There are only about four weeks left before the EU abolishes the de minimis (minimum duty-free allowance). From July 1, 2026, all B2C parcels under €150 entering the EU will no longer enjoy duty-free treatment and will instead be subject to a fixed duty of €3 per item.
Policy Highlights
- Scope of applicationAll commercial parcels entering the EU from a third country with a declared value of less than €150
- Tax and fee standardsA fixed customs duty of 3 euros per item (not calculated proportionally)
- IOSS SellerFor sellers who have registered with IOSS (Import One-Stop Service), taxes are withheld at the sales stage, making the customs clearance process relatively simple.
- Non-IOSS sellersCustoms clearance and tariff payments need to be completed in the destination country, making the process more complicated.
Impact on cross-border e-commerce
Rising landed costs€3 per item may seem like a small amount, but it has a significant impact on low-priced items (such as small items costing €5-10), increasing costs by €30%-60%.
Increased compliance complexityNon-IOSS sellers need to handle customs clearance in the destination country, which may require engaging a local customs clearance agent.
Changes in price competitivenessCompared to local EU sellers, cross-border sellers' price advantage will further narrow.
How to deal with it
- Assess whether to register for IOSSIf the EU market accounts for a large portion of the business, registering with IOSS can simplify the customs clearance process.
- Adjust pricing strategyIncorporate tariff costs into selling price calculation
- Pay attention to the differences in implementation among member statesThere may be slight differences in the specific implementation among the 27 EU member states.
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