THE EUROPEAN UNION CANCELED EXEMPTION FROM CUSTOMS DUTIES FOR IMPORTED GOODS

From July 1, 2026, the European Union canceled the long-standing exemption from customs duties for imported goods, the cost of which does not exceed 150 euros. Instead, a temporary fixed duty of €3 was introduced for qualified low-value imports. This measure will apply until 1 July 2028, after which it is expected to be replaced by a broader customs system as part of the EU Customs Reform Package and the future EU Customs Data Centre.
This change is part of the European Commission’s broader efforts to modernise the customs system for e-commerce, strengthen customs controls and address the rapid growth of low-value imports entering the European Union.
What has changed?
Until 30 June 2026, imported goods with an intrinsic value not exceeding €150 were generally exempt from customs duties (although VAT on imports could still be applied).
This exemption from customs duties was abolished as of 1 July 2026. Qualified imports are instead subject to a temporary fixed duty of €3.
When does the €3 duty apply?
The temporary measure applies mainly to imports of low-value goods imported into the European Union from third countries in the context of business-to-consumer (B2C) e-commerce, including:
• distance sales (e-commerce), i.e. goods purchased remotely (for example through online platforms or other online shops) and dispatched directly from a third country to a buyer in the European Union;
• consignments of goods with an internal value not exceeding €150, as determined in accordance with the Union Customs Code; and
• imports, whether or not VAT is collected through the Import Single Window System (IOSS), special arrangements or standard import VAT procedures. The use of the IOSS or other VAT simplifications does not affect the application of the new duty.
The flat-rate duty is intended as a transitional measure until the implementation of a broader reform package of the EU customs system.
When does the €3 duty not apply?
The temporary fixed rate of duty shall not apply if the goods qualify for preferential tariff treatment under a Free Trade Agreement, a Customs Union or another preferential agreement. In such cases, the applicable preferential customs duty shall continue to apply. Similarly, if the goods are subject to other customs duty provisions outside the temporary fixed rate mechanism, these provisions shall remain in force.
Therefore, businesses should assess whether preferential origin or other tariff arrangements may affect the customs treatment of individual consignments.
How is the €3 duty calculated?
The European Commission has clarified that the €3 duty is applied to each line of the goods in the customs declaration, with goods with the same tariff classification usually being declared on a single line. ThereforeEconomic operators must ensure that customs declarations accurately reflect the tariff classification of the goods being imported.
For example:
• A parcel containing five identical T-shirts classified under the same commodity code will be subject to a single duty of €3.
• A parcel containing a T-shirt, headphones and cosmetics, each classified under different commodity codes, will be subject to a single duty of €9 (three lines of the declaration × €3).
Therefore, accurate tariff classification is becoming increasingly important for importers and customs representatives.
Who is liable for payment?
The duty is payable in accordance with the applicable customs legislation. In practice, the declarant, including the customs representative acting on behalf of the importer, may be responsible for the customs declaration, while commercial arrangements between importers, trading platforms, logistics service providers and customers will determine who ultimately bears the economic costs.
Why did the EU introduce this measure?
According to the European Commission, the temporary €3 duty is part of a wider EU customs reform package aimed at modernising the customs system for e-commerce, strengthening customs controls and tackling the rapid growth in the number of low-value consignments entering the European Union. As an interim measure until the full implementation of the new customs system, including the future EU Customs Data Centre, it aims to remove duty exemptions for low-value imports that have contributed to distortions in the e-commerce market, reduce incentives for undervaluation and customs fraud, create a more level playing field between EU businesses and non-EU sellers, and strengthen consumer protection.
What does this mean for freight forwarders?
Although this measure is primarily aimed at low-value e-commerce imports, it will have practical implications for freight forwarders, customs agents and logistics companies involved in customs clearance, tariff classification and invoicing to customers. Freight forwarders, customs brokers and customs agents involved in cross-border e-commerce should therefore review the operational implications of the new measure.
In particular, freight forwarders should:
• review customs representation arrangements and ensure that customers understand the new fee structure;
• ensure accurate tariff classification as duties are calculated per line of the customs declaration;
• review customs declaration processes and IT systems supporting low-value cargo;
• review existing comprehensive guarantees and deferred payment arrangements. Businesses that handle significant volumes of low-value e-commerce imports should assess whether the additional customs duties could affect the reference amount used for their customs guarantees;
• review contractual agreements with importers, online marketplaces and other supply chain partners; and
• update customer communications and contractual agreements to reflect the additional duty and its application.
Businesses that use comprehensive guarantees should also review whether the provisional duty affects the reference amount underlying their guarantee. The European Commission has clarified that for Authorised Economic Operators (AEOs) holding the relevant authorisation for a comprehensive guarantee, the existing reduction of the reference amount to 30% under the Union Customs Code may also apply to customs debts arising from qualifying distance sales, provided that the relevant conditions are met, including the maintenance of financial solvency.
The new regime is also likely to increase the number of inquiries from customers regarding customs duties and the calculation of import values.
Looking ahead
The temporary duty of €3 is set to remain in place until 1 July 2028, unless replaced earlier by the introduction of the new customs system. The European Commission has indicated that it will continue to monitor the implementation and practical impact of the temporary measure as the wider EU Customs Reform Package is implemented.
As part of these wider reforms, businesses should also prepare for the implementation of Product Identifiers (PIDs), which will become mandatory from 1 November 2026 for qualified low-value e-commerce imports. This requirement aims to improve the traceability of imported products and help customs authorities detect unsafe, counterfeit and non-compliant goods. Freight forwarders should review their IT systems and customs declaration processes to ensure that they are able to capture PIDs by the mandatory implementation date.
UKRZOVNISHTRANS Association encourages freight forwarders and customs representatives to familiarize themselves with the new requirements and assess any operational, commercial and relevant implications for their business. Members should also monitor further implementation guidance issued by the European Commission and national customs authorities, given that practicalarrangements may differ between Member States during the transitional period.
Additional information
For more information, the European Commission has published the following resources:
• Guidance on the temporary Euro 3 duty for low-value imports
• Questions and answers on the temporary Euro 3 duty