Ecommerce Sellers Shipping to EU: New Customs Duty on Low-Value Shipments and Additional Details Required
If you sell to customers in the EU, the rules for low-value parcels are changing. For years, orders under €150 entered the EU duty free. From 1 July 2026, that exemption ends and a new customs duty applies. Because parcels shipped before 1 July may only clear customs after it, JustShip starts applying this to every EU shipment you create from 22 June 2026.
VAT and customs duty are separate
Two different charges apply when your goods enter the EU:
VAT (Sales Tax)
The sales tax on the goods, the same tax a buyer pays on purchases in the EU.
Customs Duty
A separate charge for bringing the goods into the EU, on top of any VAT.
How the new duty is calculated
For orders up to €150, the duty is €3 for each unique HS code and country-of-origin combination in the parcel, not per parcel. JustShip automatically groups items that share the same HS code and origin onto one customs line, charged €3 once. Each different HS code or origin is a separate line, with another €3.
| Item | Origin | HS code | Qty |
|---|---|---|---|
| Basic White Cotton T-Shirt | China | 6109100010 | 2 |
| Item | Origin | HS code | Qty |
|---|---|---|---|
| Basic White Cotton T-Shirt | China | 6109100010 | 1 |
| Basic Black Cotton Shorts | China | 6103420000 | 1 |
| Item | Origin | HS code | Qty |
|---|---|---|---|
| Basic White Cotton T-Shirt | China | 6109100010 | 1 |
| Basic White Cotton T-Shirt | Vietnam | 6109100010 | 1 |
| Item description | Origin | HS code | Qty |
|---|---|---|---|
| White Cotton Tee | China | 6109100010 | 1 |
| Plain White T-Shirt | China | 6109100010 | 1 |
Above €150, standard percentage duty rates apply instead of the flat €3, IOSS no longer applies, and the order must go by Express EU.
Who pays: Postal EU vs Express EU
You decide who covers the charges, and when:
- Postal EU (goods up to €150): duty can't be prepaid, so your buyer always pays it on delivery. For the VAT, choose Pre-paid, Sender to prepay it yourself, or Post-paid, Receiver to leave it to the buyer.
- Express EU (any value, and the only option above €150): choose Pre-paid, Sender to prepay VAT and duty so your buyer pays nothing on delivery, or Post-paid, Receiver to leave both to the buyer.
Which service to choose
Postal EU works well when:
- the goods value is up to €150;
- a lower-cost option is preferred;
- your buyer is fine paying the EU customs duty on delivery.
Postal EU prepays VAT where eligible through IOSS, but it is not a fully duties-paid service.
Express EU works well when:
- you want to prepay taxes and duties for your buyer;
- a smoother delivery experience is preferred;
- the goods value is above €150.
New details you need to enter
To clear customs, every EU shipment now needs two product details: a merchant product identifier (your SKU) and a manufacturer product identifier (a unique customs reference).
Connected your Shopify store? We prefill both for you, the merchant ID from your product SKU and the manufacturer ID from your store name plus SKU. You can review or bulk-edit any item before you ship.
In short
- From 22 June 2026, EU orders up to €150 carry a new customs duty.
- It's €3 for each unique HS code and country-of-origin combination, not per parcel.
- VAT and duty are separate. IOSS covers VAT only.
- Postal EU (up to €150): your buyer pays the duty on delivery.
- Express EU (any value, required above €150): prepay everything so your buyer pays nothing, or leave it to them.
- The shipment form now needs two new product details: merchant and manufacturer identifiers.
EU customs rules keep evolving, and more changes are expected. We'll keep you posted here on our announcements as they land.