Overview

The European Union will abolish the €150 customs‑duty exemption for low‑value imports, with transitional rules slated to start in 2026. From that point forward, every parcel entering the EU from a non‑EU country will be subject to duty, regardless of its price. Amazon sellers who ship to EU marketplaces or source products from outside the bloc must adjust pricing, logistics and compliance processes to avoid unexpected cost spikes.

Key Points

• Duty‑free ceiling removed — Items valued under €150 will no longer enter the EU duty‑free; a 5 % duty on a €120 smartwatch, for example, will now be payable.
• 2026 rollout schedule — The EU will introduce a phased transition beginning in 2026, giving sellers roughly two years to re‑engineer their supply chains.
• Universal customs declaration — Every shipment, even a single‑item order of a €30 accessory, must carry a full customs entry and a corresponding duty payment.
• VAT regime unchanged — The 2021 removal of the €22 VAT exemption via the IOSS system remains separate; sellers will still remit VAT through IOSS but now also face duty on the same low‑value goods.
• Higher landed cost for samples — A UK‑based private‑label seller ordering three prototype units from China at €45 each will see an added duty of €2‑3 per unit, raising the total sample cost by more than 5 %.

How the New Duty Structure Works

1. Customs value assessment — The customs authority evaluates the declared transaction value of the parcel.
   • Example: A seller lists a €90 kitchen gadget; customs records €90 as the taxable base.
2. Duty rate application — The appropriate tariff rate from the EU Combined Nomenclature is applied to the assessed value.
   • Example: The gadget falls under a 4 % duty line, resulting in a €3.60 duty charge.
3. Mandatory declaration filing — The shipper submits an electronic entry (e.g., via the EU’s DELTA system) for every parcel, regardless of size.