EU Customs Duties for Importers: Under & Over €150

The Old Rule vs. the New Reality

For years, selling low-value goods from China directly to EU consumers came with a built-in cost advantage. Parcels worth €150 or less entered the EU completely duty-free — though VAT still applied. That era ended on July 1, 2026.

The EU formally abolished the €150 customs duty exemption under Council Regulation (EU) 2026/382, replacing it with a new temporary flat-rate duty. The change accelerated a reform that was originally scheduled for 2028, driven by the sheer scale of parcel volumes flooding into Europe — nearly 5.9 billion low-value items shipped into the EU in 2025 alone, with roughly 90% originating from China.

Key takeaway: There is no longer any value threshold below which your EU-bound shipments are automatically exempt from customs duties. Every parcel from outside the EU is now in scope, regardless of price.

Shipments Under €150: The New €3 Flat Duty

The headline number is €3 — but the devil is in the details. Starting July 1, 2026, a flat €3 customs duty applies per tariff line (i.e., per HS code) on qualifying consignments valued at less than €150. This is a temporary measure set to remain in place until July 1, 2028, when the EU Customs Data Hub becomes operational and full standard tariff rates will apply instead.

How the €3 duty is calculated in practice

• Per HS code, not per parcel. The €3 fee is charged once per distinct tariff classification within a shipment. An order containing three different product categories (three HS codes) incurs €9 in duty — not €3.
• Multiple identical units = one charge. Ten units of the same product under one HS code still pay a single €3 duty. Consolidating SKUs matters.
• Based on intrinsic value. The €150 threshold is calculated on the price of the goods alone — shipping, insurance, and other fees listed separately on the invoice do not count toward this figure.
• IOSS sellers are the primary target. The €3 flat rate primarily applies to B2C distance sales where the non-EU seller is registered under the EU's Import One-Stop Shop (IOSS) for VAT purposes — covering an estimated 93% of all EU cross-border e-commerce flows.
• Non-IOSS shipments follow a different path. Non-IOSS B2C shipments under €150 must clear customs in the destination member state and are subject to duty calculated at the standard tariff rate rather than the flat €3.

What about VAT?

VAT on low-value imports was already overhauled back in July 2021, when the EU eliminated the old €22 VAT exemption. Today, all goods imported into the EU are subject to VAT regardless of value — that part hasn't changed. What's new is that the €3 customs duty is added on top of VAT, and VAT itself is calculated on a base that now includes the duty. In other words, the €3 increases your VAT base slightly too.

IOSS remains your best tool for a smooth VAT experience. Without it, your carrier will collect import VAT from your customer at delivery — usually with an additional carrier handling fee of €10–20. Most customers refuse the package or file a chargeback when hit with an unexpected bill at the door.

Shipments Over €150: Standard Tariff Rules Apply

Goods valued above €150 were never covered by the de minimis exemption, so the July 2026 reform does not change how they are treated. Standard EU customs tariffs apply in full, based on three variables:

1. HS code — the international product classification (6 to 10 digits)
2. Country of origin — China does not benefit from EU preferential trade agreements, so Most Favoured Nation (MFN) rates apply
3. Customs value — typically the transaction value (goods price + freight + insurance to the EU border)

EU import duty rates vary significantly depending on the product category. There is no single universal tariff — rates differ across the EU's Combined Nomenclature. Electronics often attract 0–3%, while textiles, footwear, and consumer goods from China can face rates of 12–20% or more. Always verify the applicable rate using the EU's official TARIC database before pricing your product for the EU market.

Side-by-Side: Under €150 vs. Over €150

The Handling Fee: A Separate Charge Coming Soon

Don't confuse the €3 customs duty with the proposed EU-wide handling fee — they are two entirely different charges. An EU-wide customs handling fee is still under negotiation between the Council and the European Parliament, with a potential effective date of November 2026. This separate fee is designed to offset the administrative costs borne by customs authorities and would be charged in addition to the €3 duty and VAT.

Several EU member states — including France, Italy, and Romania — have already introduced or are considering national-level surcharges on imported parcels. The landscape is still evolving, and merchants should monitor their key destination markets closely.

What This Means for Shopify Sellers Sourcing from China

If you're sourcing products from platforms like 1688, Taobao, or Tmall and shipping direct to EU consumers, these changes touch every part of your operation — from product pricing to checkout UX to supplier communication.

Here's your practical action checklist:

1. Audit your HS codes now. Incorrect or vague classifications will trigger delays, duty reassessments, or penalties. Generic descriptions like "accessories" or "goods" are no longer acceptable. Each SKU needs a precise, defensible HS code.
2. Recalculate your landed costs. For low-value orders, factor in €3 per product category per shipment, plus VAT, plus any carrier handling fees. For orders over €150, apply the correct MFN duty rate from TARIC.
3. Register for IOSS (or work with a partner who does). IOSS lets you collect EU VAT at checkout so customers receive a clean, duty-paid delivery. Without it, your customer faces a surprise bill at the door — and your conversion and retention suffer.
4. Consider your pricing strategy. You have three options: absorb the duty (margin hit), pass it to the customer (display it transparently at checkout), or restructure your product mix toward higher-AOV items where fixed fees represent a smaller percentage of revenue.
5. Prepare electronic shipment data. Customs authorities now require standardised pre-arrival data: precise product descriptions, seller and buyer information, consignee details, and HS codes. Starting November 1, 2026, Product Identifiers (PIDs) will also be expected.

If you're managing multiple suppliers across Chinese marketplaces, keeping all this compliance data organised is genuinely hard. Tools like Piratify are designed to centralise your sourcing and fulfillment from a single dashboard, so supplier data, product descriptions, and order flows are structured from the start — the kind of clean foundation you need when customs authorities demand accuracy on every shipment. You can also explore how consolidating shipments affects your duty exposure in our guide to Shopify fulfillment options from China.

A Note on Undervaluation: Don't Do It

Historically, some sellers declared goods below their actual value to stay under the €150 threshold and avoid duties. The EU has explicitly flagged this practice as a major driver of the reform. With the new flat €3 duty applying regardless of value up to €150, the financial incentive to undervalue shipments under the threshold is largely gone — but for goods over €150, undervaluation remains both a legal risk and a customs fraud exposure. Customs authorities are investing in data-driven enforcement, and the new mandatory electronic data requirements make mismatches far easier to detect.

For a deeper look at compliant product labelling and documentation requirements when importing from China, see our guide on China product compliance for the EU market.

FAQ

Does the €3 duty apply to all EU countries equally?

The €3 flat customs duty is an EU-wide measure and applies uniformly across all 27 member states — it is explicitly non-discriminatory. However, individual member states may layer their own national handling or processing fees on top. Belgium, France, Italy, the Netherlands, and Romania have already introduced or are considering national surcharges. Always verify the fees specific to your main destination markets.

If I use IOSS, do I still pay the €3 customs duty?

Yes. IOSS handles VAT collection at the point of sale — it does not exempt you from customs duty. The €3 flat duty is owed separately and is in addition to VAT. Using IOSS simply ensures your customer doesn't face a VAT bill (and carrier handling fee) at the door. Merchants using IOSS still need to account for the duty in their cost structure.

What happens after July 2028 when the €3 flat rate ends?

The temporary €3 duty is set to apply until July 1, 2028, when the EU Customs Data Hub is expected to be operational. At that point, all low-value e-commerce imports — currently under €150 — will become subject to standard customs tariff rates based on their HS classification, the same framework that already governs shipments over €150 today. Sellers who get their product classifications right now will be far better positioned for that transition.