EU Removes €150 Customs Duty Exemption Threshold from 2026: What UK Ecommerce Sellers Need to Know

A major change in EU cross-border ecommerce is coming in 2026: the removal of the €150 customs duty exemption threshold. 

This change was agreed by EU member states at the ECOFIN meeting in November 2025 and is designed to level the playing field between EU retailers and international sellers, reduce fraud, and modernise customs processes.

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What’s Changing & When?

Today, parcels valued under €150 entering the EU aren’t subject to customs duties, a rule originally introduced to speed up border clearance. However, with EuroCommerce calling for reforms to the EU’s customs system, the EU is now moving to revise its customs duties framework and remove this exemption.

From 2026, all parcels entering the EU will be subject to customs duties, regardless of value. This is a significant change for UK ecommerce sellers shipping to EU customers, and may mean new compliance requirements, additional costs, and potential updates to pricing, fulfilment, and customer communication.

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Why Is the EU Removing the €150 Threshold?

The EU cites several problems driving the reform:

• Widespread undervaluation fraud: An estimated 65% of small parcels are declared below €150 to avoid duties, distorting trade and reducing tax revenue.
• Environmental impact: Some sellers split shipments into multiple parcels to stay below the threshold, increasing packaging waste and carbon emissions.
• Unfair competition: EU-based retailers face price pressure from under-declared imports, making it harder to compete on a level playing field.

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How Will This Affect UK Sellers?

While the EU has not yet released the full duty model for low-value parcels, UK sellers could expect to see:

• Customs duties on all EU-bound orders, even small, low-cost items.
• More stringent customs data requirements, particularly around product descriptions, HS codes, and valuations.
• Additional handling fees depending on how individual carriers and postal operators respond.

More clarity will come once the EU announces the temporary 2026 framework and outlines its long-term digital duty calculation system.

What to Expect Next

2026: Temporary Measures

Before the full system is ready, the EU will introduce a temporary solution aimed at reducing fraud and easing the transition.

Details are still pending, but possible scenarios include:

• A flat duty rate for low-value parcels
• A simplified per-parcel customs charge
• Mandatory pre-collection of duties 

Member states have agreed to implement these measures as early as possible in 2026.

2028: EU Customs Data Hub

By 2028, the EU plans to launch the Customs Data Hub, a central digital platform to calculate, manage, and track customs duties for ecommerce shipments.

This is part of a broader EU Customs Reform designed to modernise and automate import processes.

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How UK Sellers Can Prepare Now

Even without full details, there are important steps you can take to prepare:

1. Prepare to capture complete customs data for every EU order

Accurate HS codes, product descriptions, and values will be essential to avoid delays and penalties.

2. Update your workflows for duty-paying low-value parcels

Assume all shipments will soon require duties and ensure your pricing and fulfilment processes reflect this.

3. Automate customs processes where possible

Shipping software like Zenstores can help you streamline customs documentation, reduce errors, and prepare for duty calculation changes.

4. Stay close to EU announcements

Regulatory updates are expected early in 2026. Acting early will help prevent last-minute disruptions during the transition.

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Stay Ahead of EU Customs Changes with Zenstores

With the removal of the €150 duty exemption coming in 2026, now is the time for UK ecommerce businesses to strengthen their cross-border shipping workflows.

Zenstores helps you stay ahead of regulatory changes by simplifying the parts of shipping that matter most – from accurate customs data to automated workflows that keep your fulfilment running smoothly.

Here’s how Zenstores supports your business through the transition:

• Accurate customs documentation: Generate and send essential customs data automatically for every EU-bound order.
• Automation built for compliance: Use shipping rules to ensure the right services, declarations and data are applied without manual work.
• Faster, error-free dispatch: Print labels and documents in seconds and keep your fulfilment team moving, even as customs requirements become more complex.
  

Ready to prepare for 2026? Start your free Zenstores trial today and get your customs workflows ready for the biggest EU ecommerce change in years.

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Further reading:

European Commission Taxation and Customs Union: 150 EUR customs duty exemption threshold to be removed as of 2026

European Commission Taxation and Customs Union: EU Customs Reform

European Council: Economic and Financial Affairs Council Meeting 13 November 2025