New EU customs costs: what independent retailers have to know

New EU customs rules mean UK independent retailers selling to customers in the EU face a €3 duty on each product category in parcels valued below €150. The change, introduced on 1 July 2026, could mean mixed orders attract multiple €3 charges, adding to the cost and complexity of cross-border sales.

UK retailers selling goods directly to customers in the EU are facing new customs costs following the removal of the €150 duty exemption for low-value parcels from 1 July 2026.

The change means that goods valued at €150 or less entering the EU from the UK can now attract a €3 customs duty, with the charge applying by product category rather than simply once per parcel, creating additional costs and complexity for independent retailers selling online to EU customers.

How the new duty works

The previous exemption meant parcels containing goods worth up to €150 could enter the EU without customs duty, but this has now been removed.

Under the new arrangements, a €3 duty applies to each distinct product category within a qualifying parcel, meaning a mixed order can attract several charges.

For example, a parcel containing three different product categories could attract €9 in customs duty, even if the combined value of the goods is €150 or less.

This means a retailer selling an EU customer a skirt, a watch and a purse in one parcel could potentially face €9 in duty if the three products fall into separate customs categories, rather than a single €3 charge.

The charge is not necessarily based simply on the number of individual items, as multiple identical products can be treated as one category where they share the relevant classification.

What this means for independent retailers

Retailers selling to EU customers will need to consider how the new costs affect pricing, margins and delivery arrangements.

The additional duty may either need to be absorbed by the retailer or passed on to customers, while retailers also need to ensure their customs classifications and declarations accurately reflect the products being shipped.

VAT remains a separate consideration, with retailers using the EU's Import One Stop Shop (IOSS) able to collect VAT at checkout for eligible low-value sales, while the new customs duty is an additional charge.

Retailers should also be aware that how charges are collected can vary, with some businesses including them at checkout and others leaving customers to pay import charges when the parcel arrives.

What retailers should review

Independent retailers selling into the EU should review:

• Product classifications: Check that products are correctly classified for customs purposes.
• Pricing: Consider whether the new duty should be absorbed or passed on to customers.
• Mixed orders: Assess how different product categories within a single parcel could increase costs.
• Checkout processes: Make clear to EU customers what duties and taxes are included in the purchase price.
• Delivery arrangements: Check how your courier or postal provider handles customs charges and any associated administration fees.
• IOSS arrangements: If applicable, ensure VAT collection and customs processes are correctly configured.

The changes add another layer of cost and administration for UK retailers trading with EU customers, making it important to factor the new rules into cross-border pricing and fulfilment decisions.

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