End of the customs duty relief for low-value shipments in the EU

End of the customs duty relief for low-value shipments in the EU

The EU has approved the abolition of the customs duty relief for low-value shipments from third countries, i.e. those with an intrinsic value not exceeding €150 (Council Regulation (EU) 2026/382 of 11 February 2026). The regulation will enter into force 20 days after its publication and will apply in all EU Member States from 1 July 2026. 

Until now, European customs regulations exempted low-value goods sent directly from third countries from import duties, with the aim of avoiding disproportionate administrative burdens on authorities, businesses and individuals. However, given the digitisation of customs systems and the availability of electronic import data, the EU has decided that this exemption is no longer justified. 

The decision also responds to the exponential growth of international e-commerce, which has led to a massive increase in small consignments and facilitated abusive practices, such as the undervaluation of goods or the artificial splitting of consignments to benefit from the exemption. This reform aims to strengthen fairness in trade and improve customs controls. 

This measure conludes the reform that began in 2021 with the abolition of the VAT exemption for imports up to €22, as set out in Directive (EU) 2017/2455. However, the duty-free allowance of up to €150 remained in place, creating an imbalance whereby low-value imports were subject to VAT but not to customs duties. 

As a transitional measure, whilst a centralised EU customs IT infrastructure is being developed, a simplified regime will be established and will be applicable from 1 July 2026 to 1 July 2028. During this period, a fixed customs duty of €3 per item will apply to goods included in consignments whose total intrinsic value does not exceed €150. This simplified system will apply to operators registered under the IOSS scheme and to postal consignments, regardless of the origin of the goods.