From 1 July 2026, the European Union (EU27) removed the de minimis rule, its duty-free treatment for low-value goods valued at €150 or less. A new flat customs duty now applies to e-commerce shipments entering the region.
For New Zealand businesses selling to EU consumers, this brings more than added duty costs for your customers. There are also changes to the customs process and extra information required from you when you arrange a commercial shipment.
To help you keep doing business smoothly with the EU, we have put together a complete guide covering what you need to know and do under these new rules:
EU27 countries: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.
Three changes take effect in 2026, across two waves. Two affect the cost of a shipment, and one affects the product details you provide when you book.
| New EU Customs Rule | Description | Effective Date |
| Removed De Minimis and Introduced €3 LVG Duty | The €150 customs duty-free threshold is removed. Low-value goods no longer enter the EU free of customs duty. A flat €3 customs duty applies per line item on the declaration for low-value (≤€150) B2C shipments. | July 1, 2026 |
| EU Handling Fee | A €2 Union handling fee applies per item on goods sold online to EU consumers, at any order value. It is charged on top of duty and VAT and cannot be refunded | November, 2026 |
| Product Identifiers (PID) | Product identifiers are required for each item on B2C orders valued at €150 or less. Missing identifiers can delay clearance or lead to a return to origin. | November, 2026 |
Before 1 July 2026, B2C shipments valued at €150 or less entered the EU free of customs duty. That exemption has now ended.
For a B2C shipment from New Zealand to an EU customer valued at €150 or less, these charges apply:
For B2C shipments above €150, the €3 duty does not apply. Normal duty rates apply instead, and the €2 handling fee still applies to each item.
Both charges are counted per item, not per parcel or per unit. An item is one or more goods that share the same tarrif code, description and origin.
Several units of the same product count as one item. A shipment of three different products is three items, which is €9 in duty plus €6 in handling fees. A shipment of one product is one item, which is €3 plus €2, however many units it contains.
Example 1 - Shipment with three declaration lines
| Declaration Line | Goods | Quantity | HS Code | Origin | Value | Chargable Custom Duty | EU Handling Fee |
| 1 | Batik blouse (cotton, woven) | 1 | 6206.30 | NZ | €40 | €3 | €2 |
| 2 | Cotton trousers (women's, woven) | 1 | 6204.62 | NZ | €35 | €3 | €2 |
| 3 | Batik scarf (cotton) | 1 | 6214.90 | NZ | €25 | €3 | €2 |
| Total | 3 | €100 | €9 | €6 |
Example 2 - Shipment with multiple items but one declaration line
| Declaration Line | Goods | Quantity | HS Code | Origin | Value | Chargable Custom Duty | EU Handling Fee |
| 1 | Batik blouse (cotton, woven) | 2 | 6206.30 | NZ | €40x2=€80 | €3 | €2 |
| Total | 2 | €80 | €3 | €2 |
Shipment: a batik blouse (€40), cotton trousers (€35), and a batik scarf (€25).
Type: commercial (B2C), shipped without IOSS
Origin: New Zealand
Destination: Germany
| Charge | Before 1 July 2026 | From 1 July 2026 | From 1 November 2026 |
| Goods Value | €40+€35+€25 = €100 | €40+€35+€25 = €100 | €40+€35+€25 = €100 |
| Custom Duty | - | €9 (€3 × 3 items) | €9 |
| EU Handling Fee | - | - | €6 (€2 × 3 items) |
| VAT (Germany, 19%) | €19 | €20.71 | €21.85 |
| Total | €119 | €129.71 | €136.85 |
Note: IOSS, the Import One-Stop Shop, is an EU VAT scheme for B2C orders of €150 or less. It lets non-EU sellers collect VAT at checkout and pay it to the EU through a single monthly return. Your customer then pays no VAT on delivery. This example assumes no IOSS, for clarity of new duty calculation demonstration. Transport costs, which also form part of the VAT base, are left out here for simplicity too. VAT rates range from 17% in Luxembourg to 27% in Hungary, and most countries charge between 19% and 23%.
The reform changes how your B2C shipments are cleared.
The change runs across the whole journey, from booking to declaration to clearance. As an e-commerce seller, you only need to focus on providing the right information. Your international courier handles the rest.
The core process of how you book a shipment and how it travels stays mostly the same.
What changes sits in four places:
Only the first needs action from you. The other three are changes to stay aware of, with no action needed from you as a shipper.
Shipping information required at booking remains the same. You provide an accurate description, value, quantity, HS code, and delivery details.
On top of the core shipment informations, which includes the description, value, quantity, HS code, and delivery details, two points need extra attention.
First, provide the HS code at the right level.
For IOSS shipments (if you are an IOSS holder or you sell through a marketplace that uses its own IOSS), a 6-digit HS code is required.
