EU scraps de minimis exemption and introduces €3 parcel tariff from 1 July
The European Union will this summer scrap the longstanding Customs duty exemption on parcels valued at under €150, replacing it with a new flat-rate tariff of €3 per item. It’s a move the international delivery expert Parcelhero says will reshape cross-border e-commerce between the UK and the EU’s 440 million consumers.
From 1 July, 2026, a flat Customs duty of €3 will apply to Business to Consumer (B2C) parcels under €150 entering the EU. Crucially, the €3 duty will apply per item classification – meaning that if a single parcel contains multiple different types of items, the duties can stack up significantly.
Parcelhero’s head of consumer research, David Jinks MILT, says: ‘This is a watershed moment for UK online retailers selling into Europe. The de minimis exemption – the Customs duty-free threshold on parcels worth less than €150 – has been a cornerstone of cross-border e-commerce since long before Brexit. Its abolition changes the economics of selling to EU consumers overnight.
‘What makes this particularly complex for UK retailers is the per-item nature of the charge. A parcel containing, say, a pair of shoes, a belt and a scarf – each with a different tariff classification – could attract three separate €3 charges, totalling €9 in Customs duties alone. For low-margin retailers, that is a very significant hit.
‘The European Commission published an official guidance document on 8 June for implementing the new flat-rate €3 Customs duty, just weeks before the start date. The late publication has caused alarm among logistics operators. A coalition of international carriers have written jointly to EU finance ministers urging a phased approach to the bloc’s new Customs rules for low-value parcels, warning that key elements of the framework are not ready for the 1 July 2026 start date. The carriers warned of supply chain bottlenecks and an impact on the availability of some medical supplies.
‘In their letter to ministers, the companies called for a phased approach: proceeding with the €3 flat-rate duty per item from 1 July, while deferring the more complex and unresolved elements until they are legally certain and operationally viable.
‘That said, the EU’s motivations for reform are understandable. The explosive growth of ultra-low-cost Chinese e-commerce platforms such as Shein, Temu, and AliExpress has flooded European markets with duty-free goods. This has long been seen as creating an unfair playing field for EU-based businesses. The de minimis loophole essentially allowed overseas sellers to undercut domestic retailers on price by avoiding the duties that European businesses must absorb.
A new patchwork of handling fees
‘The abolition of the de minimis rule could be followed later in the year by a separate €2 processing fee, expected in November 2026. Adding further complication for exporters, some EU member states are already introducing their own local fees and requirements in parallel with the EU-wide reform. Romania was an early mover, introducing a RON 25 (approximately £4.35) logistics tax from 1 January, 2026, on items posted from outside the EU valued under €150. France followed, introducing a €2 small parcel tax from 1 March, 2026, applying per classified HS code in a parcel. Italy is introducing its own €2 Customs administration fee from 1 July, 2026.
‘The patchwork of national charges emerging across member states is a real headache, UK retailers can no longer treat “exporting to the EU” as a single, uniform exercise. They now need to understand the specific requirements and fee structures of each individual destination country, on top of the new EU-wide tariff. That is a substantial compliance burden, particularly for smaller businesses.
‘The EU has made clear this is a transitional measure. The €150 de minimis threshold will be fully removed and a new EU Customs Data Hub – replacing 27 national systems – is expected to be operational around 2028, at which point a full Customs regime will apply to all parcels with automated duty calculation. But between now and then, UK retailers face a period of significant uncertainty and increased cost.
‘Our strong advice to any business shipping B2C goods to the EU is to act now. Audit your product catalogue, ensure your HS codes are accurate and up to date, understand how your shipping costs will change, and decide clearly whether those additional duties will be absorbed by your business or passed on to the customer. Clarity for the consumer at checkout will be essential – there is nothing more damaging to customer loyalty than an unexpected bill at the door.’
‘One final piece of food for thought. It appears that companies based in Northern Ireland and shipping from there to European Union destinations will not be impacted by the new flat Customs duty, as Northern Ireland effectively remains inside the European Union as part of the Windsor framework agreed between the UK and EU.