For years, the De Minimis exemption played a quiet but powerful role in the European e-commerce boom. It allowed parcels valued under €150 to enter the European Union without customs duties. That chapter is now closing.
From 1 July 2026, the EU will remove this threshold entirely.
This marks a fundamental change in the unit economics of selling into Europe. Whether you are a US or Canadian direct-to-consumer brand, a UK-based seller, a dropshipper operating from Asia, or any non-EU business shipping into the EU, the new rules will directly affect your costs, delivery speed, and customer retention.
With the deadline approaching quickly, this article breaks down what is really changing. We look at the new “duty buckets” that few merchants are discussing and what you need to adjust in your fulfilment strategy to stay profitable.
Until now, goods imported into the EU with a value of up to €150 were exempt from customs duties. VAT still applied, but duties did not. This exemption fuelled the growth of low-cost, cross-border e-commerce.
That exemption is being removed.
From 1 July 2026, the EU plans to introduce a so-called statistical duty on low-value e-commerce imports. This is intended as a temporary solution until a broader customs reform is rolled out in 2028.
The duty is set at €3, but there is an important detail to understand.
Warning for merchants: If the final legal text confirms a per-item application, the long-standing strategy of bundling low-value items to increase average order value could seriously damage margins.
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New fees have been in place since January 2026 While the EU-wide removal of De Minimis takes effect in July 2026, several countries have already introduced national measures from 1 January 2026.
Status: If you are already shipping DDP (Delivered Duty Paid) into these markets, your margins may already be under pressure. |
The €3 duty is a transitional step. Once the EU Customs Data Hub becomes fully operational, currently expected in 2028, duties will apply from the first euro using a simplified tariff structure.
Instead of navigating thousands of HS codes, B2C goods are expected to fall into a small number of duty buckets:
Note: Rates are indicative and based on current proposals as of Q1 2026.
This approach simplifies classification and ensures that almost no goods will enter the EU duty-free in the future.
Beyond duties and VAT, merchants also need to factor in customs handling fees charged by carriers.
These fees are often:
In many cases, the handling fee has a bigger negative impact on conversion than the duty itself.
This is why transparent pricing and fulfilment within Europe are becoming increasingly important under the new De Minimis rules.
From mid-2026, low-value parcels will face additional duty costs, putting further pressure on margins.
The Import One-Stop Shop remains the most effective way to manage VAT on low-value B2C shipments into the EU.
Without IOSS:
That combination is a proven conversion killer.
Importing stock in bulk and shipping orders from within the EU can:
Marketplaces that once relied heavily on direct shipping from China are rapidly localising their operations.
China e-commerce experts such as Ed Sander from Tech Buzz China have pointed out that these duties will not stop agile players. Instead, they will simply adapt by becoming local sellers.
If the largest cross-border players in the world are moving stock into the EU to avoid these costs, it is a strong signal for everyone else. The era of shipping single orders from overseas at scale is coming to an end.
Model both best and worst cases:
Make sure your IOSS registration is valid and correctly implemented. Without it, customers will pay VAT, duties and handling fees on delivery.
Ask yourself:
For many brands, the answer is already clear.
The new regulations force a hard look at your unit economics. Relying on the old €150 De Minimis exemption is no longer a viable growth strategy.
You need to calculate the real impact of the €3 duty on your specific products. For most high-volume merchants, the data shows that moving inventory closer to the end customer is the most effective way to protect margins.
Run the numbers on your bestsellers now. You need clarity on whether your current setup remains profitable before the new rules come into force this July.