Adapting to EU De Minimis Changes

Today, packages with an intrinsic value below €150 sent from a third country to consumers in the European Union (EU) are exempt from customs duties under the so-called de minimis relief, although VAT and customs declaration requirements still apply.

From July 1, 2026, this €150 customs duty exemption will be 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
   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

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.

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

• Map your shipment flows: Identify all consignments ≤ €150 entering the EU — by origin, channel and IOSS/non-IOSS status.
• Classify your goods correctly: Every item needs a correct HS code for duty calculation, PID compliance and P&R checks. Start now.
• Determine B2B vs B2C vs B2B2C: Ensure declarations correctly identify transaction type — this drives clearance country, procedure and duty rate.
• Decide your duty model: Decide whether import duties and taxes will be paid at checkout (DDP – Delivery Duty Paid) or collected from customers on delivery (DAP – Delivered at Place). Update your Terms & Conditions and clearly communicate this to customers.
• Review pricing & landed costs: Add €3/item + national handling fees + VAT and customs duties into your cost modelling. Reassess return rate assumptions.
• Engage UPS Customs Brokerage: Speak with your UPS Account Manager about customs clearance and duty-payment options, including consolidated clearance and DDP solutions.