From 1 July 2026, a major change to the European Union’s customs rules will come into force. Parcels from non-EU countries worth up to €150, which are currently exempt from customs duties, will be subject to a fixed rate of €3 for each customs category of goods from 1 July 2026. The change will affect consumers who shop on platforms such as Temu, Shein and AliExpress the most. In addition, further charges will be introduced.
In this article we explain:
- what additional charges will apply to parcels from China from 1 July
- how to calculate the fee in advance (before you order the goods) so that you aren’t surprised by the final price
- how ordinary consumers and businesses will be affected
- whether we can expect warehouses to be relocated to the EU (so that sellers can mitigate the price impact on end customers)
How shipments from China worked until now
Until now, a simple rule applied: if you ordered goods worth up to €150 from a Chinese online shop, you did not pay customs duty. The change coming into effect in July is a further step in the EU’s efforts to protect its financial market from the unfair practices of certain suppliers from third countries, who artificially undervalued the value of a consignment or split a consignment into several parts in order to benefit from exemption from import duties. This decision was preceded by the abolition of the VAT exemption on low-value consignments of up to €22, effective from 1 July 2021. In the past, these measures were introduced with the aim of reducing the administrative burden on customs authorities in collecting customs duties and VAT. However, the European Commission had to reassess this aspect in view of the enormous volume of consignments from third countries, which is increasing every year. For this reason, the European Commission has taken steps to utilise the available means to simplify the collection of customs duties following the abolition of the exemption from July 2026.
It should be noted that this involves a temporary flat-rate charge from 1 July 2026 to 1 July 2028. During this period, the European Commission will monitor on a regular monthly basis whether these provisions are being circumvented and, if so, will promptly introduce targeted changes. At the same time, the European Commission will use this period, whilst the temporary measures are in force, to develop a centralised EU IT infrastructure through which customs authorities will be able to collect customs duties efficiently in future.
How will this work in practice?
Instead of traditional customs duties calculated as a percentage of the value of the goods, the EU will temporarily introduce a flat-rate customs duty of €3 for each customs category (known as a customs nomenclature code) in a consignment.
However, the customs nomenclature does not take into account how we perceive different types of goods in everyday life. For example, when it comes to clothing, a strict distinction is made between trousers and T-shirts as two separate categories. The same principle applies across all categories of goods – whether they are electronics, household goods or toys. Furthermore, the customs nomenclature also distinguishes between the types of material from which a product is made.
If you order a T-shirt and a USB cable in a single parcel directly from a third country, you’ll pay an extra 6 euros. This is because each product falls into a different customs category. If you order five identical T-shirts, you’ll only pay the 3-euro customs duty once, as they’re in the same category. However, if they are made of different materials, the situation becomes more complicated.
A different customs category may apply even to goods that appear to be identical. For example, a woollen T-shirt and a T-shirt made of synthetic fibres each have their own subcategory in the customs nomenclature, and so each will be subject to a separate duty of €3. You need to check the first six digits of the tariff code in the customs nomenclature for both items. If they are identical, they belong to the same category and you will pay only a single flat-rate duty of 3 euros for both goods. Otherwise, a separate 3-euro duty will be charged for each item, making a total of 6 euros.
The customs nomenclature (a list of goods with codes – the so-called CN code) for 2026 can be found here.
From November, a fee of €2 per consignment will also be added
Although the fixed customs duty of €3 may seem negligible at first glance, this amount represents a significant cost for low-value consignments. For example, when buying a mobile phone case worth 50 cents, you’ll pay customs duty amounting to 600 % of the item’s price. VAT is then added on top of that. This makes the case many times more expensive.
This flat-rate taxation of every product with its own nomenclature code applies only to imports of goods using the simplified ‘Import One-Stop-Shop’ (IOSS) scheme or goods that form part of a postal consignment. For all other situations, standard customs procedures will apply.
From November 2026, a handling fee of €2 will be introduced for most consignments from third countries, intended to cover the administrative costs incurred by the customs authorities in processing these consignments.
Who will be affected, and how?
The average consumer who occasionally orders something from an online shop outside the EU will pay a few euros more for each order containing multiple items. Platforms such as Temu, Shein and AliExpress should include customs duties and VAT directly in the shopping basket total, just as they currently do with VAT.
For businesses using dropshipping or direct imports from Asia, the reform means rising costs and a greater administrative burden. The IOSS (Import One Stop Shop) system, which until now has been used exclusively for collecting VAT, will be extended to include the collection of customs duties, thus becoming a single channel for both types of charges. In practice, this means that online platforms based in the EU, which facilitate deliveries for most foreign sellers, will collect customs duties as well as VAT.
Conversely, European retailers expect the change to level the playing field, as they have so far been competing against rivals who, thanks to an exemption, have been able to offer significantly lower prices. According to estimates, the new rules could bring in up to one billion euros a year for European budgets.
Anyone who regularly shops on Asian and American platforms will have to shop around more carefully: from July 2026, when ordering a T-shirt, a cable and a protective phone case, they will pay at least an extra €9 in customs duties alone, followed later by a further €2 in handling fees, plus 23 % VAT. Cheap imports from Asia will still be available, but their advantage over European goods will be significantly reduced.
What is the cut-off date for the new rules?
The key date for the application of the new customs regime is the date on which the customs declaration for the release of goods for free circulation is accepted. If the customs declaration is accepted on or after 1 July 2026, the consignment will be subject to the new flat-rate customs duty.
