Starting July 1, 2026, the European Union is implementing one of the most significant changes to its customs framework in years. The long-standing de minimis duty exemption for shipments valued under €150 will be eliminated, replaced by a new flat-rate €3 customs duty per declaration line. For cross-border e-commerce sellers shipping from Japan to EU customers, this change demands immediate attention. This guide explains what's changing, what it means for your business, and what you should do right now.
What's Changing? Understanding the de minimis Rule
The current rule (until June 30, 2026)
Under the current EU customs framework, shipments with a declared value of €150 or less are exempt from customs duties under the de minimis rule. This has allowed cross-border sellers shipping small parcels to European consumers to clear customs without paying import duties — a significant advantage for direct-to-consumer e-commerce from Japan. For sellers of apparel, accessories, beauty products, and other lower-priced goods, this exemption has been a meaningful cost advantage.
Changes effective July 1, 2026
From July 1, 2026, the de minimis customs duty exemption will be abolished. A new flat-rate customs duty of €3 per declaration line will apply to shipments valued under €150. The €150 threshold continues to define the scope of the low-value goods scheme, but it no longer means duty-free.
This change is part of the EU's broader Union Customs Code (UCC) reform, driven by the explosive growth of low-value parcel volumes from international e-commerce — and the resulting pressure on customs authorities to process unprecedented parcel volumes while maintaining revenue collection.
Product Identifier (PID) Mandatory Requirements
Three types of PIDs
The new customs framework introduces mandatory Product Identifiers (PIDs) for EU-bound shipments. There are three categories:
- Merchant PID: A unique identifier assigned by the seller or e-commerce platform
- Non-standardised PID: An identifier that does not conform to established industry standards such as GTIN
- Standardised PID: An identifier conforming to GTIN standards (EAN/JAN barcodes, etc.)
Products with established GTIN barcodes can be declared under the Standardised PID category. Sellers who have not yet implemented barcode management for their products should prioritize this now.
FedEx deadline: June 15
FedEx Japan has announced that PID information will be required for all EU-bound shipments from June 15, 2026. Shipments without a valid PID risk being held at customs clearance. DHL and other major carriers are expected to introduce similar requirements. Contact your carriers immediately to confirm their specific PID submission requirements, data formats, and deadlines.
Why You Should Consider IOSS Registration
What is IOSS?
The Import One-Stop Shop (IOSS) is an EU VAT scheme that allows sellers to collect, report, and remit VAT on low-value imports at the point of sale rather than at the border. IOSS registration streamlines the customs clearance process and improves the buyer experience by making all taxes visible and collected at checkout.
How IOSS interacts with the new €3 duty
For sellers already registered with IOSS, the handling of the new €3 customs duty on sub-€150 shipments may differ from unregistered sellers. The specific interaction between IOSS VAT collection and the new flat-rate duty is still being clarified by carriers and customs authorities. Contact your freight forwarder or carrier for the latest operational guidance before July 1.
For sellers not registered with IOSS, the €3 duty will typically be charged to the recipient (your customer) upon delivery. This creates unexpected costs for buyers, increases the risk of parcel refusal, and can generate negative customer experiences that damage your brand in EU markets.
Practical Impact for Sellers Shipping from Japan
Impact on low-value EU shipments
If you ship products from Japan to EU destinations — Germany, France, Italy, Spain, the Netherlands, and others — here's what changes from July 1:
- Every shipment under €150 will incur a €3 customs duty per declaration line, regardless of product value
- Shipments containing multiple distinct product lines may generate multiple declaration lines, increasing the total duty owed
- Customers who were previously unaware of import duties will now face unexpected charges at delivery if no adjustments are made
Rethinking pricing and checkout
To protect the buyer experience and avoid delivery failures, consider one of two approaches:
- Bundle the duty into your selling price (DDP model): Absorb the €3 cost so buyers see a clean, all-inclusive price — better for conversion and customer satisfaction
- Disclose the duty at checkout: Clearly inform EU buyers that a €3 import duty will be charged separately upon delivery — transparent, but risks cart abandonment
Failing to address this change at all is the worst outcome: customers receive unexpected charges, refuse delivery, and leave negative reviews.
Recommended actions to take now
- Audit your EU shipment volumes and map which product lines and markets are affected
- Contact FedEx, DHL, and any other carriers you use to confirm PID requirements and deadlines (FedEx mandates PIDs from June 15)
- Evaluate whether IOSS registration is cost-effective given your EU sales volume
- Update your checkout pages and product listings to reflect the new duty structure
- Brief your customer service team so they can handle buyer inquiries about unexpected charges
Summary and Staying Informed with LogiWatch
The three key takeaways from the EU's 2026 customs reform:
- De minimis exemption ends July 1: A €3 flat duty per declaration line applies to all sub-€150 shipments — no exceptions
- PIDs are now mandatory: FedEx requires them from June 15, and other carriers will follow — non-compliance risks customs holds
- Act now, not later: Pricing adjustments, IOSS evaluation, and PID setup all take time — start this week
EU customs regulations continue to evolve as the UCC reform rolls out in phases. LogiWatch monitors official announcements from FedEx, DHL, Japan Post, and major customs authorities across the EU and US — delivering AI-powered analysis to your inbox the moment policies change. Subscribe free to stay ahead of logistics policy changes that affect your cross-border business.
※ This article reflects information available at the time of writing. Please verify the latest regulatory information with official government and carrier websites.