International Trade News December 2025
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EU Update: Fixed Customs Duty on Low Value Parcels w.e.f. 1st July 2026
From 1st July 2026, a fixed customs duty of €3 will apply to each individual item within consignments valued at under €150 entering the EU.
Currently, these low-value parcels enter the EU duty-free. The new measure has been introduced to address concerns around unfair competition, fraud, consumer safety and environmental impact.
Who does this apply to?
The €3 duty will apply to goods shipped by non-EU sellers registered under the EU’s Import One-Stop Shop (IOSS) for VAT.
This change is expected to impact approximately 93% of eCommerce flows into the EU.
The €3 duty will be applied to each different item, according to their tariff headings, contained in a consignment.
Does this change the EU-UK Trade and Cooperation Agreement (TCA)?
No. The EU-UK TCA is a free-trade agreement that provides for zero tariffs and zero quotas on goods traded between the UK and the EU if they meet the relevant rules of origin and other conditions. However:
TCA does not remove all customs formalities. Goods moving between the EU and the UK are still treated as moving between two separate customs territories with paperwork, checks and origin documentation.
The zero-tariff benefit applies only to qualifying goods that meet specific rules of origin to show they originate in the UK or EU
Saudi Arabia: New Mandatory Requirement w.e.f. 1st January 2026
What’s changing?
From 1st January 2026, all shipments to Saudi Arabia will be required to include a Saudi Short Address Code.
The Saudi Short Address Code has been introduced by Saudi Post (SPL) to standardise addressing and improve delivery efficiency by condensing a full address into a shorter, verified code used by government bodies and logistics providers across Saudi Arabia.
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