bound Shipments
As customs requirements continue to evolve, reliable documentation and transparent logistics planning are becoming more important than ever.
Vastlog provides international logistics solutions for global importers, exporters, and cross-border businesses, including ocean freight, air freight, customs clearance support, DDP shipping, warehousing coordination, and door-to-door delivery services.
For shipments to Europe, our team can help customers better understand shipping options, prepare logistics documents, and plan suitable transportation solutions based on product type, destination, delivery timeline, and compliance requirements.
Recommended Actions for Businesses
- Review product HS codes and customs classification accuracy.
- Avoid undervaluation and ensure declared values match actual transaction values.
- Prepare for future PID requirements and improve product data management.
- Evaluate whether small-parcel shipping remains the most cost-effective model.
- Consider consolidated shipping, DDP solutions, or EU warehousing where appropriate.
- Stay updated with official EU customs policy developments before July 2026.
The removal of the EUR 150 customs duty exemption marks an important shift in EU import regulation. For businesses shipping to the European market, early preparation can help reduce compliance risks, avoid unexpected costs, and maintain smoother delivery performance.
If you are planning shipments to the EU and need support with logistics solutions, customs documentation, or DDP delivery planning, Vastlog is ready to assist.
Need a Reliable Logistics Partner for EU Shipments?
Contact Vastlog to discuss your shipping plan and find a suitable logistics solution for your European market.
Disclaimer: This article is for general informational purposes only and should not be considered legal or customs advice. Businesses should refer to official EU customs announcements or consult qualified customs professionals for final compliance decisions.
