Effective July 1, 2026, the EU is abolishing its long-standing €150 duty-free de minimis threshold. This means every parcel entering the EU from outside the bloc, regardless of value, will be subject to customs duty.
NOTE: The UK’s own £135 threshold remains in place for now but is confirmed for removal by March 2029.
This update is especially relevant to UK businesses that source goods from Southeast Asia or China and either sell directly to EU customers or route shipments through EU entry points. Importers, e-commerce sellers, and B2B buyers operating on DDP or DAP terms will need to understand the new customs clearance obligations and cost implications.
Background
The de minimis exemption previously allowed low-value goods to enter the EU duty-free. Lawmakers on the EU Council voted to abolish the threshold in November 2025. This moved the original 2028 implementation date forward by two full years to aggressively combat the influx of undervalued goods.
Rule Change
NOTE: Value-Added Tax (VAT) rules remain unchanged in principle. The incoming legislation strictly modifies customs duty collection, leaving the existing VAT mechanics intact.
From 1st July 2026
Duty Threshold
Goods valued at €150 or less, which were previously exempt from customs duties, will now face a flat €3 customs duty per item. This applies to all businesses shipping Direct to Consumer (D2C) into the EU from non-EU countries (incl. UK).
Declaration
It should be noted that this temporary €3 charge is levied per item category (tariff sub-heading/commodity code) rather than a flat fee per parcel. For a UK retailer shipping a single box containing one silk blouse and two wool blouses, this translates to:
- The package is treated as containing two separate item categories
- This single parcel will attract a €6 customs duty (€3 multiplied by two distinct commodity lines)
NOTE: Non-IOSS (Import One-Stop Shop) shipments must now clear in destination country, not at first EU entry point. This is expected to add cost and delay.
NOTE: An additional handling fee of about €2 per customs declaration line will take effect EU-wide from November 2026. Some countries, including France, Italy, and Romania, have already introduced national-level parcel handling fees, which add to the overall cost.
From 1st July 2028
The flat €3 duty will be replaced by standard product-specific tariffs managed via the EU’s Customs Data Hub. These rates are generally higher and reflect the normal customs duties per product category.
Who Is Affected
The removal of the €150 de minimis exemption directly impacts specific UK business profiles involved in trade between Asia and the EU.
The first group includes UK businesses selling D2C in the EU with supply chains based in Asia. These companies might source goods from Southeast Asia (or China), ship them to British warehouses, then fulfil individual orders to European buyers. Every outbound parcel in that flow now face the €3 customs duty.
NOTE: Importers that similarly source via Asia but route part of their inventory through EU distribution are also affected. Duty will still apply at the point of EU entry for these shipments.
Further Reading: Guide to Shipping from China to the UK
Under the July 2026 EU Customs Reform, Delivered At Place (DAP) shipping for low-value B2C parcels is becoming obsolete. Because the consumer is technically the Importer of Record under DAP, there is no designated business declarant on the electronic data manifest. This often leads to automated border rejections and severe carrier restrictions. The buyer will also now face significant, often prohibitive, carrier handling fees, high VAT, and a new €3 flat duty. This likely increases the risk of consumer refusal and abandonment.
Businesses using Delivered Duty Paid (DDP) shipping terms are arguably best positioned logistically. However, the end of de minimis is still a direct hit to their financial margins. If commercial contracts were priced when the duty was zero, the €3 per-item charge now falls directly on the seller’s margins from 1st July.
Impact
After the United States ended its own de minimis exemption in August 2025, air parcel volumes from China and Southeast Asia declined sharply. The removal of the EU de minimis exemption would likely similarly reshape freight patterns between Asia and Europe.
UK enterprises shipping low-value goods via air freight will find the underlying economics structurally worse than before. Historically, couriers bundled thousands of low-value, duty-free packages onto a single aggregate manifest to speed them through customs. Because every item under €150 now triggers a mandatory €3 flat duty, customs authorities require granular, item-level data for every single box. Every individual parcel must carry precise electronic HS codes, country of origin details, and itemized valuations. Attempting to group-clear these shipments without this micro-data will result in immediate border rejections.
NOTE: France’s early introduction of a national parcel handling fee in March 2026 illustrates this shift. Customs declarations for small parcels at Paris Charles de Gaulle airport dropped by 92% in the first week, leading to the cancellation of approximately 50 freighter flights. Similar effects will likely occur across other major EU entry points after July 2026.
Higher-value or time-sensitive shipments, such as automotive parts, medical devices, and industrial components, will continue to face customs duties but will experience fewer changes in duty exposure. However, these shipments may encounter additional documentation requirements and potential delays as EU customs processes adjust.
Customs Compliance
Starting 1 July 2026, every commercial shipment entering the EU must include:
- Item-Level Customs Declarations
- Every low-value parcel requires a formal, electronic customs declaration before arrival.
- Precise 10-Digit HS Codes
- Standard 6-digit Harmonized System codes are no longer sufficient; full 10-digit codes are mandatory for item classification.
- Accurate Country of Origin (COO)
- The exact manufacturing origin of every individual item must be digitally declared.
- ICS2 Mandatory Data
- Shipments must fully comply with the EU’s Import Control System 2 (ICS2) by providing comprehensive advance cargo information.
- Landed Cost Transparency
- Detailed pricing data showing the flat €3 duty per item and applicable VAT must be digitally accessible to customs authorities.
- IOSS System Updates
- Businesses utilizing the Import One-Stop Shop (IOSS) must update their software platforms to process and report both VAT and the new flat duties simultaneously.
NOTE: Despite investments in digital customs systems, EU authorities expect clearance times to increase by one to three days during peak periods due to the higher volume of declarations. This delay should be factored into delivery schedules.
Taking Action
UK businesses shipping goods from Asian origins into European markets should take the following steps before the July deadline:
- Review Incoterms
- Any live DDP agreement that was negotiated under the old de minimis regime should be reviewed and repriced before the first post-deadline shipment moves
- Audit HS Codes
- Customs duties are calculated per HS classification, and incorrect or missing codes can cause delays and penalties. Do not assume that HS codes provided by Asian suppliers are accurate for EU imports; verify and correct them where necessary.
- Consolidate Shipments
- Instead of drop-shipping individual small customer parcels directly from Asian factories through express air couriers, transition to a consolidated freight model.
- A single consolidated sea freight shipment from Vietnam or China to an EU warehouse requires one customs declaration. This avoids multiple €3 per-item category duties and declarations at the final delivery stage.
- Instead of drop-shipping individual small customer parcels directly from Asian factories through express air couriers, transition to a consolidated freight model.
Conclusion
The EU’s removal of the €150 de minimis exemption takes effect in days, bringing tangible compliance requirements and cost changes for UK businesses trading with or through the EU. The duty impact is measurable and should be addressed now.
SLG Logistics offers services including customs clearance, sea freight consolidation from Southeast Asia, DDP shipping, and UK-based warehousing. Businesses with questions about how these changes affect their shipment flows are encouraged to contact us for tailored guidance.