Businesses exporting to the EU only have a few months to prepare for the new customs duty charge.
From 1 July 2026, a new €3 customs duty will apply to parcels valued under €150 entering the EU and if you are shipping high volumes, it can quickly add up and eat into already tight margins.
Now is the time to assess who will cover these additional costs and how it will impact your profits.
What is the new customs duty charge?
The new €3 duty is being introduced to close a loophole that has previously allowed non-EU sellers to benefit from duty-free imports and undercut EU-based competitors.
The duty will apply per item type within a parcel and your costs could be higher than expected if you ship bundles or mixed products.
It will be collected through the Import One-Stop Shop (IOSS) and this allows you to collect duties and VAT upfront and avoid delays at the border.
What should your business be doing to prepare?
We know that businesses’ margins are already being stretched and you may be uncertain whether to pass on the costs to customers or change how your products are packaged and shipped altogether.
This is where your business needs to calculate the costs of the duty on your shipping and profits and model the potential cost impact on your margins.
You should then review your pricing strategy and choose whether to absorb the costs in the short term or adjust pricing.
Don’t forget to keep your customers in the loop about any pricing changes or delivery expectations.
How can we help you manage the costs?
The rising costs and reforms exporters have been facing may feel never-ending, but we can help you keep on top of deadlines and stay compliant.
Our team can model the impact of the new duty and assess how this will affect your margins and profitability.
Let us focus on the finances and create an action plan so you can ensure your operations run smoothly.
If you need further advice on managing the EU customs duty charge, contact us today.