8 days remaining. On July 1, 2026, the European Union will officially end the tariff exemption for imported goods valued at less than 150 euros.

All orders shipped directly to consumers from outside the EU are subject to a fee per item of3 euros import feeThe

Starting November 1, additional fees will be charged for FBA shipments2 euros per itemCustoms fees.

This is not a draft for public comment—the Council of the European Union formally approved it in February of this year. This applies to all platforms operating on European marketplaces, including Amazon, Temu, and SHEIN.

💡 Still unsure how much profit margin your European operations will have under the new regulations? Add the note “EU Calculation” to have us calculate the incremental cost per SKU and assess whether switching to local delivery is cost-effective.

Cell phone: 18676749275 ｜ WeChat: qcygscszk

01 First, let’s get one thing straight: What isn’t affected?

Your inventory is already within the EU (in an overseas warehouse or FBA warehouse), and orders are shipped from within the EU after a customer places an order—so this will not affect you.

The new regulation applies only to one scenario:The goods are shipped directly to consumers from outside the EU. Covers FBM self-delivery, direct shipping via third-party logistics, and FBA remote fulfillment (cross-border direct shipping from overseas warehouses).

Goods valued at 150 euros or more are already subject to normal customs duties, so the new regulations do not impose any additional burden.

The most affected items are low-priced goods valued at less than €150 that are shipped directly from China to consumers in the EU. If your main SKUs sell for €10–€50, and €3 accounts for 6%–30% of the selling price—that’s not a “fine-tune”; it’s a change at the cost structure level.

02 FBM vs. FBA: How Much Have Costs Increased?

Fulfillment by Seller (FBM): Effective July 1

A mandatory import fee of 3 euros will be charged for each package valued at 150 euros or less. If a single package contains items with multiple HS codes, the fees for each category will be cumulative.

Standard Policy for Logistics Providers: Customs duties are initially paid in advance by the logistics provider,All costs associated with the new tariffs will be borne by the seller. It’s not a matter of whether you choose “tax-inclusive or tax-exclusive”—the cost is already on you.

FBA Sellers: Two-Stage Price Increase

• July 1–October 31: FBA shipments are not subject to the 3-euro-per-item fee (bulk warehouse intake does not currently trigger direct shipping to consumers).
• Effective November 1: An additional customs processing fee of 2 euros per item is charged for FBA shipments. If your goods are first sent to an FBA warehouse and then shipped to the customer, the cost per item = 3 euros in import fees + 2 euros in processing fees = 5 euros

Let's do the math

European marketplace with 2,000 orders per month and an average order value of 25 euros:

• Before July 1: Additional cost: 0
• After July 1 (FBM): 2000 × 3 = 6,000 euros per month
• After November 1 (FBA): 2000 × 5 = 10,000 euros per month

Per year: 72,000 to 120,000 euros.

03 Three Steps You Need to Take Now—or It’ll Be Too Late

Step 1: Immediately adjust pricing and the SKU structure

The 12%, priced at 3 euros, accounts for 25 euros of the total price. If the price of the 12% is raised directly, conversion rates for price-sensitive product categories will drop.

It is recommended to sort by type:

• High-margin SKUs (gross margin > 40%): Partially offset costs; a slight increase of 3%–5% to maintain order volume
• Low-margin SKUs (gross margin < 20%): Either raise the price to a profitable level or discontinue them. For traffic-driving items priced under €10, adding €3 leaves virtually no profit margin—don’t try to keep them afloat.

At the same time, adjust the shipping rate template. Don’t make consumers feel that “the product has gotten more expensive”; instead, make them feel that “the rules for cross-border shipping have changed”—the psychological acceptance is completely different.

Step 2: Decide whether to switch to local delivery within the EU

Under the new rules, local shipments are not allowed.

Goods are in a European overseas warehouse → Consumer places an order → Local delivery. The €3 import fee has nothing to do with you.

