From 1 July 2026, the EU will implement significant reforms as part of its broader customs framework—fundamentally changing how low-value imports (≤ €150) are treated at the border.
What’s Changing?
The new rules introduce several key updates:
- Removal of the €150 duty-free threshold
All goods entering the EU will now be subject to customs duties, regardless of value. - €3.00 duty per item under IOSS
For consignments under €150 shipped using the Import One Stop Shop (IOSS), a flat €3.00 customs duty per item will apply. - Standard duties for non-IOSS shipments
Shipments not using IOSS will be subject to standard customs duties based on tariff classification. - VAT remains unchanged
All goods imported into the EU will continue to attract VAT, consistent with the 2021 reforms. - Mandatory product identifiers
New requirements are expected to improve traceability and compliance, increasing the level of data required at lodgement. - Potential additional handling fee
The European Commission is considering introducing an EU-wide handling fee for low-value imports, potentially later in 2026.
What Does This Mean for Your Business?
These changes represent a significant shift and will impact importers, exporters, and eCommerce businesses alike:
Increased costs
The removal of the duty exemption will raise landed costs for low-value shipments into the EU.
Greater reliance on IOSS
Businesses shipping into Europe may need to consider IOSS registration to better manage duty and VAT obligations while streamlining customs clearance.
Higher data and compliance requirements
The introduction of product identifiers will require more detailed and accurate shipment data upfront.
Increased processing complexity
More shipments will require full customs clearance, adding administrative workload for freight forwarders and customs brokers.
eCommerce model adjustments
Online sellers may need to review pricing strategies, checkout experiences, and delivery terms to accommodate the new duty structure.
Countries Affected
These changes apply to all member states of the European Union, including:
- Austria
- Belgium
- Bulgaria
- Croatia
- Cyprus
- Czechia
- Denmark
- Estonia
- Finland
- France
- Germany
- Greece
- Hungary
- Ireland
- Italy
- Latvia
- Lithuania
- Luxembourg
- Malta
- Netherlands
- Poland
- Portugal
- Romania
- Slovakia
- Slovenia
- Spain
- Sweden
What Happens Next?
We have reached out to Australia Post regarding how they plan to respond to these changes.
At this stage, their International team has confirmed they are aware of the upcoming reforms and will provide further guidance closer to the implementation date.
Stay Informed
We will continue to monitor developments and provide updates as more information becomes available, particularly around operational solutions and any additional fees introduced by EU authorities or carriers.
If you have questions about how this may impact your shipments or supply chain, feel free to reach out to our team sales@sccargo.com.au