Practical questions and answers
01 Which types of businesses will be most significantly affected by the reform?
The reform will hit hardest those who base their entire business model on low prices from Asia. These are the so-called dropshippers, operators of small online shops importing directly from China, and resellers of products from platforms such as Temu, Shein and AliExpress. Operators of fulfilment centres outside the EU who send parcels directly to customers will be equally affected. For them, a flat-rate fee of €3 per item could significantly undermine their price competitiveness when dealing with low-cost goods. Companies that import goods in larger volumes and store them within the EU prior to resale will feel the impact to a lesser extent. This change may also provide the main incentive for online platforms to open warehouses in the EU.
02 What impact do you expect on small online shops using dropshipping or direct imports from Asia?
For dropshippers who send goods directly from a Chinese warehouse to a customer in the EU, the reform fundamentally changes the economics of every order. A flat-rate fee of €3 is relatively high for low-cost goods – for a product sold for €8, it represents almost 40% of the price, and for a mobile phone case costing 50 cents, it amounts to a price increase of more than 600%. Add to this the handling fee coming into effect in November 2026, and profit margins will shrink even further. Most of these businesses will have to rethink their product range, shifting towards goods where the fixed mark-up accounts for a smaller proportion of the price, or open a warehouse in the EU and stock it with goods in large volumes.
03 Will businesses have to prepare for a greater administrative burden when it comes to customs declarations?
The burden will increase significantly for businesses that legitimately purchase goods from third countries for their commercial activities. Each consignment will have to be correctly classified according to nomenclature codes, as it is the number of different codes in a consignment that determines the amount of customs duty. Businesses will have to introduce or adapt systems for the correct customs classification of goods, as an error in classification could result in underpayments or fines. Furthermore, platforms with IOSS registration will be responsible for collecting customs duties, in addition to collecting VAT.
04 How will the operation of the IOSS system change following the introduction of the new customs duties?
Until now, the IOSS (Import One Stop Shop) has served exclusively to simplify the payment of VAT on cross-border sales of goods into the EU from third countries, where the value of the consignment is up to €150. Following the change in customs rules, the IOSS will be extended to include the collection of customs duties – it will therefore become a single channel for both types of charges. For online platforms registered with IOSS, this means they will have to report both VAT and the new customs duties simultaneously. Operators not registered with IOSS will be subject to standard customs procedures, which are more administratively burdensome and potentially more expensive.
05 Could the new rules lead to more frequent customs checks and delays to shipments?
This is a real risk, particularly given that the European Commission intends to monitor on a monthly basis whether there is an outflow of individuals registered with the IOSS. The volume of consignments entering the EU is enormous – we are talking about hundreds of millions of parcels a year – and Member States' customs capacities are not designed to handle full checks on all of them. The introduction of new obligations is likely to trigger the need for additional checks on consignments with incomplete or incorrect customs data. Delivery delays of several days can be expected during peak periods, such as in the months leading up to Christmas. In the long term, the planned EU Customs Data Hub – scheduled for introduction from 2028 – aims to streamline these processes through digitalisation.
06 Do you expect some retailers to move their warehouses directly into the EU to avoid the new costs?
Yes, this trend is already visible, and the change is likely to accelerate it significantly. For larger platforms such as Temu and Shein, moving part of their stock to the EU is a logical step to maintain delivery speeds and avoid repeatedly rising customs duties. Existing warehouses in countries such as Poland, the Czech Republic or the Netherlands are attractive for this model. For smaller players, this is more financially demanding, but they too can turn to third-party fulfilment centres in the EU. Paradoxically, this trend may ultimately lead to more jobs in logistics within the EU. It is precisely this trend that the Slovak Republic could capitalise on – attracting foreign platforms to open warehouses in Slovakia, given its advantageous location at the heart of the EU and its proximity to the capital cities of neighbouring countries.
07 Can the reform realistically help European retailers compete with platforms such as Temu or Shein?
It will help, but not dramatically and not immediately. A fixed charge of €3 per product category increases costs for Asian competitors, but does not fully level the playing field. Large platforms have sufficient capital to absorb part of the costs within their own margins, offset them through economies of scale, or stock goods within the EU in large volumes subject only to a fee of €3 per nomenclature code. A genuine levelling of the playing field might not occur until 2028, when there will be a significant change to customs regulations.
08 In your view, what are the greatest risks that the reform poses to consumers?
The main risk is a rise in the price of goods without a corresponding improvement in quality – consumers will pay more for the same goods that they would have bought more cheaply before June 2026. The second risk is a lack of transparency regarding charges: if platforms do not transparently include customs duties and handling fees in the price at the time of ordering, consumers may receive an unexpected invoice upon collection of their parcel.
09 Can we expect further tightening of the rules for online imports from non-EU countries?
Definitely yes. The 2026 reform is only the first step; it is a transitional measure. The year 2028 will bring full customs duties without a fixed flat rate, which will make many categories of goods from Asia and the US much more expensive. At the same time, product legislation is being tightened – covering product safety, chemical standards and standards for electronics – with the EU increasingly demanding compliance from non-European sellers as well. It can also be assumed that the EU will monitor the development of similar measures in the US in the long term and respond in a coordinated manner to new trade trends.
10 How should Slovak companies prepare for the changes due to come into force from July 2026?
The first step is to review the existing supply chain – identifying what proportion of goods comes from countries outside the EU and how many customs nomenclature codes a typical order contains. On this basis, I recommend calculating the impact on the cost structure and pricing policy, and adjusting the product range or logistics processes where necessary before the new rules come into effect.
11 What will be the biggest practical change for businesses following the introduction of the new rules?
The biggest change will be that customs duty will cease to be 'something paid on more expensive imports' and will become a standard part of every order from non-EU countries. Businesses will need to factor customs costs into their calculations at the individual product level, not just as a flat-rate item at the level of the entire order. At the same time, the importance of correct customs classification of goods will increase – errors in customs nomenclature codes will have direct financial consequences. For online platforms and marketplace operators, this also means additional responsibility for customs duties as well as VAT.
