Europe has long been one of the most attractive international markets for ecommerce brands, with more than 450 million consumers across the European Union. But that growth has also been fueled by a key policy that made it easier to ship low-value goods into the region.
In 2025 alone, the EU received more than 5.8 billion low-value ecommerce parcels, highlighting just how significant this channel has become.
On July 1, 2026, the EU’s e-commerce customs changes officially went into effect, completely removing the €150 duty-free de minimis threshold. In its place, a temporary €3 customs duty is now live, applying directly to each customs declaration line for low-value consignments under €150.
This flat-rate bridging duty is expected to remain in place until 2028, when the EU’s broader customs reform takes effect.
For brands that rely on direct-to-consumer shipping into Europe, the implications of this shift are highly significant, requiring immediate changes to pricing, clearance, and fulfillment strategies to remain compliant.
The End of Duty Free Treatment for Low Value Goods
As of July 1, 2026, the EU removed the €150 duty de minimis threshold, meaning all goods imported into the region are subject to customs duties regardless of value.
Until now, many ecommerce shipments entered the EU without duty, even though VAT still applied. That made it easier for brands to test demand, maintain competitive pricing, and scale into new markets with fewer cost barriers.
Brands can expect:
- More shipments subject to duty
- Higher landed costs on low value orders
- Increased pressure to provide full pricing transparency at checkout
The New Flat Duty on Small Parcels
As part of the transition, the EU has agreed to introduce a temporary flat €3 customs duty per item category for low-value ecommerce imports.
This fee is applied at the product category level based on HS6 classification, not quantity. That means shipments containing multiple product types may incur multiple charges.
For example:
- A shipment with two t-shirts (same product type) may incur one fee
- A shipment with a t-shirt and a pair of jeans (different product types) may incur two separate fees
While the amount may appear small, the structure introduces new cost layers and operational complexity, especially for brands shipping bundles or mixed carts.
The €3 duty, which took effect on July 1, 2026, and applies to goods valued under €150, is part of a broader EU customs overhaul, with additional reforms expected as the region moves toward a more centralized and standardized approach to ecommerce imports. For an ongoing guide on EU customs changes see: EU Customs Changes 2026: An Ongoing Guide for Ecommerce Imports
Fees Are Rolling Out at the Country Level
Even ahead of the EU-wide changes, several countries have already introduced new fees on ecommerce imports.
Confirmed measures include:
Romania: 25 RON (~€5), applied per parcel. Effective January 1, 2026.
France: €2, applied per customs declaration line item. Effective March 1, 2026.
Italy: €2, applied per parcel. Effective October 1, 2026; postponed.
More countries are expected to follow as the EU moves toward a unified framework.
These fees are separate from both VAT and customs duties and may apply even when taxes are prepaid. Together with new duties, they create a more layered cost structure for low-value ecommerce imports.
In some cases, they are based on where goods are cleared, rather than where they are ultimately delivered. For example, some countries apply fees based on the point of customs clearance, while others apply them based on the final delivery destination.
In parallel to these independent national fees, a harmonized EU-wide €2 customs handling fee is expected to take effect no later than November 1, 2026. Crucially, this fee applies per customs declaration line item, not per parcel. Unlike the €3 flat duty (which applies to low-value imports under €150), the €2 handling fee applies to e-commerce imports of any value. For low-value shipments where both EU charges apply, they will be combined to create a single charge of €5 per customs declaration line item.
What This Means for Ecommerce Brands
These changes are not just regulatory updates. They signal a broader shift in how ecommerce imports are treated in one of the world’s largest consumer markets.
For brands, the impact shows up in several ways:
Costs are rising
With duty applied to all shipments, even low-value orders may become less profitable without pricing adjustments.
Checkout expectations are changing
Customers are less willing to accept surprise fees at delivery, making upfront pricing accuracy more important.
Operations are getting more complex
Import location, product classification, and fulfillment strategy now play a bigger role in total cost and delivery experience.
Compliance is becoming a competitive factor
Brands that can accurately manage duties, taxes, and fees correctly have a clear advantage over those that cannot.
With additional fees and enforcement measures still expected to roll out, this shift is ongoing rather than a one-time change.
