On July 1, 2026, the European Union will introduce a fixed customs duty of €3 on small parcels valued under €150 that enter the EU—mostly e-commerce shipments to consumers. This is a temporary measure adopted by EU countries. When will you pay the €3 customs duty on small parcels?
How the new €3 customs duty on small parcels in the EU works
- Flat rate: €3 customs duty.
- “Per tariff item”: the €3 charge applies to each different item in the shipment according to its tariff heading (HS code).
- Scope: Goods in small consignments (<€150) delivered to EU consumers from non-EU sellers.
- IOSS linkage (initially): From July 2026 the duty applies to goods sold by non-EU traders registered in the EU’s Import One-Stop Shop (IOSS) for VAT.
- Separate from VAT and any ‘handling fee’: This customs duty is in addition to VAT and distinct from any proposed operational handling fee currently discussed under the broader customs reform and EU budget talks.
Why the EU is doing this now
EU finance ministers point to the explosion of small parcels entering duty-free under the current rules for sub-€150 items, alongside rampant undervaluation used to avoid duties. The €3 flat duty is meant to be a simple, quickly deployable fix while the EU readies a permanent overhaul of customs for e-commerce. That overhaul, already agreed in principle in November 2025, will eliminate the duty-relief threshold and apply normal EU tariff rates to low-value goods once it takes effect.
What it means for buyers and sellers
- If you buy to the EU: take into account an extra €3 per tariff item in the parcel on top of VAT. Final checkout cost may vary depending on whether the seller is in IOSS and how the platform/logistics provider presents charges.
- If you sell to the EU as a non-EU seller and platform: Update product classification (HS codes), checkout logic, and customs data flows so the €3/item duty is correctly applied and reported from July 1, 2026. Monitor developments in case the scope expands beyond IOSS sellers.
Frequently asked questions about the €3 fee
- When does the €3 fee apply? From July 1, 2026.
- Is the €3 fee charged instead of VAT? No, as VAT is calculated separately.
- How will the fee be calculated? The fee will be charged for each product code in the shipment note. If three ordered items share a tariff code (e.g., women’s cotton blouses), the additional fee will be €3. However, if the codes are different (e.g., a women’s cotton blouse, a blouse made of man-made fiber, and a silk blouse), the fee will be charged for each item (€9).
- Is the €3 fee a permanent solution? According to official announcements, it is a temporary solution.
- Will shipments from Temu, Shein, AliExpress, etc., be more expensive? Yes, shipments from outside the EU are subject to an additional temporary €3 fee from July 2026.