For shipments without IOSS, and for prohibited or restricted (P&R) goods such as alcohol, tobacco, excise goods, or items needing a licence, a full 10-digit HS code and country of origin are required.
Second, from November 2026, every declaration line item also needs a Product Identifier (PID), a code that identifies a specific product.
Three types of PID apply once the requirement takes effect:
If your product has no standardised code, confirm that none exists. Do not leave the field blank. Use codes at product model level, not per batch or unit. PID requirements are set by the EU, and DHL Express cannot advise on which PID to use for your product.
Previously, responsibility for many low-value clearances sat with the final consumer. Your courier filed the declaration in your customer’s name.
Under the reform, the IOSS holder comes first as the declarant and carries legal responsibility for the clearance.
Whether you are named as the declarant depends on how you sell:
Note: The execution of this change is handled automatically by your courier. No action is required from shippers.
The process remain the same as the ongoing practice.
For goods valued at €150 or less, VAT is collected at checkout through IOSS, or at the border if you are not registered for IOSS. Without IOSS, VAT is also charged on the duty and the handling fee.
Two things changed here, and both are operational, so your courier handles them fully.
First, low-value B2C parcels can no longer be cleared together as a consolidated group. Each parcel is cleared individually.
Second, non-IOSS B2C shipments (≤€150) must be cleared in the destination country where your customer is, not at the first EU point of entry.
What this means for you as an e-commerce seller is that each parcel is now cleared on its own data. Every parcel must carry complete standalone information, including its own value and its seller and buyer details. You can no longer rely on one dataset covering a consolidated batch.
This mainly affects non-IOSS direct sellers, while marketplace and IOSS sellers are less affected.
Before the reform, customs duty paid on a returned B2C order could be reclaimed under normal refund rules.
From 1 July 2026, the €3 custom duty on B2C returns valued at €150 or less is generally no longer refundable.
The €2 EU handling fee is never refundable. This holds even if goods are faulty, returned or refused.
Two things stay the same:
Across every step above, the quality of the data you provide at booking is what decides how smoothly your shipments move.
Be sure to show the retail value of the goods on your commercial invoice, since value is what duty and VAT are assessed against, and review your commercial invoice process before you ship.
We handle the customs clearance for you, as always. Once your shipment data is complete and accurate, we prepare and file the declaration on your behalf.
Under these new EU customs rules, all you need to do is provide the required information when you book.
On every shipment, make sure each product line carries a clear description, the correct value, and the HS code at the right level of detail.
If you ship with IOSS, a 6-digit HS code applies to most shipments.
If you ship without IOSS, or you ship prohibited and restricted goods, a 10-digit HS code applies.
Because the €3 duty and €2 handling fee are charged per declaration line, an accurate code on each distinct product keeps your duty calculated correctly. Missing or incorrect details can delay your shipment or send it back.
From 1 November 2026, you need the product identifiers covered above when you book a B2C shipment valued at €150 or less with DHL Express.
How you provide the information depends on how you ship with us:
If you sell direct into the EU with your own IOSS, we will contact you for the details we need to clear your goods, such as your name and address, EORI number, VAT ID, and confirmation of who acts as the Importer of Record.
The €3 duty applies per declaration line, regardless of the number of units on that line.It is not charged per parcel or per individual unit. Several units of the same product share one HS code, so they count as one line and one €3 charge. Three different products means three lines and €9, while three identical items means one line and €3. The level of tariff classification depends on the declaration used: H7 uses a 6-digit HS code, while H1 requires a 10-digit tariff code.
Both are owed by the declarant, which is the seller, importer or IOSS holder, or their customs representative. Who actually bears the cost depends on your Incoterms. Under DDP (Delivered Duty Paid), you pay the duty upfront and can build it into your price, so your customer sees no charge on delivery. Under DAP (Delivered At Place), the carrier collects it from your customer before delivery.
In most e-commerce cases, collecting the duty at checkout under DDP gives the smoothest experience and avoids refused parcels and surprise charges.
The EU handling fee is €2 per item and applies from 1 November 2026. It is charged on top of customs duty and VAT. It is counted per item, the same way as the €3 duty. It is a regulatory fee set by the EU, not a DHL Express fee. VAT is also charged on the fee.
Yes, EU import VAT still applies to low-value goods. The 2026 reform does not change this. You pay the destination country's standard VAT rate, which ranges from 17% to 27%, on top of duty and the handling fee.
EU shipments over €150 are charged standard customs duty at the normal EU tariff for the product, the same as before the reform. The €3 flat rate does not apply above €150. It is only for low-value goods of €150 or less
No, IOSS covers VAT only. The €3 duty and the €2 handling fee are separate charges settled at import. An IOSS number keeps your VAT simple but does not exempt you from either charge.
