A new EU customs duty on small parcels takes effect on 1 July 2026, ending the long-standing exemption that let billions of low-value packages enter the bloc duty-free. The temporary €3-per-item charge lands squarely on direct-to-consumer giants such as Shein and Temu, whose models were built around the threshold. It is the first concrete piece of the Union’s wider customs overhaul to reach ordinary shoppers.
## How the customs duty on small parcels works
The €3 charge applies per category of item inside a parcel, identified by its tariff sub-heading, rather than per package. A parcel holding a silk blouse and two wool blouses contains two distinct items, so €6 in duty would be due.
Importantly, the duty is levied on businesses, namely the seller, importer or their representative, not collected from consumers at the door. It will apply to goods whose sellers are registered in the EU’s Import One-Stop Shop for VAT, covering an estimated 93% of e-commerce flows into the bloc.
## Why the de minimis exemption is ending
Until now, consignments worth less than €150 entered the EU free of customs duty. That relief was designed for an era of occasional gifts, not the billions of parcels now arriving each year from non-EU platforms.
Regulators argue the exemption distorted competition with European retailers, encouraged undervaluation, and strained customs checks on product safety. Ending it is meant to level the field and tighten oversight.
## What it means for platforms and shoppers
The shift hits ultra-low-cost platforms hardest, since their pricing depended on duty-free entry. Some of the cost is likely to filter through to advertised prices, though competition may absorb part of it.
Logistics firms and marketplaces face fresh administrative work, from tariff classification to IOSS registration. For consumers, the headline change is less about a visible fee and more about gradually higher prices on some imported goods.
Volumes help explain the urgency. The EU has been processing billions of low-value parcels a year, the overwhelming majority shipped from outside the bloc. Customs officials have struggled to screen that flow for safety and undervaluation, and European retailers have complained that the old threshold handed foreign sellers an effective price advantage.
## Part of a bigger customs reform
The duty is a down payment on the most ambitious reform of the EU Customs Union since 1968, agreed by the Council and Parliament in March 2026. That overhaul creates a new EU Customs Authority, to be based in Lille, and an EU Customs Data Hub to centralise information across all 27 member states.
The €3 charge is explicitly temporary, expected to run until 1 July 2028 while the broader system is built out.
## Key takeaways
– The de minimis duty exemption ends on 1 July 2026.
– A €3 duty applies per item type, charged to sellers, not buyers.
– It covers about 93% of e-commerce parcels via the IOSS.
– The measure is a bridge to the wider 2028 customs overhaul.
