EU de minimis removal and flat fee: What cross-border sellers must know

Author : Lily Joseph | Published On : 06 Apr 2026

The European Union is introducing a major shift in customs policy that will significantly impact cross-border e-commerce. Starting 1 July 2026, the long-standing EUR 150 de minimis threshold will effectively be replaced by a flat €3 customs duty per item on low-value imports. This change aims to address challenges such as undervaluation of goods, rising parcel volumes, and unfair competition faced by EU-based businesses.

Previously, goods valued under EUR 150 were exempt from customs duties, making it easier and more cost-effective for non-EU sellers to access European markets. However, with billions of low-value parcels entering the EU annually, authorities are now tightening controls to improve compliance and create a more balanced trading environment.

The new €3 duty will apply per item rather than per parcel, increasing costs for businesses that ship multiple products in a single order. In addition, potential handling fees and VAT obligations will further impact overall pricing and margins. This change will particularly affect industries such as fashion, electronics, and accessories, where low-value, high-volume shipments are common.

Businesses must also prepare for increased compliance requirements. Accurate HS code classification, proper VAT handling through IOSS, and efficient customs processes will become essential to avoid penalties and delays. The temporary flat fee is part of a broader transition, as the EU plans to implement a fully automated customs system by 2028, where all imports will be subject to standard tariff-based duties regardless of value.

To adapt, cross-border sellers should reassess their pricing strategies, evaluate fulfilment models such as EU-based warehousing, and invest in technology for better compliance and automation. Strategic adjustments made now can help businesses remain competitive and minimise disruption.

Overall, the removal of the de minimis threshold marks a fundamental change in EU trade regulations. Companies that proactively prepare for these updates will be better positioned to maintain profitability and sustain growth in the evolving European market.

Read the full blog:
https://www.crossbordervat.com/eu-de-minimis-removal-flat-fee-sellers-must-know/