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EU €3 customs duty on low-value parcels: what UK sellers need to know
October 7, 2026
Updated October 2026. Since 1 July 2026, parcels sent from outside the EU to consumers in the EU no longer travel duty free under €150. A €3 customs duty now applies, and a separate EU handling fee is due to follow from 1 November 2026. This guide explains what has changed for UK online sellers, what is still uncertain, and the practical steps worth taking in your despatch process.
Important: this article is general information only. StoreFeeder cannot provide customs, tax, courier or legal advice. Speak to your carrier, courier or a professional adviser about how the rules apply to your own shipments. You can read the official UK guidance on the Gov.uk EU customs reform page.
What changed on 1 July 2026
The EU removed the customs duty exemption for parcels valued at €150 or below. Goods sent by businesses outside the EU to EU consumers now attract a temporary €3 customs duty. According to the Council of the EU, the duty applies to each different item in a consignment, grouped by tariff heading, rather than once per parcel. It stays in place until the EU's permanent arrangement for low-value parcels comes into force.
In practice, the number of different tariff codes in a basket matters. A parcel containing three T-shirts with the same tariff code may attract one €3 charge, while a parcel containing a T-shirt and a pair of shoes may attract two.
What is coming on 1 November 2026: the EU handling fee
A separate EU customs handling fee on low-value parcels is due to start on 1 November 2026. It is distinct from the €3 duty, so eligible parcels may pay both. Industry reports put the fee at €2 per parcel, with the final amount and the detail of how it applies to be confirmed by the European Commission. The UK government says further information will follow, so check the Gov.uk page and your carrier's guidance before November.
What is still uncertain
Couriers and customs systems do not yet all handle the €3 duty in the same way. The main open question for sellers is whether the charge is counted per line on the CN23 customs declaration or per unique HS code in the parcel, and whether couriers combine matching lines themselves before submitting the data. Until that settles, how you present the same goods on the CN23 could change how many charges apply.
What UK sellers should do now
1. Get your HS codes and country of manufacture right
The duty is driven by tariff classification, so every product you ship to the EU needs an accurate HS code and country of manufacture. Missing or inconsistent codes can lead to extra charges, delays or returned parcels.
2. Consolidate matching customs lines
If several products in an order share the same HS code and country of manufacture, declaring them as one combined CN23 line rather than several separate lines may reduce the number of €3 charges, depending on how your courier processes the data.
3. Speak to your carrier or courier
Ask your carrier how they calculate the €3 duty, whether they consolidate matching lines, and how they will collect the November handling fee. The answer may differ between couriers and services.
4. Review pricing for EU orders
Extra duty and fees hit low-value, low-margin items and mixed baskets hardest. Review your EU pricing, delivery charges and minimum order values using your own order data and margins, and decide whether to absorb, pass on or restructure these costs.
How StoreFeeder helps
StoreFeeder stores the HS code and country of manufacture against each product and submits customs data electronically to your courier with every EU shipment. It also has an optional setting to consolidate matching customs lines: when it is switched on, products in the same order with the same HS code and country of manufacture are combined into a single CN23 line with the total quantity and value. It does not change the classification or value of any product.
The setting is live for all customers but is off by default. Turn it on under Settings > Warehouse Management > Despatch Mode > Compact Custom Declaration Lines. Read the full explanation, including worked examples, in consolidating matching HS codes on CN23 customs declarations, and check with your courier that consolidated lines suit your shipments before you switch it on.
Not using StoreFeeder yet? Book a demo to see how customs data, courier labels and EU despatch work in one system.
EU customs changes: common questions
Does the €3 EU customs duty apply per parcel or per item?
The Council of the EU describes it as applying to each different item in a consignment, grouped by tariff heading. Several units with the same tariff code may therefore attract one charge, while different products with different codes may attract one charge each. How each courier applies this in practice can vary, so confirm with your carrier.
Which parcels does the €3 duty apply to?
Parcels valued at €150 or less sent by businesses outside the EU, including the UK, to consumers in the EU. Goods above €150 continue to be charged duty at the EU's normal tariff rates.
Is the €3 duty the same as VAT?
No. Import VAT on low-value goods is still handled separately, for example through the EU's Import One-Stop Shop (IOSS). The €3 is a customs duty on top of VAT.
Is the €3 duty permanent?
No. It is a temporary measure that applies until the EU's permanent customs arrangement for low-value parcels takes effect.
What is the EU handling fee from November 2026?
A separate fee on low-value parcels entering the EU, due from 1 November 2026. It is reported to be €2 per parcel, but the final amount and rules are still to be confirmed. Keep an eye on official updates and your carrier's guidance.
Courier guidance
Your courier's own guidance is the best place to confirm how these changes affect your shipments:
This article is intended as general information only. StoreFeeder cannot provide customs, tax, courier, legal or compliance advice. Businesses should speak directly with their carriers, couriers or appropriate professional advisers for guidance based on their own circumstances.
