From July 1, 2026, the European Union will introduce significant changes to how low-value e-commerce parcels entering the EU are handled at customs. The new rules directly affect shipments valued under €150 and mark the end of long-standing duty-free treatment for most low-value imports.
For global e-commerce sellers and platforms, this is not a minor adjustment, it is a structural shift in cross-border trade with Europe.
What Changes from July 2026?
The most important update is the introduction of a €3 customs duty per item, applied to low-value e-commerce parcels imported into the EU from non-EU countries.
Key elements of the new system include:
- €3 customs duty per item
A flat customs charge is applied per product, based on its tariff code (product type), for parcels valued under €150. - End of the de minimis exemption
The long-standing duty-free threshold for low-value imports is removed, aligning non-EU sellers with EU-based businesses. - Applies to most e-commerce shipments
The change affects approximately 93% of e-commerce flows, including sellers and platforms using the Import One-Stop Shop (IOSS) for VAT.
This reform is designed to level the playing field between EU and non-EU sellers and reduce large-scale abuse of undervaluation practices.
Who Is Affected and Why
Non-EU Sellers and Marketplaces
Global platforms such as Shein, Temu, and AliExpress, along with independent non-EU sellers, will face:
- higher per-item costs
- increased customs compliance requirements
- stricter data accuracy standards
Accurate product classification (HS codes), declared values, and shipment data will become essential to avoid delays, penalties, or shipment holds.
Consumers in the EU
Consumers may notice:
- higher prices on very low-cost imported goods
- fewer ultra-cheap offers from non-EU sellers
Over time, this may shift purchasing behaviour toward EU-based sellers with faster delivery and clearer pricing.
EU-Based Businesses
EU sellers benefit from:
- fairer competition
- reduced pressure from duty-free imports
- improved enforcement of product safety and compliance standards
Over time, this may shift purchasing behaviour toward EU-based sellers with faster delivery and clearer pricing.
Why the EU Is Introducing This Change
The €3 customs duty is a temporary measure, widely seen as a bridge toward the broader EU Customs Reform, including the planned EU Customs Data Hub, expected around 2028.
The reform responds to several systemic issues:
- widespread undervaluation of imported goods
- loss of customs revenue
- challenges in enforcing health, safety, and consumer protection rules
- operational overload at EU borders due to growing parcel volumes
By introducing a flat per-item duty, the EU aims to simplify enforcement while increasing transparency.
What E-commerce Businesses Should Expect Next
Increased Data Requirements
Sellers will need to provide:
- precise HS (tariff) codes
- accurate product descriptions
- correct declared values
- clean, structured shipment data
Poor data quality will directly translate into customs delays.
Logistics and Fulfillment Shifts
Many platforms are expected to:
- expand EU-based fulfillment
- reduce direct-to-consumer shipping from outside the EU
- optimize inventory placement closer to EU customers
This shift reduces customs friction and improves delivery speed.
How SMS Fulfillment Helps Navigate EU Customs Changes
For e-commerce brands shipping to Europe, adapting early is critical.
SMS Fulfillment supports sellers by offering:
- EU-based fulfillment solutions, reducing cross-border customs exposure
- compliance-ready shipping workflows
- accurate customs data handling
- scalable operations aligned with EU regulatory changes
Instead of reacting to new customs rules at the border, SMS Fulfillment integrates compliance directly into fulfillment and shipping operations.
Looking Ahead
The July 2026 customs changes signal a broader trend: e-commerce into Europe is becoming more regulated, data-driven, and compliance-focused.
Businesses that continue to rely on low-transparency, low-cost shipping models will face rising friction. Those that adapt their fulfillment strategy early will remain competitive.
The end of duty-free low-value imports is not a disruption, it’s a new baseline for selling into the EU.
