From 1 November 2026, EU customs will charge a flat €2 Union handling fee (UHF) per item on goods sold in distance sales. It comes on top of the €3 temporary customs duty that has applied since 1 July 2026. For a typical low-value IOSS parcel, that means €5 in customs charges per declaration line: €3 duty plus €2 UHF, both charged on the same declaration.
Parcels worth more than €150 sold in a distance sale do not pay the €3 duty, but they do pay the €2 UHF per declaration line, on top of normal duty.
This article is based on the European Commission guidance "The temporary EUR 3 customs duty and the Union handling fee: Guidance for Member States and Trade" (version of 5 October 2026). It is explanatory only and the legal texts take precedence. This is our current understanding and is subject to change.
Timeline
| Date | What changes | Charge |
|---|---|---|
| 1 July 2026 (in force) | €150 duty exemption abolished; €3 per item on distance sales up to €150 | €3 duty |
| 1 November 2026 (expected) | €2 per item on all distance sales, any value. Applies from the tenth day after the delegated act fixing the fee enters into force | UHF |
| 1 November 2026 | TARIC code Y126 becomes mandatory on H1, H6 and H7 declarations to trigger the fee | UHF |
| 1 July 2028 | €3 duty ends; all distance sales pay normal duty rates by value, origin and classification | €3 duty |
| 1 July 2028 | Lower UHF applies to goods sold from the new customs warehouses for distance sales | UHF |
The Commission was also due to assess by 1 October 2026 whether trade is being diverted to avoid the €3 duty and, if so, to propose extending it to all goods in consignments up to €150. The outcome is not yet known.
At a glance
| €3 temporary customs duty | €2 Union handling fee (UHF) | |
|---|---|---|
| What it is | Customs duty replacing the old €150 duty exemption | Fee for customs handling of each distance-sale declaration |
| Amount | €3 per item | €2 per item |
| Applies from | 1 July 2026 | 1 November 2026 (expected) |
| Applies until | 1 July 2028 (then normal duty rates) | No end date |
| Value limit | Consignments up to €150 only | Any value, if sold in a distance sale |
| Legal basis | Council Regulation (EU) 2026/382 | Article 20 of the new Union Customs Code, Regulation (EU) 2026/2108 |
| Refundable on return | Only under general refund rules (Article 116 UCC) | Never |
| VAT on top | Yes: the duty is part of the VAT taxable amount | Yes: the UHF is part of the VAT taxable amount |
The €3 temporary customs duty
Since 1 July 2026, goods sold in distance sales in consignments worth up to €150 pay a flat €3 per item, until 1 July 2028.
It covers:
- All goods imported under IOSS, whatever declaration type is used (H1, H6 or H7).
- All other distance-sale goods in consignments up to €150 (Special Arrangements or standard VAT), unless a preferential duty rate is claimed in an H1 declaration.
- Goods previously excluded from the exemption, such as alcohol, perfumes, toilet waters and tobacco.
Key terms:
- Intrinsic value: the price of the goods themselves, excluding transport and insurance (unless included in the price and not shown separately) and other taxes and charges.
- Consignment: goods sent by one consignor to one consignee under one transport contract. Separately ordered or shipped parcels are separate consignments, even if they arrive on the same day. Orders from two consumers are always two declarations.
- Item: goods in a consignment that share the same tariff classification, description and, where declared, origin. In practice, the duty applies per declaration line, whatever the quantity on that line. Grouping lines under the highest duty rate is not allowed.
The €2 Union handling fee (UHF)
From 1 November 2026, EU customs authorities start collecting a flat €2 per item for handling the release of goods sold in distance sales.
- Any value: unlike the €3 duty, the UHF also applies to consignments above €150, as long as the goods were sold in a distance sale.
- Per item: counted per declaration line, whatever the quantity, in the same way as the €3 duty.
- Even with preferential origin: goods paying a preferential duty rate still pay the UHF.
- Permanent: there is no end date. From 1 July 2028 a lower amount is planned for goods sold from a customs warehouse for distance sales.
- When it is due: when the customs declaration is accepted, in the EU country where it is lodged.
- Non-refundable: the fee stays due if goods are refused after acceptance, if the declaration is later invalidated, or if goods are returned. It is only not due if the declaration is never accepted.
What counts as a distance sale: goods supplied by a business (including a marketplace acting as deemed supplier) to a private customer in the EU, while the goods are outside the EU, and shipped by or on behalf of the seller. Goods sold to consumers before being stored in an EU customs warehouse for final distribution are also covered. Combining distance sales into one bulk import does not avoid the charges: customs treat each underlying sale separately.
