Guest Blog: ILG

EU De Minimis Removal: What UK E-Commerce Brands Must Do Before July 2026

From 1st July 2026, low-value shipments of under €150 being shipped into the EU will no longer be duty-free at the border. For UK brands that sell direct to consumers (D2C) in the EU and are not currently fulfilling from mainland Europe, this could amount to a significant increase in duty charges.

In this article, we explain exactly how the new duty applies and why it’s important that high-volume UK D2C exporters act now to restructure their EU logistics.

Why the EU De Minimis Threshold is Being Removed

Post-Brexit, UK brands selling into the EU faced new tariffs and extra customs checks. However, goods valued at under €150 were exempted from customs duty, although they were still subject to VAT and customs declarations. Known as the de minimis rule, this opened the door to high volumes of low-value goods being shipped into the EU with little friction – a situation that the European Parliament has decided is no longer sustainable.

As well as launching a boom in D2C postal and small-parcel deliveries, creating volumes that EU customs was struggling to handle, the de minimis rule was exploited by some sellers undervaluing their goods to stay below the threshold, thus making it harder for EU retailers to compete. In November 2025 the EU Council announced that it was removing the threshold as part of a wider programme of customs reforms.

From 1st July 2026, the de minimis exemption will be removed for goods entering the EU and a fixed duty of €3 will apply to exported goods valued at less than €150.

As part of the wider reforms, a proposed EU handling fee for low value shipments may also be introduced, separate from the new customs duty.

Putting a Value on the Impact of the New EU Customs Ruling

When it comes to assessing the impact on UK companies exporting to the EU, it’s important to note that the €3 duty is expected to apply per item, based on tariff classification (CN codes). Therefore, orders that contain multiple items with different CN codes may incur the €3 charge several times over. For sellers that have been shipping high volumes of low-value goods duty-free, this could be a game changer in terms of shipping costs.

Responsibility for paying customs duties depends on the International Commercial Terms (Incoterms) applied to the shipment. For shipments that are Delivered Duty Paid (DDP), the shipper pays the duty. For non-DDP shipments, the duty is payable by the customer. Either way, the impact on UK vendors and their EU-based customers will be considerable and we advise you to look at your options ahead of the July deadline.

Why Fulfilment From Within the EU is More Cost-Effective

Since Brexit, many UK e-commerce businesses have put off scaling into Europe because of the perceived cost and bureaucracy of exporting to the EU. Those that have decided to do business in Europe have found that relocating stock to warehouses within the EU helps to mitigate import issues on an order-by-order basis.

The abolition of the €150 duty-free threshold is another good reason for UK businesses exporting direct to customers in the EU to move a portion of stock to Europe. This is where your 3PL partner can really come into their own.

ILG’s storage and fulfilment facilities in Wroclaw, Poland, are perfectly positioned to reduce friction on D2C sales from UK businesses into the EU.

Smoothing Out EU Logistics – The Power of Poland

Before the Brexit deal was announced, we anticipated the logistical problems it would cause for UK businesses selling into the EU and started laying the groundwork for our own storage and fulfilment facility within the bloc. We chose Wroclaw, Poland, as an ideal location, being close to Germany (the largest e-commerce market in the EU) and having fast transport links to population centres across mainland Europe.

We also knew that there was an abundant local resource, with which we already had good relationships, meaning we could access the skills and experience needed to mirror the standard of our UK services, thus providing a seamless experience for our clients and their customers. Quality control, customer service and security are paramount and we manage our EU logistics and order fulfilment to exactly the same criteria as in the UK. We also offer local VAT advice, through our partners.

Since Brexit, ILG clients keeping stock with us in Poland have bypassed the double duty and customs delays experienced by other UK exporters to the EU, and we’ve been able to keep prices down and meet end customer expectations on delivery times.

A Smarter Way to Sell in the EU

Post-Brexit, it has become increasingly compelling for UK brands selling direct to EU customers to store and distribute stock from a location within the EU. The removal of the EU de minimis rule on goods valued at under €150 adds further weight to this strategy.

By moving stock to a storage and fulfilment facility within the EU, UK exporters can aggregate their customs obligations into single, large shipments, rather than incurring the cost, bureaucracy and potential delays that will arise as the new legislation clamps down on multiple low-value exports.

A well-equipped 3PL like ILG can make this happen for you, providing a smooth transition so you can bypass the growing friction of routine international shipping to Europe from the UK.

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