New EU Customs Rules for Low-Value Shipments Start November 1, 2026

Starting November 1, 2026, every low-value B2C parcel entering the European Union must include Product Identifiers (PIDS) for each item. A new €2 customs handling fee also applies to each declaration line. "Low-value" means an intrinsic value under €150.

If you ship from Canada to customers in the EU, these rules affect your product data, landed costs, and EU pricing. This guide explains what is changing, what it costs and what to do before the deadline.

Key Changes at a Glance

Missing or incorrect PID information may delay customs clearance.

What Is A Product Identifier (PID)?

A PID is a product-level code that tells EU customs what is in the parcel. It supports product traceability, risk assessment and product safety checks. For each product line you declare, up to three PIDs apply:

• Merchant PID (M-PID, customs code C127). Your own SKU or product reference. This is the code you or your sales platform use to identify the item.
  
  
• Non-standardized Manufacturer PID (NS-PID, customs code C128). The manufacturer's model or variant number. It is usually printed on the packaging or product label.
  
  
• Standardized Manufacturer PID (S-PID, customs code C129). A globally recognized barcode number, such as a GTIN, EAN, UPC or ISBN, where one exists.
  

Each PID can be up to 70 characters. Most of this information is already on your packaging or in your store's product catalogue.

Which PIDS Are Required?

The required PIDs depend on the product type:

If a product has no standardized barcode, the declaration uses a standard “not available” code in its place.

How Your EU Landed Costs Change

Two charges apply per declaration line, in addition to destination VAT:

• €3 customs duty per line (in effect since July 1, 2026)
• €2 customs handling fee per line (new from November 1, 2026)
  

From November 1, 2026, a parcel with three different items carries €15 in duties and handling fees, plus VAT.

Here's an example:

An IOSS parcel cleared in the Netherlands (21% VAT). It has three items worth €100 in total: a yoga mat (€50), a water bottle (€30), and resistance bands (€20).

For IOSS shipments, the EU will not charge VAT on the duty or the handling fee.

The fees apply per line, not per parcel. A customer who buys three different items pays more in fees than a customer who buys one item. This matters most for stores with low average order values and multi-item carts.

What To Do Now

Start gathering PID data for the products you sell into the EU, so you are ready when the new fields go live.

1. Collect your SKUs. Make sure every product you ship to the EU has a unique SKU in your store or catalogue.
   
   
2. Find manufacturer model numbers. Check packaging, product labels or supplier spec sheets for the model or part number.
   
   
3. Record barcodes. Note the GTIN, EAN or UPC for each product where one exists.
   
   
4. Review HS codes and descriptions. Accurate, consistent customs data supports faster clearance.
   
   
5. Update your EU pricing. Include the €3 duty and €2 handling fee per line in your EU shipping rates or product prices.
   

What Stallion Is Doing

Stallion is working with our international partner carriers to implement these changes. We are updating our systems to capture PID information on your EU shipments. Once everything has been implemented, we will post further updates.

Questions? Contact your account manager or email [email protected].

Frequently Asked Questions

When do the new EU customs rules for low-value shipments start?

PIDs and the €2 handling fee start on November 1, 2026. The €3 duty per line has been applied since July 1, 2026.

Which shipments do the rules apply to?

They apply to all B2C parcels entering the EU with an intrinsic value under €150.

Do I need a barcode for every product?

No. A standardized barcode is required only where one exists. If a product has none, the declaration uses a standard "not available" code.

Are the fees charged per parcel or per item?

Both charges apply per declaration line, meaning per item in the parcel.

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.