As of 1 July 2026, the customs treatment of low-value consignments from third countries changes fundamentally. The existing customs duty exemption for goods in consignments with an intrinsic value of up to EUR 150 is being abolished. On a transitional basis, it is replaced by a flat-rate duty of EUR 3 per item. The new rules are aimed in particular at cross-border e-commerce, but they may also be relevant to companies that handle low-value import consignments in their supply chains.
Background
The so-called EUR 150 exemption threshold was originally intended to prevent customs authorities and economic operators from being burdened, in the case of small consignments, with an administrative effort out of proportion to the potential customs revenue. In the view of the EU Commission, this argument no longer holds today. On the one hand, import data is now largely available electronically. On the other hand, cross-border online trade in small consignments sent directly to end customers has reached a volume that puts the original exemption in a different light.
With the abolition of the EUR 150 threshold, the EU is pursuing several objectives: it wants to reduce distortions of competition to the detriment of brick-and-mortar retail and regular importers, strengthen the enforcement of product safety and compliance requirements, and enable customs authorities to better identify risky consignments, above all with regard to undervaluation. The new rules are thus not only fiscally motivated, but form part of the EU customs reform, which is aimed above all at e-commerce.
What is changing?
Until now, goods in consignments with an intrinsic value of no more than EUR 150 were, in principle, subject to import VAT and to the customs declaration requirement, but were exempt from customs duty under Article 23 of the Customs Duty Relief Regulation (Regulation (EC) No 1186/2009). This customs duty exemption now ceases to apply. From 1 July 2026, a flat-rate duty of EUR 3 per item applies, on a transitional basis, to the low-value consignments from third countries concerned. Where a consignment contains different types of goods, the amount may therefore be incurred several times. The flat-rate arrangement is designed as a transitional solution and is to apply until 1 July 2028. After that, the goods concerned are, in principle, to be subject to the regular duty rates under the Common Customs Tariff. The transitional phase also serves to prepare the planned structures of the EU customs reform, in particular the EU Customs Data Hub.
For goods in postal consignments (Article 1(24) of Delegated Regulation (EU) 2015/2446), the EU Commission is currently working on an amendment to the Delegated Regulation. The Directorate-General for Taxation and Customs Union (TAXUD) has published guidance on the abolition of the EUR 150 exemption threshold. As part of the revision, goods in distance sales are in future to be declarable only by the IOSS user, the holder of a special arrangement, or the indirect representative.
A special rule is to apply to postal operators since, owing to the circumstances of postal traffic, they must rely on the information transmitted by the postal operator in the country of origin and have no possibility of making direct contact with the IOSS holder or the sender of the consignment. In this case, the third-country postal operator is to appoint a declarant in the EU, who then acts as an indirect representative, depending on the constellation, in the name of the IOSS holder, the holder of a special arrangement, or the importer.
Further costs
The abolition of the EUR 150 threshold has no effect on import VAT. This continues to be incurred and is settled, depending on the distribution model, in particular via IOSS, special arrangements, or the standard procedure. In November 2026, a Europe-wide handling fee per consignment is then also to be added.
Practical consequences
Directly affected are, above all, companies that supply goods from third countries into the EU by way of distance sales, in particular platforms, online retailers, fulfilment service providers, and importers with small-scale B2C consignments. Indirectly, however, the change may also affect other companies, for example where spare parts, samples, accessories, promotional materials, or components valued at under EUR 150 are regularly sourced from third countries.
Companies that do not themselves act as a platform or retailer should also review their supply chains. Of particular relevance are who acts as declarant, importer, or indirect representative for customs purposes, how the costs are allocated within the contractual relationship, and whether existing Incoterms and price and logistics clauses appropriately reflect the new customs burden.
The new rules will make themselves felt above all in terms of volume. Particular attention should be paid to tariff classification. Since the flat rate is incurred per item, the importance of correct commodity codes increases even for low-value consignments. Companies should also review whether their existing simplification and platform processes remain economically sensible. Models that have so far relied on the customs duty exemption for small consignments lose attractiveness as a result of the new burden. Conversely, imports consolidated by tariff code, EU warehousing structures, or adapted fulfilment models gain in importance.
Conclusion
The abolition of the EUR 150 threshold fundamentally changes how low-value import consignments are handled. What was previously treated as a mass business of limited customs relevance moves into the focus of customs clearance, product safety, and supply chain compliance.
