Countdown to the EU's New Policy on Low-Value Small Parcels: €3 Customs Duty + Handling Fee. What Should Cross-Border E-commerce Businesses Prepare?
12/13/20252 min read
For the past few years, direct mailing of small parcels under €150 has been a "cost advantage" (or "cost low ground") for cross-border e-commerce businesses entering the EU market. However, this window is being systematically closed.
As the EU Customs Reform enters the practical implementation phase, a system of regulation and fees specifically targeting low-value e-commerce small parcels has largely taken shape and will officially land on July 1, 2026.
This is not "a single fee adjustment" but a structural change at the business model level.
I. What exactly is the EU changing?
1️⃣ Fixed €3 Customs Duty
Applicable to: E-commerce parcels from outside the EU with a declared value under €150.
Core Rule: Charged per tariff heading (customs product category). A parcel containing multiple different tariff headings → may incur the charge multiple times.
Effective Date: July 1, 2026.
2️⃣ Handling Fee
Nature: Not a Customs Duty, not VAT, but a Customs Regulatory Handling Fee.
Policy Objective: To cover the costs of data processing, risk analysis, and compliance brought about by the massive volume of low-value parcels.
Responsible Party: Primarily directed at platforms or sellers, rather than consumers.
Relation to Customs Duty: May be stacked, not a replacement.
3️⃣ VAT Still Exists, but is No Longer the Only Cost
IOSS can still be used for VAT.
However: It cannot bypass the €3 Customs Duty; It cannot bypass the Handling Fee.
👉 The future "Landed Cost Formula" will become: Customs Duty + VAT + Handling Fee.
II. Does this reform only target "low-value small parcels"?
Yes, and this is very clear.
From the European Commission's initial proposal of the customs reform in February 2025, through the Council's negotiation mandate in June, the political agreement in November, and the final decision at the Finance Ministers' level in December, all documents have repeatedly focused on the same scenario: e-commerce small parcels from third countries that are surging in volume, low in value, but extremely high in regulatory cost.
This is not a "universal increase in stringency" for all imported goods, but a tailor-made institutional response for the low-value e-commerce model.
III. What should businesses do now?
Based on the current policy certainty, businesses can simultaneously move forward in four directions:
✅ 1. Customs Code (HS / tariff heading) Inventory
Clarify: How "different tariff headings" are determined (first two digits / first four digits / full code).
Inventory the existing product structure to identify: Which SKUs will be considered different tariff headings.
System Level: Reduce combined orders across categories or clearly define split-order logic on the front end.
✅ 2. Repricing and Promotion Strategy Recalculation
Incorporate into the pricing model: The €3 Customs Duty; and the highly likely introduced Handling Fee.
Re-evaluate: Whether low-priced SKUs are still suitable for the EU market; The sustainability of "free shipping" and "low-price popular items."
✅ 3. Overseas Warehouse and Regional Fulfillment Assessment
EU warehouses can avoid: Import duties; Handling fees; Customs clearance uncertainty.
Simultaneously evaluate: The feasibility of the BBC (Business-to-Business-to-Consumer) model; Logistics costs and timeliness performance.
✅ 4. Key Country-Level Monitoring
France, Germany, and Belgium are expected to have the strictest enforcement.
France has consistently taken a proactive stance on the "Handling Fee" issue.
Recommendation: Prioritize testing customs clearance performance in these countries and dynamically adjust strategies.
The signal transmitted by this round of EU reform is very clear:
Low value ≠ Low cost, and low-cost direct mail is no longer a mode of systemic benefit.
The sooner it is incorporated into decision-making as a certainty, the easier it will be to gain the initiative in the next stage of competition.