Guide
The EU €3 customs duty on small parcels, explained
Since 1 July 2026, goods sold online to EU consumers from outside the EU no longer enter duty-free when the parcel is worth €150 or less. A flat €3 customs duty per item applies instead.
What changed
Before July 2026, low-value parcels paid import VAT but no customs duty. The EU removed that exemption (Council Regulation (EU) 2026/382) and, until a new EU customs data system is ready, charges a simple flat duty. The flat duty is scheduled to run until 1 July 2028, when normal duty rates by tariff code are due to apply. It may be extended if the system is late.
What counts as an "item"
An item is one or more goods in a parcel that share the same tariff classification, description and origin. In practice the €3 is applied per line on the customs declaration, however many units are on that line.
| Parcel contents | Duty |
|---|---|
| 5 identical T-shirts | €3 |
| 1 T-shirt + 1 mug | €6 |
| 1 print + 1 candle + 1 necklace | €9 |
| Anything worth more than €150 | Normal duty rates, not €3 |
How lines get grouped depends on the declaration type your carrier uses. Some group by six-digit HS code and some by eight-digit CN or ten-digit TARIC code, so two different products with the same six-digit code can end up as one line or two.
Does IOSS cover it?
No. IOSS is a VAT scheme. The €3 duty applies whether you use IOSS, the special arrangements, or standard import VAT. If you don't collect duty at checkout (DDP), your customer is asked to pay at delivery, usually with a carrier handling fee on top, and some parcels get refused.
Which shipments are in scope
- Business-to-consumer distance sales where you, the seller, ship the goods from outside the EU.
- Consignments with an intrinsic value of €150 or less. Shipping and insurance are excluded only if shown separately on the invoice.
- Goods previously excluded from the old exemption, such as perfume and alcohol, are covered too.
What to do now
- Give every product an HS code and country of origin. Shopify has a bulk CSV import for exactly this.
- Clean your SKUs and barcodes. From 1 November 2026 they are reported as product identifiers.
- Decide who pays. You can absorb the duty, add an EU handling line, raise EU prices, or collect duties at checkout.
- Ask your carrier or IOSS provider in writing how they group declaration lines and pass the duty on to you.
- Book the duty separately in your accounts, not inside shipping costs.
Sources: Access2Markets, European Commission.
General information, not legal or customs advice. Six-digit HS codes are the same worldwide; the EU adds digits (CN 8-digit, TARIC 10-digit). Confirm in the EU TARIC database or with your carrier for unusual products. Last reviewed October 2026.