From 1 July 2026, every parcel valued under €150 entering the EU will carry a €3 customs duty.

Here at RepGuardia we offer an EU Representation service specifically designed to fulfill GPSR compliance requirements.

The €3 levy is separate from GPSR, but we are still aware that all costs have to be considered by small businesses when they think about selling into a new territory, and that the €3 levy alongside GPSR, packaging requirements and more, all add up. 

So if you sell into Europe, or you were thinking about it, you've probably seen this news. And if you're a small business, you might be wondering whether EU sales are still worth pursuing with yet another barrier.

We think still they are. Here's why.

What the €3 levy actually is

Whilst we know it feels like another layer of unnecessary bureaucracy and paperwork, the EU introduced this charge to level the playing field.

Around 4.6 billion low-value parcels entered the EU in 2024, with 91% coming from China. Platforms like Temu and Shein were shipping duty-free at enormous scale, undercutting EU-based sellers on price.

This levy aims to close that loophole and make buyers think twice about where they spend their money and the amount they consume (and that we ultimately know often goes into landfill).

It's important to note that the levy applies per parcel (not per item type in most cases), it applies to non-EU sellers registered under the EU's IOSS system for VAT, and it sits on top of VAT, which continues to apply as normal.

Who actually pays the €3 levy? 

This is the part that surprises most business owners. The €3 is a customs charge on the import.

You, as the seller, are not automatically obligated to absorb it. We're seeing a lot of small business owners saying that "it's getting more expensive to trade in the EU" when they hear about this - but this fee isn't meant to be paid by you as the product manufacturer and seller.

The standard approach is to pass it to the customer at checkout, either built into your pricing or shown as a separate line, just like an admin or postage charge.

Most e-commerce platforms can accommodate this. Your customer sees a small, clearly explained charge. You don't take a hit on your margin.

What this means for handmade, independent, and small-batch sellers

Look, we're under no illusions here that to your customers, it makes your already higher price items even more expensive for them to invest in. And you're concerned it will put people off.

A €3 charge on a parcel from a UK maker selling handmade goods into Europe is of course not the same thing as a €3 charge on a parcel of low-cost plastic items from a warehouse in Shenzhen. But the rule applies to both.

What this does, though, is shift the ground slightly.

Customers who were choosing cheap imports partly because they were cheap now face a small but real additional cost.

Customers choosing you (because you have loyal, dedicated and values driven audiences) were already choosing quality, craft, and intention when they invested with you.

For them, €3 is unlikely to be the deciding factor.

If anything, this levels the playing field a little more in your favour.

Turn the €3 into a talking point

Some sellers will absorb the €3 quietly and say nothing. You don't have to.

At our recent free GPSR Step-By-Step Guide webinar, we talked to our attendees about how they could use the €3 levy as a talking point about how they craft their products and why they're different from the likes of mass produced Temu or Shein items.

We're not here to dish out marketing advice - we're here to get you GPSR compliant.

But as small business owners ourselves, we understand that communicating your values and differentiating points to your competitors is a real win for loyalty and trust in your brand. 

A short, honest note on your product page or at checkout, and/or a social media post or shot your mailing list explaining the charge and why it exists, gives your customers context and reminds them what they're actually buying.

You're not a Temu seller. You're not shipping mass-produced goods from a warehouse. You make something considered, something with care behind it, and your EU customers chose you knowing that.

The €3 is a customs charge that applies to everyone shipping into Europe from outside the bloc. The difference is that for you, it sits alongside a product worth paying for. 

What about the handling fee?

You may have seen references to an additional €2 customs handling fee. This is a separate proposal, still under negotiation, and not yet finalised. It's worth monitoring, but it's not in force yet.

Should you still try to sell in the EU? 

We really believe that the €3 levy is not a reason to step back from EU sales.

It's a compliance detail to plan for, and a relatively small one. Your bigger obligations, including having an EU Authorised Representative in place under GPSR, remain just as relevant and are entirely separate from this customs change.

If you're not yet set up for EU sales and want to understand what's required, we can help.