EU Introduces Temporary Duty on Low-Value Shipments: What It Means for E-Commerce

On 12 December 2025, the Council of the EU and the European Commission published official announcements introducing an important change to the treatment of low-value e-commerce shipments.

The Council agreed to introduce a temporary duty of EUR 3 per item for consignments valued below EUR 150 entering the European Union. The measure will apply from 1 July 2026 to goods shipped directly to end consumers from third countries.

Why is this measure being introduced?

The decision responds to several growing concerns:

• unfair competition affecting EU businesses
• higher risks of customs and VAT fraud
• consumer-safety concerns
• a significant increase in the administrative and operational burden on customs authorities because of the growth of small e-commerce shipments

Which shipments will be subject to the duty?

The EUR 3 duty will mainly apply to goods imported by sellers outside the EU that are registered in the IOSS (Import One-Stop Shop) system for VAT purposes. These shipments account for the largest share of e-commerce imports into the EU.

The European Commission will regularly assess the effect of the measure, including whether it should also be extended to traders that are not registered in IOSS.

A temporary solution ahead of a broader reform

Both the Council and the Commission emphasise that this is a temporary measure. It will remain in place until a permanent solution is adopted that fully removes the EUR 150 duty-exemption threshold. After that, all shipments will be subject to customs duty under the EU’s standard tariff rules regardless of value.

What is this duty not?

It is important to distinguish the temporary duty from the proposed e-commerce “handling fee”.

• The duty is intended to address distortions in competition.
• The handling fee is intended to compensate customs authorities for the rising cost of controlling very large volumes of shipments.

The handling fee remains under discussion between the Council of the EU and the European Parliament as part of the broader customs reform.