Yes. The duty-free threshold has been removed since 1 July 2026, meaning shipments of any value may be subject to customs duties.
As cross-border eCommerce continues to grow rapidly, the European Union (EU) is moving forward with its customs reforms under the EU Customs Reform (EUCR). One of the most significant changes has now taken effect: as of 1 July 2026, the duty-free threshold for shipments valued at €150 or below has been removed. This marks a major shift in the operating model of cross-border eCommerce and export logistics.
Whether you run an online store, manage a global brand, or handle B2B exports, understanding the latest EU customs regulations, clearance processes, and logistics strategies is essential to remaining compliant, controlling costs, and staying competitive in the evolving European market.
What is the “De Minimis” (low-value duty-free threshold)?
Previously, shipments imported into the EU with a value not exceeding €150 could benefit from duty-free treatment. Under the new system:
All shipments (regardless of value) may now be subject to customs duties and Value Added Tax (VAT), depending on factors such as:
- Shipment type (B2B or B2C)
- Product classification (Harmonized System, HS Code)
- Country of origin
- Customs clearance process
For low-value B2C shipments, the EU introduced a new flat-rate duty model, changing how duties are calculated and applied.
Comparison of old vs new EU Duty System
| Previous System (Before 1 July 2026) | New System (Since 1 July 2026) | |
| Shipment ≤ €150 | ✅ Duty-free | ❌ No longer duty-free |
| Low-value B2C shipments | Duty-free (VAT may apply) | €3 duty per item |
| B2B shipments | Standard duty rates | Standard duty rates |
| Duty calculation | Based on shipment value | Based on shipment type and HS Code |
📌 All shipments to the EU may now be subject to both customs duties and Value Added Tax (VAT).
How is B2C duty calculated?
| Shipment Content | Duty | |
| Example 1 | 1 item (1 HS Code) | €3 |
| Example 2 | 3 different items (3 HS Codes) | €9 |
New Product Identifier (PID) requirements
With the advancement of the EU Customs Reform (EUCR), another key regulatory change will take effect on 1 November 2026:
All B2C shipments imported into the European Union (EU27) must include a Product Identifier (PID).
This is a mandatory requirement imposed by the EU (not DHL-specific), and all express carriers must comply in order to complete import customs clearance.
What is a Product Identifier (PID)?
A Product Identifier (PID) is a unique alphanumeric code used to clearly identify a specific product, enabling it to be accurately tracked and recognised throughout the entire supply chain.
There are two main types of Product Identifiers:
- Merchant Product Identifier - Assigned by the online seller, marketplace, or brand owner
- Manufacturer Product Identifier - Provided by the manufacturer or supplier
- Standardised (e.g. internationally recognised codes)
- Non-standardised (custom or proprietary formats)
Starting from November 2026, all B2C shipments must provide the following Product Identifiers (PIDs) at line-item level:
- Merchant PID (mandatory)
- Non-standardised Manufacturer PID (mandatory)
- Standardised Manufacturer PID (mandatory if available)
What does this mean for your business or webshop?
Under the EU Customs Reform (EUCR), businesses are facing a comprehensive shift in their cost structures, customer experience, and customs compliance requirements.
Firstly, with the removal of the €150 duty-free threshold, business models that previously relied on low-value, duty-free shipments are no longer sustainable. Shipping costs are expected to increase, and recipients may also face additional duties and taxes, further reducing profit margins.
Secondly, if duties and taxes are charged to the recipient, this may lead to higher refusal rates, negatively impact brand perception, and increase return and operational costs. To address this, DHL recommends using the Duty Tax Paid (DTP) service, whereby the shipper prepays all applicable charges, ensuring a smooth and consistent delivery experience for customers.
Finally, customs requirements have become significantly more stringent. All shipments to the EU must be supported by accurate and detailed documentation, including precise product descriptions, itemized values, country of origin, and HS Codes. In addition, Product Identifier information will become mandatory from 1 November 2026. Incomplete or inaccurate information may result in customs delays or even shipment holds.
Four key actions for your business
To ensure smooth entry into the EU market under the new regulations, businesses should adopt a proactive and forward-looking approach.
Inform your EU customers about potential customs duties and Value Added Tax (VAT) to reduce uncertainty at delivery. At the same time, leverage DHL’s electronic shipping and customs declaration solutions to submit complete and accurate shipment data, including item descriptions, value breakdown, country of origin and Product Identifier, to ensure efficient clearance.
You should also review your IOSS and overall customs strategies, ensuring all required documentation, such as a valid Power of Attorney (POA), is in place, and select the most appropriate clearance model based on your shipping practices.
Finally, adopt the DTP (Duty Tax Paid) service to manage duties and taxes upfront. This not only avoids charging the receiver upon delivery but also helps improve delivery success rates and overall customer satisfaction.
DHL: your trusted partner for EU shipping
As the EU Customs Reform has brought some significant changes, choosing a logistics partner with strong customs expertise is more important than ever. DHL Express offers:
- Extensive experience in EU customs clearance
Dedicated customs advisory support
End-to-end electronic declaration solutions
Duty Tax Paid (DTP) services
A global network with fast and reliable delivery
Whether you are an eCommerce seller, brand owner, or business exporter, DHL helps you stay competitive, reduce logistics and duty risks, and unlock new opportunities.
A flat duty of €3 per item (based on HS Code) will apply to low-value B2C shipments (≤ €150).
The Import One-Stop Shop (IOSS) is a VAT (Value Added Tax) simplification scheme introduced by the EU for cross-border eCommerce, primarily for B2C shipments valued at €150 or below. Through IOSS, sellers can collect VAT at the point of sale and report it via a single platform, helping to speed up customs clearance and improve the delivery experience.
However, it is important to note that:
- IOSS applies only to VAT, not customs duties
- Under the EUCR starting in 2026, the €3 duty per item still applies, even when using IOSS.
To ensure smooth customs clearance, make sure to provide complete and accurate shipment information, including:
- Clear and detailed product descriptions
- Correct HS Codes
- Country of origin
- Declared value
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