Regulatory Alert :EU Abolishes Customs Duty Relief for Low-Value Imports and Introduces Temporary €3 Customs Duty effective 1 July 2026
Introduction
From 1 July 2026, the European Union has abolished the longstanding customs duty relief for imported goods with an intrinsic value not exceeding EUR 150. In its place, a temporary flat-rate customs duty of EUR 3 has been introduced for qualifying low-value imports. The measure will apply until 1 July 2028, when it is expected to be replaced by the broader customs framework under the EU Customs Reform Package and the future EU Customs Data Hub.
The change forms part of the European Commission's wider efforts to modernise the customs framework for e-commerce, strengthen customs controls, and address the rapid growth in low-value imports entering the European Union.
What has changed?
Until 30 June 2026, imported goods with an intrinsic value not exceeding EUR 150 generally benefited from relief from customs duties (although import VAT could still apply).
From 1 July 2026, this customs duty relief has been removed. Instead, qualifying imports are subject to a temporary flat-rate customs duty of EUR 3.
When does the €3 customs duty apply?
The temporary measure primarily applies to business-to-consumer (B2C) e-commerce imports of low-value goods entering the European Union from third countries, including:
- Distance sales (e-commerce), meaning goods purchased remotely (for example, through online marketplaces or other online retailers) and shipped directly from a third country to a purchaser in the European Union;
- Consignments with an intrinsic value not exceeding EUR 150, determined in accordance with the Union Customs Code; and
- Imports regardless of whether VAT is collected through the Import One Stop Shop (IOSS), Special Arrangements or standard import VAT procedures. The use of IOSS or another VAT simplification does not affect the application of the new customs duty.
The flat-rate customs duty is intended as a transitional measure pending implementation of the wider EU Customs Reform Package.
When does the €3 customs duty not apply?
The temporary flat-rate customs duty does not apply where goods qualify for preferential tariff treatment under a Free Trade Agreement, a Customs Union or another preferential arrangement. In such cases, the applicable preferential customs duty continues to apply instead. Similarly, where goods are subject to other customs duty provisions outside the scope of the temporary flat-rate mechanism, those provisions remain applicable.
Businesses should therefore assess whether preferential origin or other tariff arrangements may affect the customs treatment of individual consignments.
How is the €3 customs duty calculated?
The European Commission has clarified that the €3 customs duty applies per item line in the customs declaration, with goods sharing the same tariff classification generally declared on a single line. Economic operators should therefore ensure that customs declarations accurately reflect the tariff classification of the goods being imported.
For example:
- A parcel containing five identical T-shirts classified under a single commodity code would incur one €3 customs duty.
- A parcel containing a T-shirt, headphones and cosmetics, each classified under different commodity codes, would incur €9 (three declaration lines × €3).
Accurate tariff classification therefore becomes increasingly important for importers and customs representatives.
Who is responsible for the payment?
The customs duty becomes payable in accordance with the applicable customs legislation. In practice, the declarant, including a customs representative acting on behalf of the importer, may be responsible for the customs declaration, while commercial arrangements between importers, marketplaces, logistics providers and customers will determine who ultimately bears the economic cost.
Why has the EU introduced this measure?
According to the European Commission, the temporary €3 customs duty forms part of the broader EU Customs Reform Package, which seeks to modernise the customs framework for e-commerce, strengthen customs controls and address the rapid growth in low-value consignments entering the European Union. As an interim measure pending the full implementation of the new customs framework, including the future EU Customs Data Hub, it is intended to remove the customs duty exemption for low-value imports that has contributed to distortions in the e-commerce market, reduce incentives for undervaluation and customs fraud, create a more level playing field between EU businesses and non-EU sellers, and strengthen consumer protection.
What does this mean for freight forwarders?
Although the measure is primarily directed at low-value e-commerce imports, it will have practical implications for freight forwarders, customs representatives and logistics providers involved in customs clearance, tariff classification and customer billing. Freight forwarders, customs brokers and customs representatives involved in cross-border e-commerce should therefore review the operational implications of the new measure.
In particular, freight forwarders should:
- Review customs representation arrangements and ensure customers understand the new charging structure;
- Ensure accurate tariff classification, as the customs duty is calculated per customs declaration line;
- Review customs declaration processes and IT systems supporting low-value consignments;
- Review existing comprehensive guarantees and deferred payment arrangements. Businesses handling significant volumes of low-value e-commerce imports should assess whether the additional customs duties may affect the reference amount used for their customs guarantees;
- Review contractual arrangements with importers, online marketplaces and other supply chain partners; and
- Update customer communications and contractual agreements to reflect the additional customs duty and its application.
Businesses using comprehensive guarantees should also review whether the temporary customs duty affects the reference amount underlying their guarantee. The European Commission has clarified that, for Authorised Economic Operators (AEOs) holding an appropriate comprehensive guarantee authorisation, the existing reduction of the reference amount to 30% under the Union Customs Code may also apply to customs debts arising from qualifying distance sales, subject to the applicable conditions, including continued financial solvency.
The new regime is also likely to increase enquiries from customers regarding customs charges and the calculation of import costs.
Looking ahead
The temporary €3 customs duty is scheduled to remain in force until 1 July 2028, unless it is replaced earlier by the implementation of the new customs framework. The European Commission has indicated that it will continue to monitor the implementation and practical effects of the temporary measure as the wider EU Customs Reform Package is implemented.
As part of these wider reforms, businesses should also prepare for the introduction of Product Identifiers (PIDs), which will become mandatory from 1 November 2026 for qualifying low-value e-commerce imports. The requirement is intended to improve the traceability of imported products and assist customs authorities in identifying unsafe, counterfeit and non-compliant goods. Freight forwarders should review their IT systems and customs declaration processes to ensure they are capable of capturing PIDs ahead of the mandatory implementation date.
FIATA encourages freight forwarders and customs representatives to familiarise themselves with the new requirements and assess any operational, commercial and compliance implications for their businesses. Members should also monitor further implementation guidance issued by the European Commission and national customs authorities, noting that practical arrangements may differ between Member States during the transitional period.
Further information
For further information, the EU Commission has published the following resources: