The EU has abolished the tariff exemption for parcels under €150
Effective July 1, 2026, the EU has officially abolished the duty-free policy for low-value goods, a policy in place since 1968. Previously, parcels valued at €150 or less could enter the EU duty-free; now, each item shipped directly to EU consumers will be subject to a flat €3 tariff.
This is the most significant reform of EU customs rules since 1968. Implemented under EU Council Regulation 2026/382, the measure aims to address the surge in low-value e-commerce parcels entering the EU market, while ensuring a level playing field for EU businesses and strengthening consumer safety standards.
How the new rules will work:
Two-year transition period: July 1, 2026 to July 1, 2028.
Taxed per item, not per parcel: The €3 tariff is levied per item (classified according to the HS 6-digit tariff code), not per parcel. A parcel containing multiple different product categories may incur customs duties exceeding €3.
Applicable to IOSS declarations: Even goods cleared through the Import One-Stop Service (IOSS) system are subject to the €3 customs duty. IOSS only covers VAT, never customs duties.
Applicable to B2C direct mail parcels: The new regulations apply to B2C parcels shipped directly from non-EU countries to EU consumers with a value not exceeding €150.
B2B goods are unaffected: Low-value B2B goods are subject to different handling rules.
What does this mean for sellers?
The "small parcel direct mail, low price, tax-free" model is no longer viable. Sellers who relied on low-profit, high-volume, direct-to-consumer models are now facing structurally rising costs. For a €40 product, €3 represents 7.5% of the selling price—enough to completely erode meager profits.
Accurate declarations are crucial. Each item has a unique HS 6-digit code, meaning accurate classification is now paramount. Inaccurate declarations can lead to customs delays, additional duties, and even fines.
This is not just a problem for Chinese sellers. The new regulations apply equally to all non-EU countries. Shein, Temu, AliExpress, and Amazon third-party sellers are all equally affected.
How freight forwarders can help
A reliable freight forwarder does more than just transport goods. In such policy changes, freight forwarders become strategic partners, translating customs rules into actionable logistical solutions.
1. Ensure compliance declarations. Freight forwarders ensure every shipment has accurate HS codes, correct product descriptions, and complete documentation, reducing the risk of customs delays, detentions, or penalties. With increasingly stringent customs inspections, a freight forwarder familiar with the new regulations is your first line of defense.
2. Provide cost transparency. The freight forwarder will provide a complete quote, guaranteeing no hidden fees, or will explain in advance any additional charges such as customs duties that the customer needs to pay. Sellers or importers will know the exact cost before the goods leave China, preventing unexpected costs upon arrival.
3. Flexible route planning. For products where the €3 tariff is difficult to absorb, freight forwarders would suggest alternatives: switching from air express to LCL sea freight, consolidating goods from multiple suppliers for FCL shipments, or pre-stocking inventory in EU overseas warehouses to avoid tariffs levied per parcel.
4. Assist with documentation and declaration. Freight forwarders ensure compliance with new EU requirements, including IOSS registration and electronic customs declaration, relieving sellers of administrative burdens. If needed, they can also assist with VAT registration and declaration.
5. Risk management. From cargo insurance to contingency plans for customs detention, freight forwarders manage operational risks that sellers cannot see or are unwilling to worry about.
Consult for a shipping solution: sales16@senghorlogistics.com
What's next?
If you are shipping low-value parcels to the EU, the cost structure has changed. First, re-evaluate your product pricing and logistics strategy. The most successful sellers don't passively bear costs—they proactively adapt. This may mean adjusting prices, switching to consolidated sea freight, using EU warehousing, or all three simultaneously.
The EU has made it clear that this is only a transitional phase. From July 1, 2028, the EU Customs Data Center will go online, and a permanent tariff system is expected to be implemented subsequently. But don't wait until then—the freight forwarder who helps you adapt to changes today is the partner who will keep you competitive tomorrow.
Have goods destined for Europe? We can help.
Whether you want to understand current industry freight rates, stay up-to-date with the latest customs compliance requirements, or find a reliable logistics partner to handle your EU shipments—we can help you.
Feel free to contact us anytime for a quick quote or a customized shipping solution.
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Post time: Sep-09-2026
