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Please confirm any final tax or customs decisions with a specialist or the relevant customs authority.
De minimis, the rule that exempts imports below a certain value from duties and taxes, has supported the growth of cross-border e-commerce for many years. For businesses shipping from Japan, duty-free treatment of low-value parcels at destination meant no extra charges for recipients and a smooth customer experience.
That is now changing.
The EU will require particular attention for cross-border e-commerce exports from Japan.
From July 2026, low-value shipments that previously arrived duty-free have become dutiable. From November 2026, new documentation requirements and fees will take effect, along with a change in how shipments are cleared.
Continuing to ship without understanding these changes can lead to unexpected charges for recipients, more returns and refused deliveries, and lower margins for your business.
This article explains the latest regulatory developments that EU-bound cross-border e-commerce exporters need to know, and how to respond in practice.
A de minimis threshold is a specific valuation limit below which a shipment is considered of insufficient value for customs authorities to levy duties or taxes. Essentially, it provides for duty-free and tax-free entry for low-value goods.
There are two main valuation methods:
Calculation Method | What is Included? | Impact on Tax |
|---|---|---|
CIF (Cost, Insurance, Freight) | Goods value, plus shipping andinsurance costs | Reaching the limit is easier, meaning more shipments get taxed |
FOB (Free on Board) | Goods value only | Shipping costs are excluded, often allowing higher‑value goods to enter duty‑free |
The same product may be taxed in one market and exempt in another, depending on which method the destination uses. Always check before setting your prices.
The EU is currently the most important change to watch for cross-border e-commerce exports from Japan.
The EU will abolish the €150 duty exemption threshold (de minimis) for imported goods. Previously, shipments valued under €150 were exempt from customs duties. From July 2026, all shipments will be subject to import duties (a flat €3 duty per declaration line will apply). This applies regardless of IOSS (Import One-Stop Shop) registration. This simplified duty measure is expected to cover approximately 93% of e-commerce imports into the EU and will be applied in a transitional phase from July 2026 – July 2028. From 2028 onward, the EU plans to shift to standard duty rates based on HS codes.
These changes strengthen documentation requirements as well as taxation. From 1 November 2026, B2C shipments to the EU with an intrinsic value (excluding shipping and insurance) of €150 or less must include the following three types of Product Identifiers (PID) for each item (declaration line).
PIDs are an EU requirement, not a requirement by DHL.
The shipper is responsible for deciding which codes to provide as PIDs and for ensuring they are accurate. DHL cannot create, assign or substitute PIDs.
Please note that second-hand, vintage and refurbished goods are in scope. Where possible, provide the PIDs of the original product. Personalized, customized and print-on-demand items are not automatically exempt either.
The European Commission has indicated that it will take a flexible approach to PIDs during the initial period. However, PIDs are a legal requirement. If PIDs are not provided, import clearance cannot be completed, which may cause delivery delays or a return to origin (RTO).
The EU plans to review this transitional approach in Q1 2027. To prepare for shipments from 1 November, register identification codes in your product master data and get ready to include them in your shipment data.
In MyDHL+, when you create a waybill for a dutiable B2C shipment from outside the EU to the EU, three fields appear on the invoice line item screen:
These fields only appear when "Business Contact" is ticked for the shipper (From) and not ticked for the receiver (To).
Other shipping tools, including MyDHL API, DHL EDI and DHL Express Commerce, also support PID entry. For setup details, please contact your DHL sales representative or IT support team.
B2C shipments arriving in the EU on or after 1 November 2026 will be charged a Union Handling Fee by EU Customs of €2 per import declaration line, regardless of the value of the goods. This fee is set by EU law and is not a DHL fee. It is non-refundable.
The handling fee does not affect the calculation of customs duty, but it is included in the taxable base for import VAT. As a result, the VAT amount increases in line with the fee.
Item (example with one declaration line) | Amount | VAT Treatment |
|---|---|---|
Intrinsic value of goods | €100.00 | Included in taxable base |
Transitional duty | €3.00 | Included in taxable base |
Union Handling Fee | €2.00 | Included in taxable base |
Taxable base for import VAT | €105.00 | Basis for VAT calculation |
Import VAT (at a 20% rate) | €21.00 | – |
Total charges at import | €26.00 | €3 + €2 + €21 |
For IOSS shipments, no import VAT is charged on the handling fee at the border. However, if you charge the fee to the customer at checkout, it must be included in the VAT you declare on your IOSS return.
From 1 November 2026, consolidated (bulk) customs clearance, where multiple shipments are cleared together, will be discontinued for B2C shipments to the EU. Every shipment must be cleared individually.
If you have been using consolidated clearance to ship to the EU, your shipping methods and customs data preparation may be affected. Please speak to your DHL sales representative as early as possible.
The conditions for these exceptions are complex. We strongly recommend consulting a tax or customs specialist about your specific type of business.
