The exemption measure was originally introduced to avoid disproportionate administrative burdens for Customs authorities, businesses, and private individuals.  However, the EU now considers the measure unjustified given effective Customs digitalisation and the accuracy of cross-border electronic data. 

The removal of the measure is also intended to redress the imbalance of competition between e-commerce traders and traditional retailers. There is also a nod to missing revenues from almost 5.9 billion euros in low-value imports made into the EU in 2025. 



With the 1 July 2026 implementation date now passed, the duty exemption for low-value imports has been removed and replaced by a temporary €3 customs duty per line item for goods imported into the EU under the €150 consignment value.

The charge now applies to imported goods that fall under the ‘distance sale’ definition.

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 imposed on businesses rather than consumers. For clarity:

• The €3 temporary Customs duty has applied from 1 July 2026 and is a fixed duty applied per line item on consignments with a value 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

The introduction of this new measure will impact goods declared At Risk of diversion to the EU where the movement can be considered a Distance Sale in EU regulations.

• Goods moved Consumer to Consumer will continue to move as Not At Risk. 
• Goods moved Not At Risk - Business to Consumer can make use of the UK Carrier Scheme if eligible to do so
• Goods moved Not At Risk - Business to Business can make use of UKIMS if eligible to do so

A link to the EU guidance can be found at the following link: 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