The European Union (EU) has announced that it is scrapping Customs duty exemption on parcels valued at under €150 (c. £130).
Reportedly, it will be replaced with a new flat-rate tariff of €3 (c. £2.60) per item, thus the flat Customs duty will apply to Business to Consumer (B2C) parcels under €150 (c. £130) entering the EU.
The EU stated that ‘due to the digitalised customs environment where electronic data are available for all imported goods regardless of their value, it is no longer justified to maintain the customs duty relief for low-value consignments.’
This had previously been introduced to prevent the disproportionate administrative burden on customs authorities, businesses and private individuals but that provides a competitive advantage to certain business flows.
However, the flat fee is a temporary regime scheduled to apply until 1 July 2028, pending implementation of the future EU Customs Data Hub and broader customs reforms.
Additionally, the EU article contains anti-abuse provisions conditions that prevent operators from skirting or restructuring transactions to avoid the €3 (c. £2.60) charge.
The duty is charged per customs item/declaration line, not per unit while distance sales imported from outside the EU are the primary focus of the measure.
IOSS shipments remain subject to the new customs duty and New Product Identifier requirements will enhance customs controls and traceability.
IntraLogisteX 2027 takes place on 17-18 March 2027 at the NEC Birmingham. For exhibitor information and visitor registration, visit the official event website at www.intralogistex.co.uk
