New EU customs rules from July 1, 2026: duty-free threshold removed for low-value shipments, new compliance requirements

The European Council has officially adopted a customs reform regulation, which will abolish the duty-free treatment for imports valued at €150 or less as of July 1, 2026, while introducing stricter requirements for customs declarations. MGSCENT hereby reminds you to pay attention to the following changes and prepare accordingly in advance:

Note: The transition period allows businesses time to adapt to new compliance standards before full implementation.

• Full formal customs clearance: All shipments entering the EU must submit complete customs documentation and pay applicable duties; simplified low-value clearance exemptions are no longer available.
• Buyer identification: Each shipment must indicate the trade type (B2B or B2C) and provide the buyer’s EORI number (for B2B) or VAT number (for B2C via IOSS).
• Decentralized clearance requirement: For B2C parcels not using IOSS with a value ≤ €150, customs clearance must be completed in the EU member state where the recipient is located; centralized clearance in the first point of entry (e.g., the Netherlands) followed by onward transit to other member states is prohibited.
• Product Identification Code (PID)—applicable to B2C shipments
  • From July 1, 2026: Recommended preparation in advance
  • From November 1, 2026: Mandatory declaration
  • For each declared item, the following must be provided:
    • Seller product identifier (mandatory, e.g., SKU/ASIN)
    • Manufacturer product identifier (mandatory, e.g., factory model number)
    • Standardized product identifier (if available, e.g., EAN/GTIN/UPC)

1. Improve declaration data: Provide accurate HS codes, detailed product descriptions, truthful declared values, country of origin, and tax identification numbers for both buyer and seller.
2. Consolidate declarations by product category: For B2C shipments, items with the same HS code should be declared together to avoid being split into multiple entries, which could result in repeated €3 per-item tariffs.
3. Register and use IOSS: Strongly recommend registering for IOSS (Import One-Stop Shop) when shipping B2C orders. This enables centralized VAT declaration and faster customs clearance at the destination; IOSS applies only to B2C shipments and not to B2B consignments.
4. Pre-enter PID information: Maintain product SKU, manufacturer codes, and barcode details in your ERP or logistics system to prevent delays during customs clearance after the mandatory implementation in November.