The exemption was originally introduced to avoid disproportionate administrative burdens for Customs authorities, businesses, and private individuals. However, the EU now considers the measure unjustified because Customs digitalisation and improved cross-border electronic data have changed how low-value imports are managed.

The removal of the measure is also intended to redress the competitive imbalance between e-commerce traders and traditional retailers. It also reflects concern over lost revenue linked to almost 5.9 billion low-value imports into the EU in 2025.

The charge applies to imported goods that fall under the ‘distance sale’ definition and where the consignment value is up to €150.

This flat fee per line item is in place until 1 July 2028, after which normal duty and tax rates are expected to apply.

Important Notes:

Two separate measures are relevant. Both target businesses rather than consumers, although the cost may still influence prices or fulfilment models. For clarity:

• The €3 temporary Customs duty has applied since 1 July 2026 and is a fixed duty applied per line item on consignments valued up to €150.
  
  This applies until 1 July 2028. The EU Customs Data Hub for e-commerce, established to standardise, automate, and streamline Customs processes, is expected to be operational from that time.

• A proposed Union Handling Fee is also expected in autumn 2026.  This is intended as a fee rather than a Customs duty and is designed to cover Customs processing costs.

Notes for Northern Ireland

This new measure will affect goods declared At Risk of diversion to the EU where the movement is considered a Distance Sale under EU regulations.

• Goods moved consumer to consumer will continue to move as Not At Risk. 
• Goods moved Not At Risk from business to consumer can make use of the UK Carrier Scheme, if eligible.
• Goods moved Not At Risk from business to business can make use of UKIMS, if eligible.

EU guidance is available here: Guidance and legal text on temporary flat fee on low-value imports which will apply until 1 July 2028 - Taxation and Customs Union

The definition of Distance Sale can be found in Directive 2002/65/EC of the European Parliament and of the Council of 23 September 2002 at the link below:

eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32002L0065