If you sell into the EU from outside it, your customs costs and paperwork change on 1 July 2026. The EU is scrapping the €150 duty-free threshold and replacing it with a flat €3 customs duty per item category. This guide covers what's changing, when it happens, and exactly what to set up in Linnworks to stay compliant and avoid surprise charges.


Key takeaways

  • The EU's €150 duty-free threshold for low-value imports ends on 1 July 2026.
  • In its place, a flat €3 customs duty applies per item category (per HS code) on consignments under €150 sent to EU consumers from outside the EU.
  • It applies first to IOSS shipments — about 93% of e-commerce flows into the EU — and may extend to all sellers from October 2026.
  • This will be an interim regime that runs until 1 July 2028, when the EU Customs Data Hub takes over with full standard tariff rates.
  • A separate, additional €2 customs handling fee is expected from November 2026.
  • In Linnworks:add correct HS tariff codes, set Country of Origin, keep passing IOSS numbers, and set commodity descriptions and your EORI number.


On this page


1. New EU customs changes 2026


Q: What's changing for EU imports on 1 July 2026?


From 1 July 2026, the EU abolishes its €150 duty-free threshold for low-value imports. Until now, parcels worth €150 or less entered the EU free of customs duty, though VAT still applied. From 1 July, a flat €3 customs duty applies per item category on any consignment valued under €150 sent to an EU consumer from a non-EU country.


Q: How much is the new EU customs duty, and how is it calculated?


The duty is €3 per distinct item category — that is, per HS/tariff code — not per parcel. A parcel containing one silk blouse and two wool blouses spans two tariff codes, so €6 is due (2 × €3). Items that share a single tariff code are charged once: €3, whatever the quantity. Your product classification in Linnworks decides what you pay, so it has to be right.


Q: Who does the €3 duty apply to first?


It applies first to consignments imported under the EU's Import One-Stop Shop (IOSS) scheme — about 93% of e-commerce flows into the EU. From October 2026, the European Commission will review monthly whether trade is shifting to avoid the flat rate, and may extend it to all sub-€150 consignments regardless of IOSS status.


Q: What's the timeline for the EU customs changes?

  • 1 July 2026 — the €150 duty-free threshold is abolished; the €3 flat-rate duty begins for IOSS consignments.
  • October 2026 — the European Commission may extend the flat rate to all sub-€150 consignments.
  • November 2026 — a separate €2 customs handling fee is expected.
  • 1 July 2028 — the interim regime ends; the permanent EU Customs Data Hub applies full standard tariff rates.

2. HS Tariff Codes and Classification


Q: Why do HS Tariff Codes matter more now?


Because the €3 duty is charged per tariff category, every item you ship needs a correct HS code. Missing or incorrect codes cause unexpected duty charges, customs delays, or rejected shipments. Most EU-bound carriers require 8-digit codes; Royal Mail accepts 6–10 digits.


Q: How do I add HS Tariff Codes to my items in Linnworks?


Add HS Tariff Codes per item, or in bulk by CSV import. Export your SKU list from Dashboards > Query Data > Stock Items, add an HSTariffCode column with the correct codes, then re-import via Settings > Import Data > Import Now using Inventory Import. Map this property to your carrier integration under Shipping > Integrations > [Courier] > Properties.

3. Country of Origin


Q: Do I need to declare Country of Origin?


Yes. Most carriers require the country of origin for international shipments, and it forms part of the customs declaration. Store it as the CountryOfOrigin item Extended Property using the ISO 2-letter country code — CN for China, GB for the United Kingdom. Set it at the item level, or as a default value in the carrier service config.

4. IOSS and VAT Compliance


Q: What is IOSS, and do I still need it?


IOSS (Import One-Stop Shop) lets non-EU sellers collect, declare, and remit VAT on goods under €150 at the point of sale, so the buyer doesn't pay VAT on delivery. And it’s what triggers the €3 flat-rate duty under the new regime. You still need it, so keep passing the correct IOSS number to your carriers on every eligible shipment.


Q: How does Linnworks pass IOSS numbers to carriers?


Marketplace IOSS numbers — from Amazon, eBay, Etsy, and other supported channels — are captured automatically by Linnworks and passed to carriers via the MARKETPLACE_IOSS Order Extended Property. For your own IOSS registration (when you sell on your own website), set it in the carrier integration config. For marketplaces Linnworks doesn't support natively, use the Rules Engine to assign IOSS numbers automatically.

5. Customs Declarations and documentation


Q: What customs data does my courier need for EU-bound shipments?


For shipments from a non-EU country to EU consumers, carriers generally require five things: HS tariff code (8 digits for most carriers), country of origin, goods/commodity description, declared item value (VAT-exclusive for IOSS), and your EORI or VAT number. Set each of these as an Extended Property on your items, or configure them as defaults in the carrier service settings.


Q: What is a commodity/goods description and how do I add it in Linnworks?


It's a plain-language description of the product used on customs documentation — for example, 'Cotton T-Shirt'. Store it as the CommodityDescription or GoodsDescription item Extended Property. Without one, Linnworks falls back to the item title. Set explicit descriptions for accuracy, especially as customs scrutiny increases after July 2026.


Q: Do I need an EORI number?


If you ship from the UK as a business, yes — your EORI number is required on customs declarations. Add it in the carrier integration config, under the EORI/VAT Number field. Sellers shipping from other non-EU countries should check their local customs authority, as an equivalent importer/exporter registration number may be needed.

6. Pricing, landed costs, and fulfilment


Q: How should the €3 duty affect my pricing?


The €3-per-item category duty raises the landed cost of low-value EU orders, and the hit is largest on cheap items — €3 on a €5 accessory is a 60% uplift. Decide whether you can absorb the cost. If you can’t, you’ll need to build it into your product price or show it transparently at checkout.


Q: What about multi-item parcels with different product types?


Each distinct HS tariff category in a parcel carries its own €3 duty — a parcel spanning three tariff codes attracts €9. This may change how you bundle orders or set minimum order values, and it makes correct HS code assignment matter even more, so you neither over- nor under-charge.


Q: Should I move stock into the EU to avoid the duty?


Fulfilling from inside the EU — via Amazon Pan-EU FBA, a 3PL, or your own EU warehouse — removes customs duty on individual B2C shipments entirely, because the goods are already in free circulation. It's worth weighing whether your EU sales volume justifies the cost. Linnworks supports multi-location stock management if you expand your fulfilment footprint.