International trade is constantly evolving, and businesses trading with Europe are now assessing the potential impact of upcoming changes to the EU’s low-value import rules. From 1 July 2026, the European Union will remove the current customs duty exemption for low-value imports entering the EU from non-EU countries.

This is a topic that has attracted significant attention across the customs, logistics and e-commerce sectors, as businesses seek to understand how the changes may affect costs, supply chains and existing trading arrangements. For companies shipping goods into Europe on a regular basis, understanding these changes early could help avoid unexpected costs, delays and difficult conversations with customers once the new rules come into effect.

What is changing?

At present, goods imported into the EU with a value of up to €150 are generally exempt from customs duty, although VAT may still apply. From 1 July 2026, that exemption will end and low-value shipments entering the EU may become subject to both customs duty and VAT. As part of the transition to the wider EU Customs Reform programme, a temporary simplified customs duty model has been introduced. Current guidance indicates that from July 2026, low-value consignments entering the EU may be charged a fixed customs duty of around €3 per HS code declared within the shipment. This temporary arrangement is expected to remain in place until wider customs reform measures are introduced. This does not mean €3 per item or €3 per parcel. For example: • A parcel containing 10 identical products classified under a single HS code may receive one €3 customs charge. • A parcel containing goods classified under three different HS codes may receive three charges (€9 in total), regardless of the quantity being shipped.

Will this change UK export customs procedures?

In most cases, no. Export customs procedures in the UK are not expected to change significantly as a result of these new EU rules. Export declarations will still require the standard information already provided today, including commodity codes, values and shipment details. The main operational change happens once goods arrive in the EU and import customs authorities apply the updated low-value import rules. However, this does not mean exporters are unaffected.

How could this affect importers and exporters?

Although the customs process itself remains largely unchanged at export stage, the commercial impact may be felt across the supply chain. Importers receiving goods into the EU may see increased landed costs and could begin reviewing supplier choices, delivery arrangements, pricing models, fulfilment locations and shipping terms. For exporters, the impact will depend heavily on the agreed Incoterms® and commercial arrangements in place. Where the buyer is responsible for import charges, the additional cost is generally absorbed at destination. However, where goods are sold under terms that place import responsibility with the seller, businesses may need to review pricing structures, margins and overall shipping costs more closely.

What should businesses do now?

Businesses trading regularly with Europe do not need to panic, but preparation now could reduce disruption later. • Review your commodity codes - ensure goods are classified correctly and consistently. Incorrect classification could lead to unexpected charges, customs queries or delays. • Understand your Incoterms - confirm who is responsible for import duties and taxes and whether existing trading agreements remain commercially viable once the new rules take effect. • Review shipment structures - where appropriate, consider whether shipment consolidation or fulfilment changes could improve efficiency and help manage future costs. • Speak to customers early - additional import costs may influence purchasing decisions. Open discussions now can help avoid surprises later. • Check customs data quality - accurate values, descriptions and supporting documentation remain essential for smooth customs clearance and efficient border processing.

Looking ahead

Although the full impact will take time to develop, these changes are expected to influence how businesses trade with Europe and may gradually affect sourcing decisions, pricing strategies and supply chain planning. Some businesses may choose to absorb additional costs, while others may pass increases through pricing or review their existing supply chain models. Many companies are already exploring ways to reduce customs exposure through consolidation, local fulfilment solutions or revised commercial agreements. For both importers and exporters, preparation will be key. Understanding how the new rules interact with customs procedures, commercial agreements and customer expectations will help businesses minimise disruption and keep goods moving efficiently once the changes come into effect.

If your business regularly imports from or exports to the EU and would like guidance on how these changes could affect your supply chain, the GPL Customs Services team is available to help.