EU applies €3 customs fee to low

The policy, which takes effect from today (1 July), replaces the previous exemption from customs duties for such goods and remains in force until 30 June 2028. After that date, regular customs duties corresponding to the specific type of product will be reinstated. Discover B2B Marketing That Performs Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms. The change forms part of the EU’s ongoing Customs Reform agenda, which seeks to update customs procedures in response to the rapid growth of e-commerce. The European Council stated that the reforms aim to maintain fairness, safety, and environmental compliance within the internal market, especially as cross-border online shopping sees continued expansion. The original duty-free threshold, known as the de minimis exemption, was designed to ease administrative pressures for customs authorities, businesses, and individuals. However, EU authorities now argue that increased digitalisation provides robust electronic data for all imports, making a blanket exemption unnecessary. Additionally, this exemption no longer aligns with current market realities, with an estimated 5.9bn such low-value items entered the EU from outside countries without being subject to customs duty in 2025. During inspections conducted across all 27 EU member states in 2025, more than 60% of examined products did not meet EU standards. The inspections identified failures such as missing labels, unauthorised ingredients, or insufficient safety documentation. The Council said: “Products on the EU market have to comply with high standards, to protect citizens from dangerous goods and to remove goods that do not meet environmental and labour standards. If goods coming from third countries do not respect those standards, this generates unfair competition for legitimate EU business.” Through the new duty, the EU intends to standardise border measures so that all parties, whether bulk importers or individual buyers, pay customs charges and comply with EU regulations. In addition to the customs fee, further traceability measures will soon apply. Product identifier (PID) requirements become compulsory on 1 November 2026, though operators can provide this information voluntarily from 1 July 2026. Authorities believe this move will help customs officials intercept potentially unsafe or non-compliant imports more effectively. Commissioner Maroš Šefčovič said: “This reform ensures fairness for all businesses operating within the EU market while keeping customs procedures simple for consumers. By introducing a small duty and stronger product traceability, we are closing loopholes that allowed unsafe and non-compliant goods to enter our market too easily. This is a key step in the modernisation of our Customs Union and towards a fully digital, agile and coordinated EU customs system fit for the challenges of our times.” In preparation for the new customs charge, Shein has expanded its warehouse capacity in Wroclaw, Poland, which The Guardian reports may help the company reduce its exposure to the tax. The company has also opened pop-up stores in Hungary and, last year, attempted to establish its first permanent store in Paris, which closed following public backlash. Reuters has indicated that the €3 duty is likely to result in higher prices for consumers, as online platforms are expected to pass on at least some of the additional costs. AliExpress, owned by Alibaba, said it will label relevant product listings with “Price includes duties and VAT.” For other items, customers will be shown a breakdown of import charges before finalising their purchase, the report said. Amazon also stated that 97% of its EU shipments last year were fulfilled from within the bloc. For products sent from outside the EU, Amazon said customers would see import charges disclosed before checkout. Commenting on the news, GlobalData analyst Sharon Iles explained to Just Style the tax is significant in percentage terms for ultra-cheap retailers such as SHEIN and Temu. “On a €3-5 item it can double the landed cost, far outweighing its impact on higher-ticket goods. SHEIN and Temu have already invested in EU warehousing and are racing to shift more inventory into “local warehouse” listings to sidestep the fee. “In the future, ultra-cheap retailers will accelerate EU warehouse and last-mile delivery investment. This reduces duty exposure but raises their cost base, pushing prices up and narrowing some of their extreme-discount positioning. “For traditional European retailers like H&M, Primark, and Zara, that narrower gap could win back price-sensitive shoppers who value trusted quality, easy returns, in-store try-on, and immediate availability.”