How the two charges are counted
Both charges are triggered on the same import declaration, counted on the same declaration lines and owed by the same declarant. They are charged per declaration line, not per parcel and not per unit. On H6 and H7 declarations they are calculated automatically as number of lines × amount.
Worked examples (customs charges only, before VAT)
| Shipment | Declaration | €3 duty | UHF | Total customs charges |
|---|---|---|---|---|
| €40 IOSS parcel, 1 product | H7, 1 line | €3 | €2 | €5 |
| €120 parcel, 5 identical units | H7, 1 line | €3 | €2 | €5 (quantity does not matter) |
| €140 IOSS parcel, 3 products with different tariff codes | H7, 3 lines | €9 | €6 | €15 |
| €120 parcel, standard VAT, preferential origin claimed | H1, 1 line | Preferential duty rate instead of €3 | €2 | Preferential duty + €2 |
| €400 distance sale, 2 tariff lines | H1, 2 lines | Normal duty | €4 | Normal duty + €4 |
| €100 B2B purchase (not a distance sale) | H1 | Normal duty | None | Normal duty only |
A preferential rate can only be claimed in an H1 declaration, and only when IOSS is not used. Every IOSS import pays the €3 duty.
Why grouping matters. How items are grouped into declaration lines in your logistics chain decides how much you pay. For example, three books printed in the UK, China and the USA, all under HS code 4901 99:
- In an IOSS parcel, they can be grouped into one line regardless of origin: €5 in total (€3 duty + €2 UHF).
- In a DDP parcel over €150, they cannot be grouped, because origin is declared and differs: €6 in UHF (3 × €2), plus normal duty.
Who pays
The declarant owes both the €3 duty and the €2 UHF. Until 30 June 2028, the declarant is, in this order:
- The IOSS holder, or its indirect representative.
- If IOSS is not used: the Special Arrangements user, or its indirect representative.
- Otherwise: the importer's indirect representative, usually appointed by the carrier.
- Only as a last resort, and never with IOSS: the consumer, where the EU country offers a free online declaration.
In practice, if you want your customers to have a true delivered-duty-paid experience, you need to collect both the €3 duty and the €2 UHF at checkout and make sure your logistics chain pays them to customs on your behalf.
If you ship through postal channels, keep monitoring how your postal operator handles prepaid duty (PDDP), as coverage varies by country. EAS also offers its own postal solutions: EAS EU DDP, and Swiss Post DDP for selected Swiss merchants.
VAT on the charges
IOSS parcels (€150 or less): if you collect the €3 duty and the €2 UHF from your customer at checkout, both are subject to VAT and are reported in your IOSS return. If you do not collect the €2 UHF at checkout for IOSS parcels, the UHF is not subject to VAT, but it is then payable at customs by the end customer.
Parcels over €150: the €2 UHF forms part of the value for import VAT and is subject to VAT.
Returns:
- The €3 duty can only be recovered under the general customs refund rules (Article 116 UCC), which are normally not available directly to merchants.
- The €2 UHF is never refunded.
- VAT on the €3 duty and the €2 UHF is recoverable on IOSS parcels as part of your normal VAT return.
- For parcels over €150, recovery depends on the logistics procedure used. Users of EAS EU DDP and Swiss Post DDP can recover the VAT on the €2 UHF.
Checklist
- Budget €5 per tariff line for parcels of €150 or less (€3 duty + €2 UHF), plus VAT where you charge them at checkout.
- Budget €2 per tariff line on distance sales above €150, on top of normal duty, and check your landed cost allows for it.
- Provide accurate tariff codes and descriptions. The number of declaration lines drives both charges.
- Check that items with the same HS code are grouped correctly in your supply chain. Users of EAS EU DDP and Swiss Post DDP have items grouped into HS lines automatically.
- If you use IOSS and charge the UHF to customers, include it in your IOSS VAT return.
- Provide product identifiers (M-PID, NS-PID, S-PID) for each item.
- Plan for returns: the UHF is not refunded, and the €3 duty only under general refund rules.
EAS checkout and landed cost
EAS will support calculation of both the €3 duty and the €2 UHF in the EAS landed cost, through the WooCommerce plugin and the EAS API. We expect commercial e-commerce platforms to update their own landed cost solutions to allow collection of the €2 UHF.
Related reading
- The €3 EU Customs Duty from 1 July 2026: What We Know So Far
- Setting up €3 EU customs duty collection: Shopify, WooCommerce and EAS API
- Royal Mail PDDP limitations: EU countries where the €3 duty is not prepaid
Sources
- European Commission: The temporary EUR 3 customs duty and the Union handling fee, Guidance for Member States and Trade (version of 5 October 2026)
- EU Customs Reform, European Commission
- Council Regulation (EU) 2026/382
Questions? Email support@easproject.com or schedule a meeting with EAS.