Royal Mail 
EU Trade Insights

The EU is one of the largest trading blocs in the world, offering UK businesses unparalleled opportunities for growth with access to 27 member states and over 440 million consumers.

By exporting to the EU, you can not only diversify your customer base but reduce reliance on domestic markets and help position your business for long-term success.

Expanding into the EU opens doors to new revenue streams and high-demand sectors, boosting profitability and helping you achieve sustainable growth.

With close geographic proximity, efficient logistics, and strong trade relationships, exporting to the EU is both a practical and strategic move. These advantages make it easier than ever for UK businesses to deliver products quickly and efficiently helping maintain strong cross border customer connections.

We are aware that some significant changes have been proposed for exports in to Europe and are actively working with industry experts and our partners to ensure that we are able to provide the most up to date information and relevant guidance for our customers.

Beginning on the 1 July 2026, a flat customs duty of €3 will apply to low-value e-commerce parcels under €150 entering the EU. This measure is described as temporary and transitional, ahead of broader EU customs reform and the implementation of a future more permanent regime. According to the EU Council’s release, the €3 duty will apply to all goods under €150, including those sold by non-EU sellers registered under the Import One-Stop Shop (IOSS) for VAT purposes.

Additionally, a separate EU “handling fee” remains under consideration, and individual member stat

 

Changes to EU Customs Duties for Low-Value E-Commerce Parcels. What you need to know

Romania was the first EU member state to introduce a fee. From the 1st of January 2026 Romania introduced a RON 25 (approx. £4.35) logistics tax for items posted from outside of the EU to Romania for items valued under €150. The fee is non-refundable once a parcel has been delivered, even if it is subsequently returned. Undelivered parcels are not subject to this charge. The fee applies regardless of where the item is cleared, is charged per shipment, and is payable by the sender or seller. We are actively working with Poșta Română and our other Romanian partners to understand all of the relevant details and will continue to update with the latest information once available. It is important to note that we continue to export items to Romania as normal. We recommend customers visit our Incident bulletins for the latest information on service levels.

Italy also introduced a fee on the 1st of January 2026. Italy introduced a EUR 2 (approx. £1.73) customs administration fee for items posted from outside of the EU that are valued under €150. The fee applies to all items cleared in Italy, including gifts, but excludes items classified as documents. At present, the fee will be collected directly from the Italian recipient. However, Royal Mail is actively working on a “sender pays” solution, which we aim to introduce in the near future.

It is important to note that we continue to export items to Italy across all services as normal. We recommend customers visit our Incident bulletins for the latest information on country specific issues.

 

How Will This Work With My Royal Mail or Parcelforce Shipments?

We want to help customers continue to export to the EU without disruption. We are actively working with our overseas partners, to understand all of the relevant details and will continue to update with the latest information once available.

At present the expectation is that this will be broken down into phases.

Phase 1 – Temporary Solution (Expected in stages beginning early in 2026)​

  • A simplified mechanism will apply to collect duties on low-value parcels.​

  • A fixed customs duty fee of €3 will apply on small parcels valued at less than €150 entering the EU from the 1 July 2026. The rate will apply to all goods entering the EU for which non-EU sellers are registered in the EU’s import one-stop shop (IOSS) for value-added tax (VAT) purposes.

  • Platforms and sellers must start declaring and paying duties using existing systems.​ Marketplaces become deemed importers responsible for duties, VAT interface & compliance.

The measures are expected to stay in place until the permanent arrangement for such parcels, agreed in November 2025, enters into force.

 

Phase 2 – Full Reform (Expected mid 2028)​

  • The €150 threshold will be removed.​

  • Launch of the EU Customs Data Hub, a centralised digital platform replacing 27 national systems currently in existence.​ Centralised risk analysis, Pre-arrival decisions and data-first supervision across Member States.

  • Full customs regime applied to all parcels, with automated duty calculation and real-time data analysis.​

  • Introduction of a simplified tariff system (five product categories with flat duty rates) for e-commerce goods.

Currently, goods valued under €150 entering the EU from non-EU countries are exempt from customs duties, although VAT still applies. This exemption has been in place to simplify customs procedures for low-value imports and reduce administrative burdens for businesses and consumers.

On the 13th of November 2025, the European Union decided to abolish the €150 customs duty exemption for low-value imports as part of its broader customs reform. This decision marks a significant shift in trade policy and is part of a broader strategy to:​

  • Ensure Fairness – Create a more level playing field for businesses and protect consumers from unfair practices. All sellers, whether inside or outside the EU, will now operate under the same rules.​

  • Prevent Fraud – Closing loopholes that allowed certain shipments to avoid taxes.​

  • Modernise Customs Oversight – Improving transparency and efficiency in cross-border trade to support the future of e-commerce.​

The change is currently expected to be implemented in a phased manner between 2026 and 2028. Once fully in effect, all goods entering the EU from non-EU countries will be subject to customs duties regardless of their value, in addition to VAT.

The EU Council and European Commission are concurrently discussing a customs handling fee during this transition to help offset the increasing costs customs authorities face with growing parcel volumes. The EU currently aims to implement this fee in November 2026 and we will provide more information as this becomes available. This remains seperate to the above.

