EU De Minimis Exemption Ends July 1, 2026: What Importers Need to Know

The European Union is making a significant change to how low-value goods imported from outside the EU are taxed. Starting July 1, 2026, the longstanding customs duty exemption on shipments valued at €150 or less — known as the "de minimis" exemption — will no longer apply. If you ship goods into the EU or receive international shipments as a business or consumer, this change affects you directly. ShipX is sharing this update ahead of the effective date so you have time to prepare.

What Is Changing and Why It Matters

Until now, goods imported into the EU in a shipment with an intrinsic value of €150 or less could enter without import duty under the de minimis exemption. From July 1, 2026, that exemption ends. In its place, a flat €3 customs duty per line of the customs import declaration will apply to shipments valued at €150 or under. This applies to ecommerce sellers, online marketplaces, businesses, and consumers receiving international shipments. This is a government-mandated fee — not a ShipX surcharge. As per ShipX's standard process, at the time of import ShipX will disburse the amount to the customs authorities and recover it from the customer.

Key Exceptions to the €3 Duty

Not every low-value shipment will be subject to the flat €3 duty. Two exceptions apply:

• B2B shipments to VAT-registered recipients: Standard duty rates apply instead of the €3 flat fee.
• Free trade agreement (FTA) shipments NOT sold under the IOSS scheme: Duty relief can be applied. However, if an FTA shipment is sold under the Import One Stop Shop (IOSS) scheme, the €3 duty per declaration line still applies.

New Product Identifier Requirements

Alongside the duty change, the EU Commission is introducing mandatory product data requirements for all B2C shipments with an intrinsic value under €150. Beginning June 15 (for July 1 clearance), each product in these shipments must include:

• The merchant product identifier
• The non-standardized manufacturer product identifier
• The standardized manufacturer product identifier (only if one exists)

These Product Identifiers (PIDs) provide traceability of imported items. ShipX, acting as customs broker at the time of import, will be required to submit these identifiers in the customs entry during the clearance process. Missing this data will make it impossible to clear shipments. Ensure your product records include this information before the June 15 deadline.

What About VAT?

VAT rules for imports into the EU are not changing. The VAT de minimis exemption was already removed in 2021 — all goods imported into the EU have been subject to VAT regardless of value since then. That remains the case.

A Note on IOSS

The Import One Stop Shop (IOSS) is an optional EU scheme introduced in 2021 that allows ecommerce suppliers and online marketplaces to declare and pay VAT on low-value goods (up to €150) at the point of sale, rather than at the time of shipping. This helps prevent unexpected charges for recipients and supports faster customs processing. ShipX strongly recommends investigating IOSS registration before July 1 if you have not already done so.

What's Coming After July 1

The European Commission has also proposed an EU-wide handling fee for low-value goods delivered to consumers, expected to be implemented at the end of 2026. National handling fees already introduced by individual EU member states — including France, Italy, and Romania — may continue to apply in the interim.

Frequently Asked Questions

What is the de minimis exemption?

An exemption that removes import duties on low-value goods. In the EU, it applied to imported goods in a shipment with an intrinsic value of €150 or less. It ends July 1, 2026.

What is a product identifier?

A product identifier is a code that provides traceability of an item — identifying the manufacturer, seller, and the specific product.

What is IOSS?

The Import One Stop Shop (IOSS) is an optional EU scheme that allows ecommerce suppliers and marketplaces to declare and pay VAT on low-value goods at the time of sale. It helps avoid unexpected charges for recipients and can speed up customs processing. ShipX strongly recommends investigating IOSS registration before July 1.

Is the €3 customs duty a ShipX fee?

No. The €3 customs duty is a government-mandated fee, not a ShipX surcharge. ShipX will disburse the amount to the authorities at the time of import and recover it from the customer as part of its standard process.

What is the proposed EU-wide handling fee?

The European Commission has proposed a handling fee to cover administrative processing costs for goods imported into the EU and delivered to consumers. It is expected to be introduced at the end of 2026. Some EU member states (France, Italy, Romania) already have national handling fees that may continue to apply.

Will VAT rules change?

No. VAT on EU imports is unchanged. The VAT de minimis exemption was removed in 2021, and all imports into the EU are already subject to VAT regardless of value.

Prepare Now

The July 1, 2026 effective date is approaching, and the June 15 product identifier deadline comes even sooner. There are concrete steps to take before then: audit your product data to ensure PIDs are in place, evaluate whether IOSS registration is right for your business, and confirm how these changes will affect your landed costs. ShipX is here to help you navigate the transition. Contact your ShipX representative to discuss how these changes apply to your shipments and what steps to take next.