When de minimis is abolished, a cost structure based only on "product price + shipping" no longer holds. If duties, taxes or fees arise at destination and you keep shipping without deciding who pays them, you face the following risks:
DHL supports both shipper-paid and recipient-paid options for duties incurred in the destination country, so e-commerce businesses can choose whichever suits their operations.
DDP Solutions: Our Delivered Duty Paid (DDP) service provides a seamless experience by allowing you to pay any applicable taxes on behalf of your customer.
Incoterm | What it means | Key features & benefits |
|---|---|---|
DDP | Seller pays duties and taxes | DHL handles customs charges first and bills the shipper later. |
DDU *new incoterm represented as DAP (Delivered At Place) | Customer pays duties and taxes | DHL collects fees from recipient before delivery can be completed. |
Which method is best suited for your business depends on the products you sell, your market, and your price range. Please note that some logistics companies may only support DDP, so please be mindful of this when selecting a service.
DHL supports both arrangements, depending on shipper eligibility, destination country and shipping conditions, so please speak with our experts for more information.
With these regulatory changes, accurate customs documentation matters more than ever. Customs authorities have put systems in place to detect discrepancies in declarations, and deliberate undervaluation is a serious compliance violation.
If a declaration is found to be problematic, shipments may be seized and additional penalties imposed. Repeated declaration errors may also lead to stricter customs scrutiny.
To avoid clearance delays, provide the accurate value and HS code of your goods, along with the recipient’s correct name, email address and mobile number, as electronic data through DHL’s shipping tools. You are responsible for verifying the final accuracy of your declarations. If anything is unclear, consult a tax or customs professional..
As regulations keep changing, your choice of logistics partner directly affects the stability of your business. DHL offers the following support for e-commerce businesses exporting to the EU:
To prepare for mandatory PIDs, the handling fee and the end of consolidated clearance from November 2026, start by talking to a DHL specialist.
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It took effect on July 1, 2026. The duty exemption for imports of €150 or less was abolished, and cross-border e-commerce shipments are now charged €3 in duty per declaration line. From November 1, 2026, PIDs will become mandatory for B2C shipments to the EU, EU customs will introduce a handling fee, and consolidated clearance will end. VAT has applied to shipments of €150 or less since July 2021.
It is a fee set by EU law and charged on B2C shipments arriving in the EU on or after November 1, 2026, regardless of goods value. The fee is €2 per import declaration line and is non-refundable. Documents and B2B shipments are exempt. It applies on top of the €3 duty for shipments of €150 or less, and on top of standard duties for shipments above €150, and it is included in the taxable base for import VAT. It is billed to the party paying duties and taxes (the shipper under DDP, the recipient under DDU) and is not a DHL fee.
PIDs are required for B2C shipments to the EU with a goods value of €150 or less. Documents, B2B shipments and shipments with a goods value above €150 (generally) are exempt. The Merchant PID and the Non-Standardised Manufacturer PID are mandatory; the Standardised Manufacturer PID (such as a GTIN or EAN) is provided only if one exists.
The European Commission has indicated that it will take a flexible approach during the initial phase. However, PIDs are a legal requirement. If PIDs are not provided, import clearance may not be completed, which could lead to delivery delays or return to origin (RTO). The EU plans to review these transitional arrangements in Q1 2027. Please prepare your PIDs ahead of shipments from November 1.
From November 1, 2026, B2C shipments to the EU can no longer be cleared together, and every shipment will be cleared individually. If you use consolidated clearance, please contact your DHL sales representative.
You can identify the correct HS code for each item using the search function in DHL’s MyGTS. Assigning the correct code is essential for determining the applicable duty rate and checking exemption eligibility. If anything is unclear, also consult a customs professional.
DHL supports both DDP (Delivered Duty Paid) and DDU (Delivered Duty Unpaid), so you can choose the option that fits your business model. With either option, DHL supports import clearance and the processing of duties and taxes. If you choose DDP, DHL pays duties and taxes on your behalf and bills you, the shipper, afterwards. Under DDU, the recipient pays duties and taxes, so it’s important to let them know in advance.
The handling fee introduced in November 2026 is likewise billed to the party paying duties and taxes. Availability depends on the destination country and shipping conditions, so please contact us for details.
Beyond the EU and the US, reviews of de minimis rules are under discussion in Asian countries, including Japan. You can follow regulatory developments through DHL’s MyGTS and the websites of national customs authorities. With DHL helping you stay on top of regulatory information, you can focus on sales and growing your business.
For full details of the EU rules, see the European Commission’s EU Customs Reform page.
Disclaimer
The rules, rates and schedules described in this article are based on information available as of October 20, 2026. Some details, including how PID requirements are applied, may change. For the latest information, please check with the relevant customs authorities or a tax or customs professional. DHL does not provide tax or legal advice.
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