Royal Mail 
EU Trade Insights

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 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.