From 1 July 2026, the EU’s €150 duty exemption disappears. Every parcel now needs full customs clearance, and Huboo has solutions ready.
For years, goods imported into the EU under €150 benefited from reduced customs requirements, allowing low-cost items to enter the EU without paying import duty.
The EU is now changing this system. Starting 1st July 2026 the EU will remove the current “de minimis” exemption on low-value shipments under a total value of €150.
Under the revised regulations, a €3 customs fee will be charged for every entry on the import declaration. Each entry may cover one or multiple products, depending on the applicable tariff classification. In summary, the €3 fee applies to every separate tariff code and/or country of manufacture of the goods.
Examples:
1. Two shirts and a wool sweater of Cambodja origin;
Customs duties would be charged at €6.00.
2. One shirt of Cambodja origin, one shirt with India origin and a wool sweater of Cambodja origin;
Customs duties would be charged at €9.00
3. Three shirts of India origin;
Customs duties would be charged at €3.00
VAT rules remain unchanged (VAT has applied to all imported goods since 2021).
From a strategic perspective, if you are selling into the EU from outside the bloc, the changes will mean:
– New charges
– Higher compliance obligations
– You may need to rethink pricing, margins, and distribution strategy
– Increased transit times in some scenarios, especially around implementation and during peak periods
– If sending bulk stock into EU warehouses, forecasting will be key
New charges:
– From 1 July 2026: a temporary €3 duty per item type/HS Code applies for orders under €150. From 2028, this will be replaced by a percentage-based tariff determined by the HS code
– Carrier handling/brokerage fees may apply depending on your shipping method and IOSS status
– Several EU member states (including France and Italy) have already introduced their own national handling fees. These are separate from the EU-wide reform
– From November 2026 at the earliest, a €2 EU-wide handling fee may apply, this is not yet confirmed law
The impact on your business and your customers depends on how VAT and import costs are handled, particularly whether you use the Import One Stop Shop (IOSS) and whether you ship under DDP or DDU terms.
What is IOSS?
IOSS is an EU VAT scheme that allows non-EU sellers to collect VAT at checkout for eligible goods (typically under €150), rather than having it collected at the border.
– With IOSS: VAT is paid at checkout, which helps speed up customs clearance and reduces unexpected charges for customers on delivery.
– Without IOSS: VAT is collected at import, which can result in additional charges and handling fees being paid by the customer on delivery.
IOSS + DAP/DDU postal services, which is essentially the standard postal model that’s existed since July 2021 and how all clients currently ship to the EU with a valid IOSS number for orders under €150.
How it works:
– Merchant collects VAT at checkout via IOSS number
– Shipment goes DDU via postal operator on DAP service (Royal Mail, Fedex etc)
– IOSS number is passed to customs electronically
– Customs recognises VAT as pre-paid — no VAT charge at the door
– Parcel delivered without the customer paying anything extra
Why it’s been working fine:
– VAT is the only thing that needed settling pre-July 2026
– No duties applied under €150 de minimis
– So DAP/DDU + IOSS covered everything needed
Why the changes in July 2026 breaks this model:
– The €3 duty is now due on IOSS shipments that were previously exempt
– Under DDU/DAP that €3 has no mechanism to be collected at checkout
– The end consumer must pay the €3 per HS code upon delivery
IOSS will support the management of the new tariffs for VAT, so depending on whether you are IOSS registered or not, the duties will be handled differently.
Clients who are IOSS registered and ship under the current DAP. In this model:
Clients who are IOSS registered may choose to continue to ship under a DAP/DDU service. In this model, VAT is pre-collected at checkout via the client’s IOSS number, however any additional charges arising at customs are passed to the end consumer upon delivery. This can result in unexpected costs for customers from July 2026 onwards due to the new €3 per HS code duty.
How is this paid?
– VAT is collected at checkout via the client’s IOSS number
– The €3 per HS code fee is billed to the end consumer
Clients who are IOSS registered and ship under DDP. In this model:
VAT and applicable duties are collected prior to shipping, ensuring that the end consumer receives the parcel without additional charges on delivery. This creates a smoother customer experience, reduces delivery issues, no unexpected fees, and is generally more cost-efficient. Shipping rates are typically more cost-effective than DDU.
How is this paid?
