The Old Rule: €150 Exemption
For many years, the EU granted a customs duty exemption on imported goods valued at €150 or less. This meant that when you bought something from Temu, Shein, or AliExpress for, say, €20, you paid no customs duty — only VAT (typically collected by the seller via the IOSS scheme introduced in 2021).
This exemption was designed for genuine low-value, low-volume trade. Over the 2020s, it became a loophole exploited by large e-commerce platforms shipping hundreds of millions of parcels to EU consumers at very low declared values.
The New Rule: €3 Flat Fee (from July 1, 2026)
Effective 1 July 2026, the EU abolished the €150 customs duty exemption and introduced a €3 customs duty for each tariff classification in e-commerce consignments valued at €150 or less from non-EU countries. Quantity does not multiply the duty.
This is established by Council Regulation (EU) 2026/382. The measure is described as temporary — it will run until 1 July 2028, when the new EU Customs Data Hub is expected to be fully operational and standard tariff classifications will apply.
How Is the Total Import Cost Calculated?
Estimated checkout cost if the declarant passes the duty through (orders ≤ €150):
Estimated Checkout Total = Declared Value + EU Customs Duty + Import VAT
where: EU Customs Duty = €3 × number of tariff classifications
Import VAT = (Declared Value + Customs Flat Fee) × destination country VAT rate
Example: €20 order to Germany (19% VAT)
| Component | Amount |
|---|---|
| Declared value | €20.00 |
| EU customs duty (1 tariff category × €3) | €3.00 |
| Import VAT (19% × €23.00) | €4.37 |
| Estimated checkout total | €27.37 |
| Before July 2026 (VAT only): €23.80 | +€3.57 extra |
Example: €50 order to France (20% VAT)
| Component | Amount |
|---|---|
| Declared value | €50.00 |
| EU customs duty (1 tariff category × €3) | €3.00 |
| Import VAT (20% × €53.00) | €10.60 |
| Estimated checkout total | €63.60 |
| Before July 2026 (VAT only): €60.00 | +€3.60 extra |
The November 2026 Update: Product Identifiers Required
The July 2026 change is not the only date to watch. From 1 November 2026, Product Identifiers (PIDs) become mandatory for all consignments under the new regime. PIDs are standardised product codes that allow customs authorities to verify the declared value and nature of goods more precisely.
The practical impact for consumers: non-compliant parcels may face delays or additional scrutiny from November 2026. Sellers and platforms will be required to include PIDs in customs declarations.
Full details: What Changes in November 2026 →
Does This Apply to All Parcels?
The €3 flat fee applies specifically to distance sales (e-commerce to consumers) from non-EU sellers on consignments valued at €150 or less. It does not apply to:
- Parcels valued over €150 (standard customs tariffs apply instead)
- Goods with preferential trade agreements declared in H1 customs procedures where VAT was not collected via IOSS
- Business-to-business (B2B) shipments
For orders over €150, different customs rules apply. Standard import duties based on the goods' tariff classification (HS code), plus VAT, are charged. Use our calculator for exact estimates →