Amazon data shows that local delivery within the EU can save up to 53% in shipping costs compared to cross-border shipping, with local deliveries arriving in 1–2 days versus 4–6 days for cross-border shipments. Sellers who are able to do so should plan ahead by setting up overseas fulfillment centers or using FBA to store inventory in local European warehouses.

But switching to local fulfillment means taking on inventory and extending cash conversion cycles. Calculate the total cost of warehousing fees plus days in inventory before making a decision. Don’t spend an extra 5 euros on warehousing just to save 3 euros.

Step 3: Hurry up and sign up for IOSS

IOSS (Import One-Stop Service) is a declaration system established by the European Union to support the new regulations.

• IOSS number: Consumers can see the tax-inclusive price when placing an order, so they won’t be subject to additional taxes upon delivery, and customer complaints can be managed effectively.
• No IOSS: Consumers are being required by customs to pay additional taxes and fees upon receiving their packages. Return rates are skyrocketing, and account performance is declining—the costs go far beyond just 3 euros.

You can register for IOSS through your VAT service provider. If you won’t be able to complete registration by July 1, make sure to sort out the goods’ values and HS codes first—these must be in place before the FBA phase begins in November.

💡 Still unsure how much profit margin your European operations will have under the new regulations? Add the note “EU Calculation” to have us calculate the incremental cost per SKU and assess whether switching to local delivery is cost-effective.

Cell phone: 18676749275 ｜ WeChat: qcygscszk

04 There aren't many opportunities left for sellers

Under the new EU regulations, the cost of every cross-border package is rising, effective July 1.

It’s not a question of “whether you want to adjust it,” but rather “whether the profit on the books is enough to cover the cut.”

What we can do now:

• Item-by-Item Calculation: How much of your SKU's selling price is accounted for by the 3 euros? Which products can withstand this, and which ones should be cut?
• Evaluating Local Delivery: Would it be more cost-effective to ship to an overseas warehouse or an FBA local fulfillment center than to keep paying 3 euros?
• IOSS Wins: Without IOSS, the return rate resulting from consumers being taxed twice is much higher than the 3-euro cost you calculated.
• Notice to Consumers: Shipping Template Guidelines and Tax-Inclusive Price Display—Don’t Let Customers “Find Out at Checkout”; That’s When Cart Abandonment Begins

🔍 Cost Estimates for New EU Regulations

Not sure how much profit margin your European operations have left under the new regulations?

Note: “EU Calculations” — ① Calculate the incremental cost for each SKU based on your actual SKUs; ② Assess whether switching to local delivery is cost-effective; ③ Determine whether you need to retroactively register for IOSS and file VAT returns.

Qicaiying: One-Stop Solution for European VAT and IOSS Compliance

Under the new regulations, compliance for European operations has shifted from an “option” to a “matter of survival.” With 10 years of specialized experience in financial and tax compliance for cross-border sellers in the European market, Qicaiying can help you with the following:

• ✅ European VAT Registration and Filing—English, German, French, Italian, Spanish, Dutch, and Polish; full-site coverage
• ✅ IOSS Registration + Compliance Filing——Use IOSS Numbers Correctly to Avoid Double Taxation and a Flood of Customer Complaints
• ✅ Cost Estimates for New EU Regulations—An SKU-by-SKU Analysis to Help You Decide Which Products to Keep and Which to Cut
• ✅ Overseas Warehouses + Local Infrastructure—European Company Registration + Warehousing Compliance Solutions: Enabling Shipments Within the EU

About Enterprise Caiying Group

Established in 2015 and headquartered in Shenzhen, Qicaiying Group specializes in providing one-stop financial, tax, and corporate compliance services to cross-border e-commerce companies and businesses expanding overseas. Its services include Hong Kong and overseas company registration, bank account opening, cross-border financial and tax compliance, ODI filing, VAT/EPR registration, bookkeeping services, and corporate identity planning. Having served over 50,000 companies to date, it is a trusted financial and tax compliance partner for cross-border sellers.