– VAT and duties is collected at checkout via IOSS;
– The new customs fee (€3 per unique HS Code) will be billed to you by the carrier via Huboo
– Administration fee will be billed to you by the end carrier via Huboo
Clients who are not IOSS registered can only ship under a DDU service. In this model:
All import duties, taxes, and potential handling fees are charged to the end consumer upon delivery. While this removes any tax liability from the seller, it can result in unexpected costs for customers, leading to higher refusal rates and returns. Shipping rates are typically higher compared to DDP.
How is this paid?
– VAT is billed to the end consumer
– The 3 euro per HS code fee is billed to the end consumer
– Potential handling and brokerage fees will be billed to the end consumer
We are implementing key workstreams to help you prepare for the July deadline.
For IOSS registered clients who want to continue or are interested in shipping via DDP or DAP:
1. Ensure your IOSS number is valid.
If your IOSS number is not valid when entering customs, it will fail validation upon entry into customs clearance. This may not only trigger customs audits on your business, but in some EU member states, knowingly submitting incorrect customs data carries financial penalties beyond just the unpaid VAT.
2. Ensure your IOSS number is logged on your Huboo dashboard
You can view, add or amend your IOSS number under ‘Settings’> ‘Billing Information’
3. Ensure your HS6 codes are validated
If your HS/commodity codes are not valid or incorrect, this can cause shipments to be held at customs pending reclassification. This causes delays, failed delivery promises and potentially shipments to be seized or returned.
4. Connect with us to connect you to the better carrier option to reduce costs and accelerate transit times.
For clients NOT registered to IOSS via DDU:
1. Understand the pros and cons of being IOSS registered. For many merchants shipping sub €150 goods into the EU, IOSS can be a suitable option, provided it is set up correctly and maintained in compliance with the relevant requirements, and the associated risks are understood. If you do not currently have an IOSS number and choose to proceed with registration, our partners can support you through the process.
2. Ensure your HS6 codes are validated.
3. We will connect you to the better carrier option to reduce costs and accelerate transit times.
Not sure where you stand?
Contact us for a readiness check: [email protected].
The end of de minimis in the United States in 2025 offers a preview of what Europe could expect. Logistics strategies have shifted toward consolidating shipments, with many businesses moving from individual low-value parcels to bulk freight imports.
By importing goods in bulk and storing them within Europe, companies can reduce the need for per-order customs clearance, helping maintain service levels and improving efficiency at the point of fulfilment.
Huboo operates fulfilment centres in Spain and the Netherlands, allowing you to store inventory within the EU and fulfil orders locally. This helps remove per-parcel customs charges and delays for your end customers.
To begin local EU fulfilment, you must complete the following steps:
• Register for an EU EORI Number
You will need an Economic Operators Registration and Identification (EORI) number to import palletised stock into the EU customs territory.
• Register for VAT
You must register for VAT in the country where your inventory is stored (Spain or the Netherlands). Non-EU businesses storing goods within the EU are generally required to register for local VAT.
• Arrange Freight & Imports
Ship your stock in bulk freight consignments to our EU warehouses. Import VAT and customs duties will usually be payable at the point of entry by you or your appointed fiscal representative.
• Register for OSS (One Stop Shop)
If you plan to sell to customers in multiple EU member states from your EU-held inventory, you may register for the Union OSS scheme to simplify cross-border VAT reporting across the EU.
We have partners who can help you on the steps above.
picking accuracy rate
warehouses in the UK, Netherlands , Spain and US
sales channel integrations
The end of the EU de minimis exemption is one of the most significant shifts in cross-border e-commerce in a decade.
From 1 July 2026, every parcel entering the EU under €150 will incur a €3 duty per item type, and costs are likely to rise further with other fees at the approval stage, and full tariff-based duties replace the flat rate in 2028.
For sellers outside the EU, the direction of travel is clear: the businesses that adapt early, getting IOSS-registered, cleaning up their HS codes, and reviewing their fulfilment model will be better placed for both the July 2026 deadline and the larger 2028 transition.
Huboo’s EU fulfilment centres in Spain and the Netherlands offer a practical route to sidestep per-parcel import charges entirely, fulfilling orders domestically and removing customs friction for your end customers.
For those continuing to ship cross-border, IOSS registration and DDP shipping are highly recommended to protect the customer experience.
The window to act is short.
Speak to Huboo today about how to structure your EU fulfilment strategy before July.
