All notes

Duty-free small parcels are ending in three major markets

Selling small parcels abroad? The duty-free thresholds you may have priced around are going away.

  • US: $800 duty-free exemption suspended on Aug 29, 2025
  • EU: €150 duty relief removed on Jul 1, 2026
  • UK: £135 relief set to be removed by Oct 2028

United States: no more $800 duty-free entry

Duty-free de minimis treatment was suspended for all countries from Aug 29, 2025. A new order continued the suspension from Feb 24, 2026, and mail shipments have followed a new postal entry process since Jul 24, 2026. By law, the de minimis exemption is terminated from Jul 1, 2027.

European Union: a flat €3 duty per item

From Jul 1, 2026, B2C e-commerce consignments worth €150 or less pay a temporary €3 duty per item. Over €150, normal duty rates apply. The measure runs until Jul 1, 2028 and may be extended. It's owed by the customs declarant, such as the IOSS seller or its representative, whatever the VAT scheme.

One item means goods with the same tariff code, description, and origin, so in practice it's €3 per declaration line. Five identical T-shirts: €3. One T-shirt and one watch: €6.

How the EU €3 duty per item works: five identical T-shirts pay €3, one T-shirt and one watch pay €6, because one item means goods with the same tariff code, description, and origin.

United Kingdom: £135 relief is next

Today, goods up to £135 get customs duty relief, and VAT is charged at the point of sale by the seller or the online marketplace. Under draft legislation, the relief is to be removed by Oct 2028 at the latest. Standard UK tariff rates will apply, with no simplified flat rate. Sellers and marketplaces without a UK presence will need to appoint a fiscal representative, and a new fee on low-value imports is planned, though its design isn't set yet.

What it means for your price

Duty is now part of your cost to enter a market.

  • Know each product's tariff code and origin. They set the duty, and in the EU, how many €3 items you pay for.
  • Add duty to your landed cost, not just shipping.
  • Decide who pays the duty: you, or the buyer at delivery.
  • Note the next rule-change date for each market.

Sources

  • Executive Order 14324 (Jul 30, 2025)
  • Executive Order 14388 (Feb 20, 2026)
  • One Big Beautiful Bill Act
  • U.S. CBP, CSMS #66065494 and interim final rule, 91 FR 37801 (Jun 24, 2026)
  • Council Regulation (EU) 2026/382
  • European Commission, customs guidance on the €3 duty (Jun 2, 2026)
  • EU Access2Markets
  • HM Government, "Reforming the customs treatment of low value imports into the UK" (Jul 13, 2026) and consultation response
  • GOV.UK, VAT guidance on overseas goods

Check your product before you stock it.