2026 EU Customs Reform: What the End of the Duty-Free Threshold Means for Your Shipments

A Major Shift in EU Customs Rules Is Coming

As of 1 July 2026, the European Union (EU27) will eliminate the customs duty-free treatment for low-value imports — shipments valued at €150 or less. At the same time, a new flat customs duty for Business-to-Consumer (B2C) shipments will be introduced.

This means customs duty and import VAT charges will now depend on the type of shipment (B2C or B2B) and the clearance process used — and will no longer automatically benefit from the ≤ €150 exemption.

This change is part of a broader set of regulations under the EU Customs Reform (EUCR), and it could directly impact your cross-border shipping operations.

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.

What Does “Duty-Free Elimination” Actually Mean?

Duty-free elimination means that goods imported into the EU will no longer benefit from automatic customs duty relief simply because their value is €150 or less.

For low-value (≤ €150) B2C shipments, under the current EUCR proposal, a flat customs duty of €3 will be applied per line item in the customs declaration — generally identified by Harmonized System (HS) code and Country of Origin. Here's how that works in practice:

IOSS Shipments — €3 per line item, based on 6-digit HS code

• One item, one HS code → 1 × €3 = €3
• Multiple items with three different HS codes → 3 × €3 = €9
• Multiple items, all with the same HS code → 1 × €3 = €3

Prohibited & Restricted (P&R) Goods and Non-IOSS Shipments — €3 per line item, based on 10-digit HS code and Country of Origin

• Three items, same HS code but three different Countries of Origin → 3 × €3 = €9

Note: P&R goods refer to items such as excise goods, alcohol, tobacco, or products requiring additional licenses.

Low-Value B2B Shipments

For low-value B2B shipments, customs duty is charged based on the applicable EU percentage duty rate, or a preferential rate under a trade agreement where the relevant conditions are met.

Important: The IOSS scheme will not be used to collect the new €3 customs duty.

What Does This Mean for You?

For Shippers

If you're shipping from a non-EU country to the EU27, you should be aware of this new regulation and understand that your shipments may now be subject to additional import duties based on the country of manufacture and the product specification.

For Receivers

If you're receiving shipments in the European Union, be aware that, following this EU regulatory decision, the duty de minimis threshold (≤ €150) will be removed from 1 July 2026. As a result, shipments of any value may be subject to customs duty.

Whether duty is payable will be assessed by the relevant customs authorities based on factors such as the type of goods being imported, the HS code, and the Country of Origin — in line with standard customs rules.

To ensure a smooth delivery and uninterrupted customer experience, DHL strongly recommends selecting the “Duties and Taxes Paid (DTP)” billing service. With this service, the private individual receiver — your customer — won't be contacted for payment before, during, or after delivery.

How Can You Avoid Delays?

Shippers sending goods from the Rest of World to the EU27 should:

• Inform EU27 receivers that customs duties and Value Added Tax (VAT) may apply.
• For Import One-Stop Shop (IOSS) shipments, ensure DHL has a valid Power of Attorney from the IOSS holder.
• Provide complete and accurate Commercial/Proforma Invoice data electronically via DHL Express Electronic Shipping Solutions — including goods descriptions, itemized retail values, country of origin, and more.

Stay Ahead of the Change

These changes mark a significant shift in how low-value shipments to the EU are treated for customs purposes. Preparing now — with accurate documentation, the right billing services, and clear communication with your customers — will help you avoid delays and keep your shipments moving smoothly after 1 July 2026.