The Global Shift in Ecommerce Import Rules
The EU is not acting in isolation. Governments around the world are rethinking how low-value ecommerce imports are handled.
The United Kingdom, for example, has announced plans to remove its £135 duty threshold by 2029 following a transition period.
These changes reflect a broader push to ensure consistent duty collection and create a more level playing field between domestic and international sellers.
Preparing for a New Era of Ecommerce Imports
Europe remains one of the most valuable ecommerce markets in the world. But accessing it is becoming more complex.
The removal of duty free treatment for low value goods marks the end of a simpler era for cross border selling into the EU.
What comes next is a more structured environment where cost control, compliance, and operational strategy play a much larger role in success.
With implementation already underway and more changes expected through 2026, brands have a limited window to prepare.
That preparation may include:
- Reassessing pricing and margin strategies to account for new duties and fees
- Improving landed cost visibility at checkout to reduce surprise charges
- Evaluating fulfillment and import approaches, including where goods are cleared
- Strengthening compliance processes around classification, documentation, and duty calculation
- Reviewing product assortment and bundling strategies to minimize unnecessary fees
As global trade conditions continue to evolve, brands that invest in the right infrastructure and strategies will be better positioned to manage costs, protect margins, and deliver a consistent customer experience.
Connect with the Passport team to see how you can reduce complexity, protect margins, and adapt to evolving global trade rules.
Authored by Traci Fisher
Director of Compliance Operations | Passport
Traci Fisher is a seasoned Customs Compliance leader with over 17 years of experience in International Logistics and Customs. Traci earned a BS degree in International Business from Arizona State University, and as a U.S. Licensed Customs Broker since 2016 and a Certified Customs Specialist (CCS) since 2021, she brings extensive expertise in navigating complex customs regulations. Traci is dedicated to ensuring compliance, optimizing international trade processes, and supporting business growth through strategic customs solutions.
Frequently Asked Questions
Did the EU end duty-free shipping for ecommerce orders?
Yes. As of July 1, 2026, the EU removed the €150 duty-free threshold for low-value ecommerce imports. This means goods imported into the EU are now subject to customs duties regardless of value, including shipments under €150.
What was the €150 duty-free threshold?
The €150 duty-free threshold allowed many low-value ecommerce shipments to enter the EU without customs duty, although VAT still applied. Its removal means low-value orders that were previously exempt from duty may now carry additional import costs.
What is the new €3 customs duty?
The EU introduced a temporary €3 flat customs duty for low-value ecommerce imports under €150. This duty applies per customs declaration line item based on product category, not necessarily per parcel or per individual unit.
Does VAT still apply to ecommerce imports into the EU?
Yes. VAT still applies to ecommerce imports into the EU. The removal of the duty-free threshold adds customs duties on top of existing VAT obligations, increasing the total landed cost for many shipments.
How do country-level fees affect ecommerce brands?
Some EU countries have introduced or announced separate fees on ecommerce imports. These fees may apply in addition to VAT and customs duties, creating a more layered cost structure for brands shipping low-value goods into Europe.
Are the new EU import fees charged per parcel or per item?
It depends on the fee. Some country-level fees may apply per parcel, while other charges, including certain EU-level fees, may apply per customs declaration line item. This makes product classification and cart composition more important for brands.
Why does HS classification matter more now?
HS classification determines how products are categorized for customs purposes. Because some new fees and duties are applied at the product category or declaration-line level, inaccurate or incomplete classification can lead to unexpected costs, delays, or compliance issues.
How will these changes affect ecommerce checkout?
Brands may need to show duties, taxes, and fees more clearly at checkout to avoid surprise charges at delivery. Accurate landed cost calculation is becoming more important for customer experience, conversion, and margin protection.
What should ecommerce brands do to prepare?
Brands should review pricing, landed cost calculations, product classifications, fulfillment strategy, and checkout transparency. They may also need to reassess where goods are cleared, how mixed-cart orders are handled, and whether current margins still make sense under the new fee structure.
Is Europe still a good market for ecommerce brands?
Yes. Europe remains one of the world’s largest and most valuable ecommerce markets, but selling into the region now requires more planning. Brands that can manage duties, taxes, compliance, and fulfillment efficiently will be better positioned to protect margins and deliver a strong customer experience.