EU Customs reform 2026
What e-commerce businesses need to know
The European Union is introducing several customs changes affecting B2C e-commerce goods imported into the EU from outside the EU.
From the 1st July 2026, the €150 customs duty exemption was removed and a temporary €3 customs duty per declaration line was introduced for eligible low-value shipments.
Further changes will take effect from the 1st November 2026. These include mandatory Product Identifiers for B2C distance sales valued at €150 or less, as well as a new €2 Union Handling Fee per declaration line for qualifying B2C distance sales, regardless of the value of the goods.
Below, you can find answers to the main questions about these changes and what they mean for your shipments.
Key dates:
1st July 2026
- The customs duty exemption for relevant goods valued at €150 or less was removed.
- A temporary €3 customs duty per declaration line was introduced for eligible low-value shipments.
1st November 2026
- Product Identifiers become mandatory for B2C distance sales valued at €150 or less, including IOSS and non-IOSS movements.
- A €2 Union Handling Fee applies per declaration line to qualifying B2C distance sales, regardless of the value of the goods.
FAQ
What are Product Identifiers (PIDs)?
Product Identifiers, or PIDs, are product-level codes included in customs data. The new requirements are intended to improve product traceability and facilitate customs controls.
When will Product Identifiers (PIDs) become mandatory?
Product Identifiers will be mandatory from 1st November 2026 for B2C distance sales of goods imported into the EU and valued at €150 or less. The requirement applies to both IOSS and non-IOSS movements.
Shipments cleared on or after 1st November 2026 must include the required Product Identifiers.
Which Product Identifiers (PIDs) must be provided?
The following information must be provided for each product line:
Merchant Product Identifier, or M-PID: your unique code for identifying the product, usually its SKU.
Non-Standardised Manufacturer Product Identifier, or NS-PID: information identifying the product’s manufacturer.
Standardised Manufacturer Product Identifier, or S-PID: where available, a recognised product code such as a GTIN, EAN, UPC, ISBN or another barcode-based identifier.
What is the Union Handling Fee?
The Union Handling Fee, or UHF, is a fixed €2 fee per declaration line. It will apply from 1st November 2026 to qualifying B2C distance sales of goods imported into the European Union.
Does the €2 fee replace the €3 customs duty?
No. For qualifying goods valued at €150 or less, the €2 Union Handling Fee applies in addition to the temporary €3 customs duty per declaration line.
For goods valued above €150, the €2 Union Handling Fee still applies, but the normal customs duty applicable to the goods applies instead of the temporary €3 customs duty.
Is the Union Handling Fee refundable when goods are returned?
No. The Union Handling Fee is non-refundable, including when goods are subsequently returned or found to be faulty.
How is the €3 duty fee calculated for an order?
Based on declaration lines: same HS code = 1 line → €3 duty; different HS codes = €3/line (e.g., 2 lines → €6).
What is a “declaration line” and what does customs check?
A declaration line is a single line on the customs form, usually one product category (HS code). Each HS code adds a €3 duty charge.
Does VAT change, and who pays the €3 duty fee?
The €3 customs duty is a separate obligation to VAT. VAT has not changed and will continue to be collected as it is currently. If you are a Spring GDS customer, the new duty fee is invoiced to you in your usual Spring GDS Duty invoice.
What can merchants do to reduce duty costs?
Merchants should:
Review their product catalogue and make sure product descriptions, HS codes and countries of origin are accurate.
Prepare the Merchant PID and manufacturer information required for each product line.
Add standardised product identifiers, such as GTIN, EAN, UPC or ISBN, where available.
Review their product mix, customs data and pricing or checkout arrangements to understand the potential impact of declaration-line charges.
Clearly explain possible customs charges to customers at checkout to help prevent unexpected costs.
Review their IOSS arrangements and make sure a valid IOSS number is provided where applicable.
Follow the latest Spring GDS technical instructions for their shipping platform or integration.
What is Spring GDS doing to support merchants through the new EU rules?
Spring GDS supports merchants in complying with the new customs requirements and managing shipments under the updated rules. As the regulatory landscape evolves, we will continue to monitor market developments and assess opportunities to further support our customers where possible.
How does Spring GDS support changes with DAP?
For DAP flows, the €3 duty (and VAT) will be charged to the end consumer by the destination postal operator. In these cases, posts may also apply their own local handling fees, depending on the country.
When do H7 vs H1 clearance routes apply?
Low‑value B2C shipments (≤ €150) can use H7 if they meet the H7 rules. From 1st July 2026, the €3 duty only applies to these eligible H7 shipments. Shipments above €150, shipments that do not qualify for H7, or those containing restricted goods must use H1 clearance, where standard duty rules apply based on the product, origin, and value.
Is there any additional consideration for restricted goods?
If a shipment contains restricted goods (as defined by EU customs), the entire parcel will be routed via H1 clearance, even if other items in the shipment are non‑restricted. This has cost and data implications that merchants should understand upfront.
Are the duties paid through an IOSS VAT return?
IOSS only relates to VAT, not duties. The presence or absence of an IOSS number does not remove customs duty, and customs duty is not remitted through the IOSS VAT return. The temporary €3 measure is a customs duty within the customs framework and must not be confused with the separately discussed EU handling fee.
How will the change impact my checkout and shipping costs for end consumers?
Once the exemption is removed on 1st July 2026, duty is unavoidable. Merchants must decide how to absorb or pass on the cost (e.g. pricing, shipping fees, or checkout logic). There is no post‑delivery recovery mechanism if duty is not collected upfront.
What does not change on 1st July?
Compliance requirements, HS accuracy, and the legal customs framework remain in place. There are no carrier or postal workarounds to avoid duty once the exemption is removed.
Do shipments from the UK qualify for a preferential duty rate?
Preferential origin does not remove or reduce the €3 duty and the €2 Union handling fee. Free Trade Agreements do not apply in this context.
