The EU €3 duty and €2 handling fee: what non-EU stores need to change

What changed

Until 30 June 2026, most goods worth up to €150 entered the EU free of customs duty. That relief is gone, and two new charges replace it for online sales to EU consumers.

A third change costs no money but can hold up your shipments: since 1 November 2026, consignments up to €150 need product identifiers in the customs declaration.

The rules cover goods outside the EU at the time of sale, shipped by or for the seller to an EU customer. That includes UK stores shipping to the EU. They don’t cover goods already in the EU when ordered, and business customers buying for resale generally fall outside them.

How “per item” works

The law defines an item as one or more goods in a consignment sharing the same tariff classification, description and, where the declaration records it, origin. The Commission’s guidance puts it more simply: both charges apply per declaration line, whatever the quantity on that line.

On a €25 single-item order, €5 is 20% of the sale price. That’s why the charge matters most to stores with low order values.

Three details catch people out:

• The declaration type changes the count. The Commission gives the example of three different women’s suits. On a simplified H7 declaration, which uses a 6-digit HS code, they’re one item: €5. On a full H1 declaration, with 10-digit codes, they’re three items: €15. Your carrier or broker usually decides which declaration is used, so ask.
• Separate shipments are separate consignments. One order sent in two parcels is two consignments, each with its own charges and its own €150 limit.
• The €150 is the price of the goods. Transport and insurance are excluded if they’re shown separately on the invoice.

Don’t try to save money by grouping products under one code. The Commission’s guidance says grouping isn’t allowed where the €3 duty applies, and customs can look through arrangements designed to avoid it. The declarant remains responsible for accurate data. Correct codes are the goal, not cheap ones.

Who pays

Legally, the debtor is the declarant: the business lodging the customs declaration, or the seller or IOSS holder behind it. The Commission says the consumer can’t be the debtor of the €3 duty, and that it isn’t a charge collected from the buyer at delivery.

In practice, the cost still reaches someone. Irish Revenue says the seller or delivery business pays the handling fee and may pass it on to the consumer. Shopify’s help pages say that in some setups the €3 is charged to the customer at delivery. So read your carrier’s terms rather than assuming.

Shopify merchants reported the €3 showing as €0 at checkout when the duty first applied, with missing HS codes among the suspected causes. If your checkout collects nothing, the charge may still be billed later, and it could come out of your margin. Place a test order to see what your checkout really does.

What to change

Product identifiers

The Commission’s guidance describes three identifiers:

Each identifier should point to exactly one product variant and stay the same over time. A manufacturer can also use its barcode as its own reference. So the common failures are blank SKUs, one SKU shared across variants, and no supplier reference on file.

Checking this by hand across a large catalogue is slow. We’re deciding whether to build a tool for it, and you can join the early-access list to hear if it goes ahead.

Questions for your carrier

1. Who is the declarant on our EU shipments: you, us or a broker?
2. Which declaration do you use (H1, H6 or H7), and how many digits of the HS code do you need?
3. Do you bill the €3 and €2 to us or to our customer? Do you add a charge of your own?
4. Which product identifier fields do you need from us, and in what format?

Choosing who bears the cost

• Build it into your EU prices. It’s the simplest option for the customer, but it hurts more on low-priced products.
• Add it at checkout or to shipping. It’s transparent, and the customer doesn’t get a bill later. Under IOSS, a fee charged to the customer at the point of sale counts towards the amount VAT is charged on.
• Leave it to delivery. This takes the least work, but it only applies if your carrier really does bill the customer. If so, say so clearly before purchase.

Whichever you choose, include VAT in your numbers: the Commission’s guidance says VAT is due on the handling fee.

Two routes worth asking a broker about

• Trade preferences. Goods that qualify for a preferential rate under a trade agreement can be declared on an H1 without IOSS, and then the €3 duty doesn’t apply. They still pay the €2 fee. This may suit a store selling goods made in a country with an EU trade deal, such as UK-made goods from a UK store. You need to be able to prove origin, and the extra paperwork may cost more than the €3 saved.
• Holding stock in the EU. Goods already in the EU when ordered aren’t covered by these charges, because they’re no longer imports at the time of sale. The Commission’s preliminary figures show 555 million parcels in Q3 2026, more than 60% below the pre-duty trend, and it notes that some goods now seem to be imported in bulk and distributed from inside the EU. You’d pay normal duties on the bulk import, and you’d take on EU VAT and storage, so this mostly suits higher volumes.

What’s coming next

• By 1 December 2027: the Commission must assess whether the EU Customs Data Hub will be ready on time. If not, it may propose extending the €3 duty.
• 1 July 2028: the €3 is due to end, and goods sold at a distance pay normal duty rates based on value, origin and classification. Depending on the product, that may be more or less than €3. Accurate codes and origin matter even more from then on.
• More product data: the Commission calls identifiers a first step, with broader product data requirements to follow once the Data Hub is in use.
• National fees: the Commission said national handling fees must stop once the EU fee applies.

This guide summarises the published rules as of the date above. It isn’t customs or legal advice. The Commission’s guidance is explanatory and not legally binding, so check your own case with a customs broker.