The EU's €3 customs duty is coming. Here's exactly what it means for your business.
From 1 July 2026, a €3 customs duty will apply to every B2C parcel under €150 entering the EU. Here's a simple guide to what it means, what it costs, and what you need in place before the deadline.€3
flat-rate duty per item type (HS code) on B2C parcels valued under €150
Delivered Duty Paid (DDP)
With the new EU customs charges, DDP shipping is becoming essential for sellers sending to the EU.
The End of Duty-Free Low-Value Imports
For years, parcels under €150 entered the EU duty-free. From 1 July 2026, that exemption ends. Every B2C parcel you send to an EU customer valued under €150 will carry a €3 duty per item type.
Is this the €3 duty or standard duty?
The €3 flat rate applies to all B2C goods valued at less than €150 from non-EU sellers - whether IOSS-registered or not. Goods over €150 were already subject to standard customs duty rates and are not part of this change.
How This Looks
How much will a typical order cost?
The charge is per item type (HS commodity code) - not per parcel, and not per unit. Sending two of the same product counts as one charge. Sending two different product types means two charges.
Single product type | HS/Commodity Code | Duty Charge |
|---|---|---|
Cotton T-shirt (×3) | 6109.10 | €3 |
Total Duty (1 HS code, 1 parcel) | €3 |
Mixed product types | HS/Commodity Code | Duty Charge |
|---|---|---|
Silk blouse (x1) | 6206.10 | €3 |
Wool blouses (x2) | 6206.20 | €3 |
Cotton scarf (x1) / HS 6214.20 | 6214.20 | €3 |
Total Duty (3 HS codes, 1 parcel) | €9 |
IOSS and EU VAT
IOSS (Import One Stop Shop) is the EU's VAT scheme for non-EU sellers shipping goods under €150 to EU customers. If you're registered, EU VAT and the €3 duty are collected at checkout - your customer receives their order with nothing extra to pay.
Parcel2Go supports the customs documentation process regardless of your IOSS status. If you want to understand IOSS and whether you should register, our full guide covers everything you need to know.
Where does your business sit?
Map your current flow and identify the best action for your EU shipping needs.
What you need to do before you next ship to the EU
The change is live. Here's how to make sure your shipping and customer experience are not caught out.
Review your multi-SKU EU order profile
The €3 charge multiplies with each distinct item type in a parcel. Review your typical EU orders - how many carry two, three, or more different product types? That's your duty exposure.
Orders with a single product type are hit once. Mixed-product orders are where the cost stacks up fastest.
Switch to DDP for EU orders
Under DDU, your EU customers now face an unexpected charge before delivery. DDP settles everything at checkout - your customer receives their order with nothing to pay. Learn more about Delivered Duty Paid (DDP).
Update your landed costs and EU pricing
Factor in the new duty before your next EU price review. A three-SKU order now carries €9 in duty alone before any carrier or VAT costs. If you're passing this through to customers, your checkout total changes. If you're absorbing it, your margin changes. Either way, your numbers need updating now.
Why DDP is the Best Solution for EU eCommerce in 2026
Delivered Duty Paid (DDP) means you take care of all duties, taxes, and fees before the parcel is delivered, rather than passing these costs on to your customer.
This creates a better customer experience by removing unexpected charges at delivery, while also helping parcels move through customs more efficiently and reducing transit times.
Delivered Duty Unpaid (DDU) | Delivered Duty Paid (DDP) ✓ | |
|---|---|---|
Who pays import charges? | Your customer, on delivery | You, before the parcel is shipped |
Customer experience | Parcel held; unexpected bill to pay before release | Doorstep delivery with no extra charges |
Risk of refused delivery | Customers increasingly refuse unexpected charges | Low - standard delivery experience for your customer |
Customs clearance speed | Slower - manual collection required | Faster - pre-cleared at checkout |
Returns rate impact | Higher | Lower |
Recommended from July 2026 | No | Yes |
How Parcel2Go Supports Your EU Shipping
DDP services to major EU destinations
We partner with trusted carriers to offer Delivered Duty Paid (DDP) options across key EU destinations. All applicable duty and VAT is included in the price you pay - your customer receives their order with nothing to pay at the door.
SmartSend - built for eCommerce compliance
SmartSend is our platform for regular business senders. It integrates with your store and ensures your shipments include the correct customs data, commodity codes, and declarations required from July 2026 onwards.
Expert support
Not sure which approach is right for your business? Our team can advise on DDP service options, customs data requirements, and how to prepare your operations for the changes ahead.
Find the Right DDP Solution for Your EU Deliveries
Parcel2Go offers a range of shipping services with DDP options, giving you flexibility on speed, cost, and coverage to top destinations in the EU.
Get a tailored quote below to compare services and find the best option for your chosen destination.
France: additional fees to be aware of
Alongside the EU-wide €3 duty, some member states have introduced their own separate charges. If you ship regularly to France, these apply on top.
France - in force since 1 March 2026
France introduced its own small parcel tax (Taxe sur les petits colis) for B2C parcels under €150 from outside the EU. This is separate from the EU-wide €3 duty and is already live.
Detail | France small parcel tax |
|---|---|
Amount | €2 per HS code classification (per item type, not per parcel) |
Applies to | B2C parcels under €150 from outside the EU to France, Monaco, Guadeloupe, Martinique and Reunion |
Gifts | Gifts from one individual to another under €45 are exempt |
If you use IOSS | Collected alongside VAT through your IOSS account |
If you ship DDU | Collected from the recipient - who also charge their own separate handling fee on top |
Frequently Asked Questions
Does the €3 duty apply to all UK businesses shipping to the EU?
It applies to B2C shipments valued at €150 or less. Goods over €150 were already subject to standard customs duty.
If you're IOSS-registered, the duty is collected at checkout. If you're not IOSS-registered, your carrier will typically collect it from the recipient at delivery.
How is the duty calculated on an order with multiple product types?
The €3 duty is charged per item type based on HS commodity code, not per parcel or per unit.
Three different product types in one parcel = €9 duty. Two units of the same product = one €3 charge.
What is IOSS and do I need to register?
IOSS (Import One Stop Shop) is the EU's VAT scheme for non-EU sellers shipping goods under €150 to EU customers.
If you're registered, EU VAT and the €3 duty are collected at checkout so your customer receives their order with nothing to pay on delivery. Parcel2Go supports the customs documentation process regardless of your IOSS status. See our full guide.
What is DDP and how does it differ from DDU?
DDP (Delivered Duty Paid) means you cover all duties and taxes at checkout - your customer receives the parcel with nothing to pay.
DDU (Delivered Duty Unpaid) means the recipient pays duties and taxes on delivery. Post-July 2026, DDU creates a poor customer experience as recipients face unexpected charges. DDP is strongly recommended for EU shipments.
My products are made in the UK. Do I still pay the €3 duty?
Goods of UK origin that meet the Rules of Origin under the UK-EU Trade and Cooperation Agreement (TCA) may qualify for 0% customs duty - independent of the new €3 flat rate.
You'll need to include a supplier's declaration or EUR.1 certificate with your shipment. Check the UK Trade Tariff on GOV.UK or speak to our team to confirm whether your products qualify.