EU HS Code Tariff Changes from 1 July 2026
From 1 July 2026, the EU is changing how customs duty is charged on goods imported from outside the EU, including products shipped from the UK.
What's changing?
Until now, most parcels worth €150 (excluding VAT or less could be imported into the EU without paying customs duty.
From 1 July 2026, that exemption is ending. This means that all commercial imports could be subject to customs duty, no matter how much they're worth.
To make things simpler for lower-value shipments, the EU is introducing a temporary €3 customs charge for each line item in qualifying parcels and EU member states.
Multiple quantities of the same product will be charged one fee of €3. For example;
- 10 x Ivory Large Brim Sinamay Boater Fascinator Hat Base = €3 duty charge
- 5 x Ivory Large Brim Boater, 5 x Light Blue Large Brim Boater = €6 duty charge
What are HS codes?
HS codes are used to classify products for customs. Every item has one, and it tells customs:
- What the product is
- How much customs duty should be charged
- Whether any special rules or restrictions apply
For example, a sinamay hat base, a silk flower and a length of ribbon will all have different HS codes.
Which EU countries does this affect?
Both IOSS (VAT) and duties will be collected from the following countries;
- Austria
- Belgium
- Cyprus
- Denmark
- Estonia
- Finland
- Germany
- Ireland
- Italy
- Luxembourg
- Malta
- Netherlands
- Portugal
- Slovakia
- Spain
- Sweden
IOSS (VAT) but no duties will be collected from the following countries;
- Bulgaria
- Latvia
- Lithuania
- Croatia
- Czechia
- Hungary
- Poland
- Slovenia
Any applicable duties will be collected by customs and will need to be paid for before delivery of the parcel. For a breakdown of how duties are charged, please see above.
IOSS (VAT) and duties cannot currently be collected from the following countries;
- Greece
- Romania
What about orders over €150?
For shipments worth more than €150 (excluding VAT), nothing changes. Customs duty will still be calculated using the product's HS code, country of origin and customs value, just as it is today.
What about VAT and IOSS?
The new €3 customs duty doesn't replace or change VAT. The new €3 customs duty is simply an additional customs charge and is separate from the VAT process.
Why is the EU doing this?
The EU says the changes are designed to:
- Create a fairer system for EU businesses.
- Reduce customs fraud and undervalued imports.
- Make customs processing more consistent.
- Improve the way millions of online orders are handled every year.
This is a temporary measure and is scheduled to end on 1 July 2028, replaced by the EU's new permanent customs regime as part of the wider customs reform programme.