5 ways businesses can prepare for the EU customs duty changes

New EU customs duty rules are on the horizon for consumers and businesses buying smaller items from outside the EU, including components and parts, particularly where they are being purchased via e-commerce channels. While the monetary value may seem small, the abolishment of the customs duty exemption for goods valued at up to €150 represents a significant change for businesses importing into the EU and for e-commerce multinationals, who will need to consider the impact of a potential €3 customs charge per parcel (or per item, in some cases).

The changes target small parcels entering the EU and form part of wider efforts to modernise the EU customs framework, create a level playing field for European businesses, and reduce the environmental impact of mass e-commerce goods.

What EU customs duty rules apply today?

Currently, goods valued at less than €150 can be imported into the EU without customs duties. However, the increasing volume of low-value e-commerce shipments has prompted policymakers to reconsider this exemption, citing concerns about unfair competition for EU businesses, an influx of low-cost goods, and the growing pressure on customs authorities.

What’s due to change?

The Council of the European Union has agreed to the introduction of a temporary flat rate customs duty of €3 on small parcels valued at less than €150 entering the EU from 1 July 2026.

Businesses shipping large volumes of small parcels into EU markets face cumulative cost increases and additional compliance considerations they may not have anticipated in their financial planning.

It’s important to note that a €3 duty charge is due to be applied to goods within a parcel and that the charge being applied is per tariff classification, rather than the parcel itself. In practice, parcels containing goods that fall under multiple tariff classifications could incur more than one charge, making it particularly difficult to both apply and account for.

The €3 duty will operate as an interim measure until July 2028, when broader reforms to the EU customs system, including the introduction of a new EU customs data hub, are expected to take effect.

The introduction of this temporary customs duty will also directly impact the UK, as a non-EU country for trade, imposing a duty on goods under €150 in value.

Why are these changes being introduced?

The reforms are in response to the rapid growth in e-commerce imports into the EU, particularly from non-EU, low-cost production areas.

Large volumes of low-value goods are now shipped directly to consumers, often through online marketplaces. The EU believes the current duty exemption has:

• Created competitive imbalances for EU businesses, particularly small enterprises.
• Increased risks of undervaluation and non-compliance.
• Placed additional pressure on customs authorities managing high volumes of small shipments.

The new rules are intended to strengthen the EU customs system while ensuring fairer competition within the single market.

What this could mean for businesses

For businesses importing goods into the EU, particularly those operating e-commerce or direct-to-consumer models, the changes will result in:

• Higher import costs for low-value shipments – in some cases, €3 per item rather than parcel, depending on classification.
• Increased importance of accurate tariff classification – something that will need to be managed by the business carefully.
• Potential adjustments to supply chain and fulfilment models.

The impact could become more significant for businesses shipping high volumes of parcels into EU markets.

In our view, businesses that rely on cross-border e-commerce shipments should review their processes and prepare well in advance of the rule change.

5 ways businesses can prepare for EU customs duty changes

Although the changes will not apply until July 2026, businesses may benefit from reviewing their current processes now. Some practical steps to consider include:

1. Review supply chains and fulfilment models

Businesses that ship large volumes of low-value parcels directly to EU customers may wish to consider whether alternative distribution models, such as bulk importing and EU-based fulfilment, could reduce costs.

2. Check tariff classifications

As the new duty will apply based on tariff classifications, ensuring products are correctly classified will be important to avoid incorrect duty charges.

3. Review pricing and margins

Businesses should consider how the new duty may affect product pricing and profit margins, particularly for products sold at lower price points.

4. Make financial provisions

Companies that rely heavily on low-value imports may wish to factor the potential additional customs costs into financial forecasts and budgets ahead of the rule change.

5. Monitor future customs reforms

The flat-rate duty is expected to be a temporary measure until broader EU customs reforms are implemented, so businesses should continue monitoring developments in the coming years.

How can AAB help?

Changes to customs rules and international trade regulations create new compliance obligations and cost implications for businesses.

With the July 2026 implementation date approaching, businesses trading with EU markets may wish to review their supply chains, pricing structures and customs processes.

Our Customs Duty Services include:

• Assistance with implementing customs reliefs/regimes.
• Advice on tariff classification and the rules of origin.
• Business process and controls reviews – a customs compliance health check that ensures your supply chain processes operate efficiently and that you access all potential saving opportunities.

If you would like to discuss how the new EU customs duty rules may affect your business, or need support reviewing your import structures or tariff classifications, please reach out to John Conway or speak with your usual AAB contact.