Adapting to EU De Minimis Changes

Until July 1, 2026, parcels with an intrinsic value below €150 shipped from a third country to consumers in the European Union (EU) benefited from a customs duty exemption under the so-called de minimis relief, although VAT and customs declaration requirements still applied.

As of July 1, 2026, this €150 customs duty exemption has been removed.

Why EU Customs Rules are Changing

With the growth of e-commerce, the €150 de minimis exemption is increasingly seen as no longer justified, as it can create unfair competition. The removal of the threshold is intended to reduce differences in treatment between e-commerce (direct imports of individual parcels up to €150) and traditional retail (imports of goods in bulk).

What’s Changing for Your Shipments

1. The €150 duty exemption will end
   Low-value B2C shipments valued at €150 or below will be subject to a fixed customs duty charge of €3 per line item, whether shipped under IOSS or non-IOSS models. Low-value B2B shipments valued at €150 or below may be subject to ad valorem duty.
2. Business or consumer shipment status must be identified
   For each shipment, shippers must indicate whether the sender and receiver are businesses or private individuals.
3. Each package will require its own customs declaration
   All B2C shipments valued at €150 or below will need individual customs declarations, regardless of whether IOSS is used.
4. Non-IOSS shipments must clear customs in the destination country
   For non-IOSS B2C shipments, customs clearance will need to take place in the EU country where the customer receives the goods.
5. Additional product information will be required
   From November 1, three product identifiers per item will be required for B2C shipments valued at €150 or below — Merchant Product ID, Manufacturer Product ID, and where available, a Standardised Product ID.
6. Returned B2C goods may no longer qualify for automatic duty refunds
   Businesses with high return volumes, such as fashion, footwear and electronic retailers, may need to review their return policies and checkout processes ahead of implementation.

What This Means for Shippers

• Customs documentation is required for every shipment and must be complete and accurate. To ensure your goods are processed correctly through customs and that the right duties are applied, it is also important that you clearly state the nature of the sales transaction when submitting your customs declaration.

  • B2B: Business ➝ Business
  • B2C: Business ➝ Individual customer
  • C2C: Individual ➝ Individual customer

• Product identifiers required for B2C shipments: Each item in a B2C shipment must include the following product details. Find more here: “De Minimis Removal 2026: Understanding Product Identifiers”

• Higher import costs

Product Identifiers (PIDs): The Three Types You Must Provide from November 1

Merchant Product Identifier
Obligation: Always Required
Definition: The seller's or platform's own product reference — SKU, listing ID, ASIN or similar. Required for all distance sales ≤ EUR 150 where no standardised identifier exists for the item.

Manufacturer Product Identifier
Obligation: Always Required
Definition: The manufacturer's own product reference that does not conform to an internationally recognised standard (e.g., a proprietary model code). Supplements the merchant identifier.

Standardised Product Identifier
Obligation: Required where it exists for the item
Definition: GTIN, EAN, UPC or an equivalent internationally recognised standard. This is the highest-priority identifier and replaces lower-tier identifiers for customs risk profiling and product compliance purposes.

Which products are exempt from the Product Identifier requirements?

• Unprocessed agricultural and perishable goods
• Handmade and artisan goods
• Antiques, collectibles, art, stamps, and coins

The product categories listed above are subject to an administrative tolerance. These goods do not typically have manufacturer or merchant product identifiers. This includes unprocessed agricultural goods covered by Chapters 1-15, handmade and artisan goods classified under the applicable tariff codes, and antiques, artwork, stamps, and coins classified under Chapter 97. For these products, Customs will consider the Product Identifier requirement met when the Merchant Product ID and Manufacturer Product ID fields are provided in the respective data fields.

What this means for your shipping data: If your products qualify for an administrative tolerance, you do not need to provide Product Identifier (PID) values. Instead, indicate the exemption using the Commodity Category Exemption Indicator and ensure the correct product classification is included in your shipment data.

You are responsible for determining whether your products require PIDs or qualify for an administrative tolerance category. If PID information is provided for an exempt product, it will still be accepted and is not expected to generate validation errors.

Healthcare Rules and Goods Without a General Exception

For healthcare products, the required identifier may vary depending on the type of product:

• Medical devices: The appropriate standardised identifier depends on the applicable UDI-DI requirements.
• For legacy devices, a regulatory reference may be used where permitted under the current guidance and within the specified conditions and timeframe.
• Medicines: The applicable product code included in the GS1 DataMatrix may be used where permitted under the current guidance.

Not Excepted — Full PID Required

Other cases receive no privileged treatment:

• Second-hand and refurbished goods → the PID of the original product
• Personalised textiles (individual logo or name) → the PID of the underlying textile
• Custom, made-to-order and print-on-demand goods → the PID of the underlying good or service in the offer
• Generic and unbranded products are not excepted either: the merchant assigns the M-PID, the manufacturer assigns an NS-PID, and Y081 covers the missing barcode.

What happens if I do not provide the Product Identifiers when required?

From October 25, 2026, Merchant PID and Manufacturer PID will be required for non-exempt products. If PID information is missing, the shipment may fail validation and not be processed. Please review your validation logic.

PID requirements apply at the individual product level (commodity invoice-line level). If your shipment contains multiple products, some may require PID information while others may be exempt.

How You Can Prepare

• Provide accurate shipment data: Include the EU buyer’s EORI/VAT number, detailed product descriptions, HS codes, item values and country of origin.
• Submit complete and accurate shipment data: Ensure HS codes, declared values and full line-by-line shipment details are correct and complete.
• Review pricing strategies to account for duties and additional costs.
• Anticipate potential changes in clearance and delivery timing.
• Be ready for customs clearance: Align with your UPS contact on customs processes. Line item driven customs declarations will be required for every shipment eligible.
• Support on-time delivery: Providing complete and accurate information helps speed up customs processing and reduce delays.

UPS can help you navigate these changes with expert support and practical solutions designed to keep your shipments moving smoothly.

At a Glance: Key Differences for B2B and B2C Shipments

• Identify impacted products: Review your product catalogue and identify items shipped to EU consumers that will require Product Identifier (PID) data.
• Collect the required Product Identifiers: Ensure you can provide a Merchant Product ID and Manufacturer Product ID for every product, as well as a Standardised Product ID where one exists.
• Review your product data sources: Confirm that Product Identifiers can be sourced consistently from your product catalogues, suppliers, manufacturers and marketplace platforms.
• Validate product data quality: Check that Product Identifier data is complete, accurate and associated with the correct product records. Missing or inaccurate data could lead to customs delays or holds.
• Update systems and integrations: Ensure your e-commerce, ERP, marketplace and shipping systems can capture and transmit the required Product Identifier data at item level.
• Test before implementation: Verify that Product Identifier data flows successfully through your ordering, fulfilment and shipping processes ahead of the new requirements taking effect.
• Talk to UPS Customs Brokerage: Contact your UPS Account Manager to understand the new requirements and explore solutions to help support compliant customs clearance into the EU.