1    Background

Based on the original objective of avoiding disproportionate administrative burdens for low-value consignments, a customs duty relief for shipments with an intrinsic value of up to EUR 150 has applied to date. However, in light of ongoing digitalisation and the increase in cross-border e-commerce, this relief has lost its justification. Instead, it has led to structural distortions of competition to the detriment of EU businesses. This is primarily due to the increasing use of the threshold by third-country traders who gain advantages through incorrect declarations in the import process. Against this background, a fundamental change in the system has been adopted.

2    Change

Regulation (EU) 2026/382 serves to abolish the previous customs duty relief and replace it with a temporary EUR 3 customs duty (KMLZ Customs Newsletter 14 | 2025). From 1 July 2026, goods (items) in consignments of up to EUR 150 from third countries will be subject to a charge of EUR 3 (flat-rate customs duty). This applies where the supply qualifies as a distance sale of goods from third countries pursuant to Art. 14(4) No. 2 of the EU VAT Directive (B2C transaction). The measure initially applies until 1 July 2028. The charge constitutes a customs debt and is due in addition to VAT. Imports may continue to be exempt from import VAT where the Import One Stop Shop (IOSS) is used (KMLZ VAT Newsletter 05 | 2026).
 

3    EU Commission guidelines

On 2 June 2026, the EU Commission published guidelines on this amendment. In particular, the following clarifications were provided:

• Scope: The flat-rate customs duty applies to all distance sales from third countries with a consignment value of up to EUR 150, irrespective as to how the goods are declared (H1, H6, H7 declaration) and the VAT scheme used (IOSS, standard VAT). However, exceptions apply, particularly for certain goods where the IOSS is not used.

• Consignment value: The decisive factor is the sales price of the goods, excluding transport and insurance costs unless these are included in the price and not separately indicated. Taxes and other charges must be added.

• Item: Goods within a consignment having the same tariff classification, description and origin. Aggregation of goods for the purpose of calculating the flat-rate duty is not permitted.

• Flat-rate duty: Customs duty is generally levied per item stated in the customs declaration.

• Competent customs authority: Where IOSS is used, importation may take place in any Member State. Without IOSS, importation must be declared to the customs authority of the Member State of destination.

• Responsible party: Responsibility for the declaration and payment of the flat-rate duty lies with the declarant. This is primarily the person making use of IOSS , their representative, or – exceptionally – the consumer.

• Anti-abuse rule: Customs authorities may verify whether successive supplies exist and may levy the flat-rate duty on the supply qualifying as a distance sale from a third country.

• Customs warehousing: Distance sales from third countries into a customs warehouse are subject to the flat-rate duty. Supplies within the warehouse are not.

• Returns: The flat-rate duty is not refunded in the event of returns.

• VAT: The VAT treatment of the supplies remains unchanged.

• Product identifiers: From 1 November 2026, the provision of product identifiers (PID) becomes mandatory (optional from 1 July 2026) in order to improve traceability and control.

4    Practical implications

The new rules introduce a fundamental change in the treatment of low-value imports. This particularly affects the e-commerce sector. In this context, the Commission’s guidelines are to be welcomed. The objective is to align the treatment of supplies of goods from third countries with those within the EU. Although the flat-rate duty generally applies to all distance sales from third countries, certain exceptions remain available and may be utilised by businesses. In particular, the flat-rate duty does not apply to specific goods where IOSS is not used.

For online traders and online marketplaces, the new regime requires comprehensive adjustments to existing processes. Businesses that previously benefited from the customs relief will need to take into account an additional customs burden. Especially in high-volume e-commerce business models, the flat-rate duty may become a significant cost factor. It is also included in the taxable amount for VAT purposes, thereby increasing the VAT payable. From an economic perspective, it is also particularly relevant that the flat-rate duty is levied irrespective of any subsequent return. As a general rule, no refund is granted, meaning that high return rates may lead to additional financial burdens. Businesses should therefore carefully assess whether adjustments to their logistics processes can be made in order to avoid the flat-rate customs duty altogether.

For online traders, online marketplaces and logistics service providers, the new regime also results in increased requirements regarding data quality, data structures and process documentation. Businesses should review their existing processes without delay and align them with the new legal and technical requirements. Additional adjustments will be necessary, in particular with regard to the new product identifier requirements.