EU Customs Changes For Low-Value Shipments

Are you shipping to customers in Europe? If yes, two upcoming changes will affect your shipment costs. Here is a clear breakdown of what is changing, when it takes effect, and what it means for you as a Stallion user.

What Is Changing

Starting July 1, 2026, the European Union (EU) will remove the existing customs duty exemption for shipments valued under €150. Currently, packages below this threshold can enter the EU without incurring customs duty.

That exemption is going away.

In its place, a flat €3 customs duty fee will apply to shipments valued below €150, charged per declaration line on the customs manifest.

Starting November 1, 2026, shippers may expect to pay an additional €2 customs handling fee. While the final confirmation is still pending, the aforementioned amount will also be per declaration line. No VAT will apply to this handling fee.

What Is A Declaration Line

A declaration line is a group of one or more items that share all three of the following:

• The same HS code
  
• The same product description
  
• The same declared value
  

Each unique combination counts as a separate declaration line, and fees are applied per line.

How the Fees Apply

The collection process for these fees depends on whether your shipment uses IOSS. Here is what to expect in each case.

DDU Shipments With IOSS

If you ship DDU (Delivered Duty Unpaid) and use IOSS, the fees will be collected at the time of label purchase on the Stallion platform:

• €3 customs duty fee (effective July 1, 2026) plus a 5% administrative fee on that charge
  
• €2 customs handling fee (expected November 2026)
  

These charges will appear as a separate line item when you purchase your label.

DDU Shipments Without IOSS

If you ship DDU without IOSS, your recipient will be responsible for paying all applicable charges before their parcel is released for delivery:

• €3 customs duty fee
  
• €2 customs handling fee (expected November 2026)
  
• Applicable VAT, calculated on the customs value of the shipment plus the €3 customs duty fee
  

No additional customs duty will be charged to you when purchasing labels for these shipments.

Undeliverable or Returned Shipments

If a parcel is returned or cannot be delivered, VAT, customs duty fees, and customs handling fees are non-refundable by Dutch Customs or PostNL.

When Will Stallion Implement These Shipments

Because the EU policy applies to all shipments entering the EU starting July 1, 2026, we will implement the changes on our platform one week earlier, on June 22, 2026. This gives us time to ensure that affected shipments are charged the correct duty fees upfront and reduces the risk of customs duty adjustments after the fact.

If you have questions about how these changes affect your shipments, reach out to the Stallion support team.

Jose Sagun

Jose is Stallion's Senior Business Analyst. He helps improve the company’s shipping processes, works closely with delivery partners, and looks at shipping data to find the best prices for our customers. Outside of work, Jose has a passion for running, regularly completing 5k and 10k runs, with the goal of running a full marathon in the near future.