EU Small Parcel Import Duty

This article explains the new EU customs rules taking effect on 1 July 2026, what they mean for your shipments, and what you need to do in Easyship before the deadline.

Overview

From 1 July 2026, two new rules apply to small parcels shipped into the EU from non-EU countries:

1. A €3 customs duty per unique HS code + country of origin combination on eligible shipments
2. Three Product Identifiers (PIDs) that are options on EU-bound shipments via FedEx and UPS

These changes affect low-value cross-border shipments (≤€150 declared value) sent to EU member states. Action is required before the deadline to stay compliant and avoid delays or unexpected costs.

Note: Further EU import regulation changes are expected in November 2026, including an additional parcel-level fee. Easyship will update this article as details are confirmed.

What's Changing

1. €3 Small Parcel Duty

A fixed €3 fee applies per unique HS code + country of origin (COO) combination within an eligible shipment.

All five conditions must be true for the duty to apply:

• Sender is a taxable person (a business)
• Shipment originates from outside the EU
• Destination is an EU member state
• Declared value is ≤€150 (goods only)
• Recipient has no valid VAT ID (B2C)

Note: C2C (consumer-to-consumer) and C2B (customer return) shipments are not subject to the duty under the regulation. However, Easyship currently has no way to verify whether a sender is a business or a consumer at the point of shipping, so all shipments are treated as business-origin by default. If you are a consumer shipping a personal parcel or return, the duty may still be applied. 

Not affected:

• Shipments with a declared value over €150
• EU-to-EU (intra-EU) shipments
• B2B shipments where the recipient has a valid VAT/EORI number

Important — how the duty interacts with VAT: The €3 duty is included in the dutiable value before VAT is calculated. This means VAT is charged on the total landed cost including the duty, slightly increasing the overall tax amount per shipment.

How the duty is calculated — example:

A shipment to Germany from outside eu/(or write as: from US) (B2C, declared value €80) containing:

Total duty: €6.00 (2 unique HS + COO combinations × €3)

2. Product Identifiers (PIDs)

FedEx and UPS have three optional product identifiers per item on EU customs forms from 1 July 1 - 31 October 2026.

Phased timeline:

• 1 July – 31 October 2026: PIDs are optional
• From 1 November 2026: PIDs are mandatory on all eligible EU-bound shipments

The duty applies when:

• Recipient has no valid VAT/Tax ID on file (B2C)

Not affected:

• B2B shipments where the recipient's Tax ID is provided

Note:  If the recipient's Tax ID is provided, the shipment is treated as B2B — PIDs are required from 1 November 2026 and the €3 duty does not apply. If no Tax ID is provided, the shipment is treated as B2C — PIDs apply and the €3 duty is charged. This is the single determining factor for both obligations. 

What You Need to Do

Dashboard Setup (Before 1 July 2026)

1. Go to your Product Catalogue and update your product listings to include the required PID fields.
2. Map your Merchant PID and Manufacturer PID for each product.

Bulk CSV upload is supported for large catalogues.

At the Time of Shipment

3. Review and verify any auto-filled PIDs before confirming.
4. For B2B shipments, enter the recipient's VAT/EORI number — this skips the PID requirement and confirms B2B status.

FAQs

Does the €3 duty apply to all my EU shipments?

No. The €3 flat duty applies per unique HS code + country of origin combination when all of the following are true: the shipment originates from outside the EU, the destination is an EU member state, the declared value is ≤€150, and no recipient Tax ID is provided (B2C). If the recipient's Tax ID is provided, the shipment is treated as B2B and the duty does not apply.

Do the Product Identifier (PID) requirements apply to all my EU shipments?

PID requirements apply to EU-bound shipments via FedEx and UPS regardless of shipment value. They are optional from 1 July 2026 and mandatory from 1 November 2026. The only exemption is where the recipient's Tax ID is provided — in that case, PIDs are not required. If you ship via other carriers, check with Easyship whether PID requirements apply to your courier.

Is the €3 duty charged once per parcel or once per item?

Neither exactly. It's charged once per unique HS code + country of origin combination within the shipment. Multiple items sharing the same HS code and COO count as one charge. Items with different HS codes or different countries of origin each trigger a separate €3 fee.

Will customer returns be charged the €3 duty?

Yes. The €3 duty is non-refundable under the current regulation. However, for return shipments entering the EU — items that were previously exported from the EU — Return Goods Relief may be available. Speak to your logistics team about applying the correct customs procedure codes. Easyship will update guidance on this as carrier processes are confirmed. 

Do I need PIDs if I have a VAT ID?

PIDs are still required if you have a VAT ID. PIDs are exempt only when your receiver has a valid VAT ID and that VAT ID should not belong to you.

What is the risk of double VAT if I use IOSS?

If your shipping provider cannot pass your IOSS number to the carrier, VAT may be collected at checkout and again at customs clearance. Confirm with Easyship that your IOSS number is being correctly transmitted to all relevant couriers.

Are there more EU changes coming after July 2026?

Yes. An additional parcel-level fee is expected from November 2026. Details are still being finalised. Easyship will publish updates as the regulations are confirmed.