Beginning on the 1 July 2026, a flat customs duty of €3 will apply to low-value e-commerce parcels under €150 entering the EU. This measure is described as temporary and transitional, ahead of broader EU customs reform and the implementation of a future more permanent regime. According to the EU Council’s release, this rate will apply to all goods entering the EU for which non-EU sellers are registered in the Import One-Stop Shop (IOSS).

 
Romania

Romania was the first EU member state to introduce a fee. From the 1st of January 2026 Romania introduced a RON 25 (approx. £4.35) logistics tax for items posted from outside of the EU to Romania for items valued under €150. The fee is non-refundable once a parcel has been delivered, even if it is subsequently returned. Undelivered parcels are not subject to this charge. The fee applies regardless of where the item is cleared, is charged per shipment, and is payable by the sender or seller. We are actively working with Poșta Română and our other Romanian partners to understand all of the relevant details and will continue to update with the latest information once available. It is important to note that we continue to export items to Romania as normal. We recommend customers visit our Incident bulletins for the latest information on service levels.
 

Italy

Italy also introduced a fee on the 1st of January 2026. Italy introduced a EUR 2 (approx. £1.73) customs administration fee for items posted from outside of the EU that are valued under €150. The fee applies to all items cleared in Italy, including gifts, but excludes items classified as documents. At present, the fee will be collected directly from the Italian recipient. However, Royal Mail is actively working on a “sender pays” solution, which we aim to introduce in the near future.

It is important to note that we continue to export items to Italy across all services as normal. We recommend customers visit our Incident bulletins for the latest information on country specific issues.
 

France

From 1st of March 2026, the French Government is introducing a small parcel tax (Taxe sur les petits colis/ TPC) for packages with a value of €150 or below sent from outside the EU to France, Monaco, Guadeloupe, Martinique and Reunion. This small parcel tax is applicable for items destined for France regardless of carrier.

The new €2 tax applies to each classified HS code in your parcel (not per parcel). This is paid by the person responsible for import VAT. Parcels containing Gifts (C2C) whose total value is €45 or below are unaffected by this change. Guadeloupe, Martinique and Reunion have a €22 or below exemption for B2C/B2B items.

Please note for France, Monaco, Guadeloupe, Martinique and Reunion a 6 digit HS code (e.g 401199)  is sufficient, for all other French overseas regions and departments at least 8 digits are required

 

How does this impact me as the sender?
Scenario Who pays the tax?
Import One Stop Shop (IOSS)

For senders exporting goods to France using the IOSS scheme, you must either be registered for IOSS in France or be otherwise recognised by the French tax authorities.

  • If you are already IOSS registered in France, the €2 tax will be collected together with VAT through your usual IOSS account.
  • If you are IOSS registered in an EU member state other than France, but have an existing relationship with the French tax authorities for other reasons, you can subscribe to the “declare & pay” service for the small parcel tax and pay the €2 tax via your French tax account.
  • If you are neither IOSS registered in France, nor have an existing relationship with the French tax authorities, you must register for the One Stop Shop (OSS), indicating that the registration is for small parcel tax purposes. Once your account is activated and you receive your identification code, you can subscribe to the “declare & pay” service and manage payment of the €2 tax through your French tax account.

For more information about registering for the One Stop Shop please visit: The One-Stop Shop for Business Formalities and the National Business Register | INPI
Postal Delivery Duties Paid (PDDP) 

For senders exporting goods to France using the PDDP Delivery Term, the €2 tax will be passed back to you through the standard invoicing process. For consumers doing so, the €2 will be collected at point of sale (eg. during the checkout process on www.royalmail.com).
Delivered Duties Unpaid (DDU) For senders exporting goods to France using the DDU Delivery Term the tax will be charged to the recipient of the parcel. Please note items will be treated as DDU if the requirements for alternative pre-paid Delivery Terms, such as those we have listed above, are not met.

  
What this means for recipients:

  • For items sent to France using the IOSS or PDDP Delivery Terms, the French recipient will not incur any additional fees at the time of delivery.

  • For items under €150 sent to France using the DDU Delivery Term, La Poste (French postal service) will contact the recipient to arrange payment of any applicable taxes and duties. Please note that La Poste will also apply a service fee, which is payable directly to them by the recipient. Payment can be made online, although there is also the option to do so upon delivery, or at a local Post Office, at a higher cost.

Further information

We are working closely with La Poste and our other French partners to ensure readiness for 1 March.

For more information about the French small parcel tax please visit the portal of the French Directorate General of Customs and Indirect Taxes below:
https://www.douane.gouv.fr/actualites/taxe-sur-les-petits-colis-point-dinformation-sur-sa-mise-en-oeuvre

We will continue exporting items to France as usual and will keep you informed with the latest service updates via our Incident Bulletins:

parcelforce.com/service-updates
royalmail.com/international-incident-bulletin

Frequently Asked Questions

As customs authorities worldwide continue to tighten security and compliance requirements. Providing accurate data such as detailed product descriptions, HS codes, and sender/receiver information can help ensure smoother customs clearance, reduce the risk of delays, and support more effective risk assessment by authorities.

With EU regulatory changes on the horizon, the accuracy and completeness of Electronic Advanced Data (EAD) will play an even more important role in keeping goods moving efficiently across borders. We strongly encourage exporters to use authorised shipping solutions which will help with this and to prioritise data quality to minimise disruptions as these new measures are introduced.

For more information about data and it's continued importance when sending abroad please see here and here.