Question 1

What is changing with EU customs duties for e-commerce in 2026?

Accepted Answer

Starting July 1, 2026, the EU is removing the €150 customs duty exemption for low-value e-commerce parcels. A temporary €3 customs duty per item will apply for shipments under €150 when VAT is settled via IOSS. This means all goods shipped to EU consumers will incur customs duties regardless of value, significantly impacting dropshippers and cross-border sellers.

Question 2

What is IOSS and how does it work for cross-border e-commerce?

Accepted Answer

IOSS (Import One-Stop Shop) is the EU's VAT simplification scheme for e-commerce shipments under €150. Sellers register in one EU member state, collect VAT at the point of sale, and remit via a single monthly return. IOSS eliminates surprise VAT charges for consumers and speeds up customs clearance, but does NOT exempt shipments from the new 2026 customs duties.

Question 3

How do I find the correct HS code for my product?

Accepted Answer

To find the correct HS (Harmonized System) code: start with the WCO HS Nomenclature tool, cross-reference with your country's tariff schedule (e.g., TARIC for EU, HTS for US), use classification ruling databases for precedents, and when in doubt, request a binding tariff classification from your customs authority. Incorrect HS codes can result in overpaid duties, seizures, or penalties.

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