Marketplace sellers usually have no separate action to take for the charges themselves.
If you sell through a marketplace, the marketplace is the IOSS holder and handles the duty declaration for your low-value B2C orders.
Your responsibility as an eCommerce seller is to provide accurate product data (description, value, HS code, and Product Identifiers (PID)) when you create the shipment.
Note: PID takes effect on November 2026.
Yes. Both charges apply to B2C goods sent by post, the same way they apply to courier shipments. Postal operators often clear goods through a customs representative appointed by the origin postal service. Your IOSS number and product data, including product identifiers, still need to reach EU customs with the parcel. Check with your postal operator how to provide this data. With DHL Express, you enter it when you create the shipment.
Yes, goods with a 0% rate still pay €3 per item on B2C orders of €150 or less, plus the €2 handling fee.
No, the EU €3 customs duty is not refundable on B2C returns valued at €150 or less.
Duty charges for B2B shipment remain the same, which is based on standard rate of duty based on product's HS code. However, goods valued at €150 or less can no longer use the reduced (H7) declaration and must be cleared on a full formal (H1) declaration.
Usually not. Variants that share the same tariff code and description count as one item for the duty and the handling fee. Each variant still needs its own product identifiers, because a product identifier must point to one exact product variant.
Take one €10 item. From 1 November 2026 it attracts €3 duty and a €2 handling fee, which is €5 before VAT. VAT then applies on top of the goods, duty and fee. For low-priced products, build these charges into your EU pricing so your margin holds.
Yes, for one customer’s order. Parcels sent separately count as separate shipments, so the same product shipped in two parcels is charged twice. Keep one order in one parcel where you can. If the combined value goes above €150, the €3 rate no longer applies and normal duty rates apply instead. Never group orders from different customers into one shipment, because EU customs treats this as avoidance.
The €3 duty does not. Orders over €150 pay the normal EU duty rate for each product, as before. The €2 handling fee still applies per item, at any order value.
Yes. Each parcel is treated as a separate shipment, even when it belongs to the same order. The same product shipped in two parcels counts as one item in each parcel, so the €3 duty and €2 handling fee are charged twice. One parcel containing that product is charged once. If the value of a single parcel goes above €150, the €3 rate no longer applies and normal duty rates apply instead. Orders from different customers grouped into one shipment are still treated by EU customs as separate sales.
Enter your merchant PID and manufacturer PID as normal. For the standardised PID, confirm that none exists. Do not leave the field blank or invent a number, because a blank or false entry can hold up clearance.
You do, because you are the manufacturer. There is no required format, so your own model or article number works. Use one code per product model and keep it the same for the product’s life. Do not create a new code for each batch or unit. If you already have a barcode, you can use it as both manufacturer codes.
The EU accepts only a merchant PID and a manufacturer PID for some products. These include certain handmade goods, such as basketwork, hand-woven tapestries and handmade glassware, and unprocessed food and agricultural goods in HS chapters 1 to 15. Most other products, including batik garments and personalised items, need the full set. For a personalised product, give the codes of the underlying item.
In MyDHL+, add them on each product line when you create the shipment. Follow the fields shown on screen. If you ship through a platform or integration, the fields are added to the data your system sends us. This is usually a one-time setup by your system owner or IT team.
No, Product Identifiers are not required for VAT-registered B2B shipments. PIDs are only mandatory for B2C shipments from 1 November 2026.
Duty charges for B2B shipment remain the same, which is based on standard rate of duty based on product's HS code. However, goods valued at €150 or less can no longer use the reduced (H7) declaration and must be cleared on a full formal (H1) declaration.
For B2B shipments to VAT-registered businesses, the duty rate does not change under the reform. B2B shipments are charged the standard rate of duty, a percentage of the value based on the product's HS code.
Yes, but not for the €3 duty. For B2B, the €150 mark is what determines the declaration type. B2B shipments valued at €150 or less must now use the full H1 declaration instead of the old reduced H7 set. Above €150, standard full declarations and standard duty rates apply as before.
For B2B shipments to VAT-registered businesses, the duty rate does not change under the reform. B2B shipments are charged the standard rate of duty, a percentage of the value based on the product's HS code.
What changes is the declaration. From 1 July 2026, low-value B2B shipments valued at €150 or less can no longer use the reduced (H7) declaration and must be cleared on a full formal (H1) declaration, which requires more complete data for each shipment.
The duty rate stays the same. What changes is the paperwork. From 1 July 2026, B2B shipments valued at €150 or less are subject to normal customs tariffs and require a full import declaration (H1), replacing the shorter H7 declaration. You must provide detailed information for each declared item, including its 10-digit tariff code and country of origin.
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