Summary
Summary
The EU Commission recently published Explanatory Guidance on the customs duty levy for low-value imports, outlining changes to the UCC Delegated and Implementing Acts.
The EU Commission published only on June 2, 2026, Explanatory Guidance on how the customs duty levy for low-value imports should be processed by all impacted stakeholders. The amended UCC Delegated Act and Implementing Act were published in the Official Journal of the EU on June 8, 2026.
The Commission’s Explanatory Guidance explains in detail all the changes that have been made with the amendments of the previously(and currently still) applicable implementing regulations that regulate the framework of customs duties established for the imports of low-value goods.
Amendments to the UCC Delegated and Implementing Acts. The Union Customs Code Delegated and Implementing Acts were amended to ensure the practical implementation of the temporary EUR 3 customs duty:
The Guidance provides well-needed explanations, with practical examples, on the application of the EUR 3 temporary customs duty fee(flat fee) that is levied on the low-value goods, imported in consignments with an intrinsic value that is below EUR 150.
Background
From July 1, 2026, the temporary EUR 3 customs fee(flat fee) per item shall be levied on all consignments that meet any of the following conditions:
- The importation of the goods is exempted from the payment of VAT in accordance with Article 143(1), point (ca), of Directive No 2006/112/EC. This refers to the goods sold via the import one-stop shop (IOSS) scheme.
- The goods are in a postal consignment as defined in Article 1, point (24), of Delegated Regulation (EU) 2015/2446 (UCC-DA).
The flat fee is of a temporary nature; it should be levied from July 1, 2026, and it should be applied until June 30, 2028. This is the expected framework, depending mainly on the development of the Central IT Customs Hub, under which the rules and regulations of the new customs framework should be managed.
Customs Duty Levy for Low-Value Imports
Framework
The scope of consignments that are covered by the customs duty levy is very wide. The declarant should collect a flat fee levy on all the items that are part of the distance sales, where the commercial consignments are below the threshold of EUR 150.
The customs duty is imposed on all distance sales that meet the low-value imports concept defined in accordance with the EU VAT Directive and the Customs Regulations. The declarant(registered under IOSS, special postal arrangements, or national VAT regime) is obliged to charge and collect temporary customs duty.
The temporary customs duty is calculated per item(product type identified under the applicable tariff code classification), no matter the quantity of the products within the same tariff code.
The duty should be collected and paid by the declarant. The declarant could be one of the following:
- E-commerce vendor or its indirect representative
- Marketplace facilitator or his indirect representative
- Postal operators or Carrier
- Customer
There are exceptions to the temporary customs duty:
- For B2B VAT-registered recipients, standard duty rates will be applied.
- For free trade agreement shipments not sold under the IOSS scheme, duty relief can be applied. However, for free trade agreement shipments sold under the IOSS scheme, the temporary customs duty shall apply per item under the H7 declaration.
- The VAT rules for imports into the EU remain unchanged, and there are no de-minimis thresholds.
The hierarchical approach is used for proper identification of the declarant for temporary customs duty. The IOSS holder is the first declarant to be considered. The user of the Special Arrangements(postal operators or carriers) becomes a declarant only in the absence of the IOSS holder.
Both the IOSS ID holder and economic operators that make imports under Special Arrangements can delegate this responsibility to indirect representatives.
When it comes to the IOSS imports, the simplified customs declaration(H7 form) is used to submit the import declaration. This form is a foundation for faster clearance of the goods. Most of the imports of LVG could be declared under the H7 import procedure; for some imports, a regular H1 declaration needs to be lodged.
The H7 is a simplified customs declaration used for low-value goods imported under IOSS or special arrangements. It allows faster customs clearance and remains central to the new levy system.
New Requirements
Product identifiers
The new customs duty framework put on declarants additional administrative requirements. From November 1, 2026, declarants should include in the customs declarations under this regime, also additional product identifiers(PIDs), to the respective customs authorities. It covers B2C direct distant sales. This requirement doesn’t apply to B2B VAT-registered imports.
Product identifiers are a set of codes used by manufacturers, sellers, marketplace operators, and digital platforms to specifically identify their tangible products. The necessary to be used PIDs are the merchant product identifier (M-PID), the non-standardized manufacturer product identifier (NS-PID), and, where available, the standardized product identifier (S-PID).
- Merchant Product Identifier – the merchant’s unique code to identify goods
- Non-standardised Manufacturer Product Identifier – a manufacturer or product supplier’s unique code, assigned to an individual product
- Standardised Manufacturer Product Identifier (only if it exists) – assigned by a global industry standard body with a bar code when the manufacturer’s product meets global standards from a governing body.
EU Handling Fee
The EU Commission has also proposed the introduction of the new EU-wide handling fee on low-value imports, expected to be introduced by November 1, 2026. This is a different type of fee, which most probably will be an additional fee to be paid by the declarant. Its value, reporting, and remitting parts are still pending.
If introduced, this fee is of a different nature. It’s not a customs duty, but a fee that the responsible declarant should collect and pay as a way to “reimburse” the operational costs that EU customs bears for processing of low-value imports.
Takeaway
The temporary flat fee of EUR 3 customs duty applies to most of the consignments imported under the IOSS regime, Special Arrangement, or regular VAT regimes. The principal focus is on the imports of low-value goods, direct distance sales to customers residing in the EU.
Author: Aleksandar Delic
This is a major customs reform, and it has an impact on almost all parts of the B2C distance sales of low-value goods. The vast array of stakeholders is impacted, as it starts with the principal declarants of the levy – e-commerce vendors, e-commerce marketplace facilitators(or delegated indirect representatives); and goes on to – postal operators, delivery operators, indirect representatives; and consumers in the end
Indirect Tax Manager – E-Commerce
Frequently Asked Questions
From July 1, 2026, the EU introduces a temporary EUR 3 flat customs duty levy on certain low-value consignments (below EUR 150). This measure applies mainly to goods imported under the Import One Stop Shop (IOSS) or through postal consignments.
The levy aims to address the growing volume of low-value imports entering the EU, reduce customs processing burdens, improve enforcement, and help cover operational costs until the Central EU Customs Data Hub becomes fully operational.
The temporary customs duty levy becomes effective on July 1, 2026, and is expected to remain in place until June 30, 2028, subject to the rollout of the central customs IT infrastructure.
The levy applies to:
Low-value imports with an intrinsic value below EUR 150
Goods imported under IOSS
Postal consignments under EU customs rules
B2C distance sales into the EU
The fee applies per product category (tariff classification), not per unit. This means multiple units under the same tariff code may trigger only one EUR 3 fee, but multiple product categories in one parcel can trigger multiple fees.
The declarant is responsible. This may include:
E-commerce sellers
Marketplace facilitators
Postal operators
Carriers
Customers
Indirect representatives
No. The VAT treatment remains unchanged. The levy is separate from import VAT and does not affect existing VAT obligations under the EU VAT Directive.
The H7 is a simplified customs declaration used for low-value goods imported under IOSS or special arrangements. It allows faster customs clearance and remains central to the new levy system.
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