Product Identifiers (PIDs) Explained: What Every Retailer Shipping to the EU Needs to Do Before the 1st of November

From the 1st of November, every item shipped to an EU customer needs product codes on its customs declaration

Retailers selling to EU customers from outside the EU face a change on the 1st of November that will affect the parcels they send. From that date, customs will expect product identifiers (PIDs) to be declared for every item in B2C consignments worth €150 or less. These are codes most retailers already use to run their business, such as SKUs, suppliers’ product codes and barcodes. What’s new is that they now have to reach customs.

Providing PIDs has been optional since 1st July, with no penalty for missing or incorrect data. That changes on the 1st of November, when enforcement begins, and any declaration with missing or incorrect data can be held or rejected. The timing adds pressure, because the deadline lands just as peak season starts. Retailers unable to adjust their logistics in time risk delayed deliveries, unhappy customers and extra work for support teams during the busiest weeks of the year.

The aim behind the new rules is better traceability of products sold online, helping customs spot non-compliant goods more easily. For retailers, the practical question is how to get product data from the catalogue to customs in time.

4.6 billion parcels a year: why the EU wants to know what’s inside each one

The European Commission reports that around 4.6 billion low-value consignments entered the EU in 2024, about 12 million parcels a day and twice the volume of the year before. Around 91% of ecommerce shipments valued under €150 came from China. A large EU customs control operation found that a high percentage of low-value goods imported directly to consumers did not comply with EU product and safety rules.

PIDs are not the only change retailers need to plan for. A temporary €3 customs duty has applied to each item in consignments of €150 or less since 1st July 2026, and it will run until 1st July 2028, when the EU Customs Data Hub is scheduled to launch. On top of this, a €2 Union handling fee is expected from the 1st of November, charged per item on distance sales of any value.

Each product needs a seller’s code, a supplier’s code and a standardised code where one exists

The three PIDs identify the same product in different ways. Most retailers will already hold some of this information in their product catalogue, but each code needs to be recorded in the correct field and passed on with the shipment.

M-PID: the code used by the seller

The Merchant Product Identifier is the code assigned by the retailer, marketplace or selling platform. This will usually be your SKU, item code or listing ID. It identifies the product within your own catalogue and is mandatory.

NS-PID: the code used by the manufacturer or supplier

The Non-Standardised Manufacturer Product Identifier is the manufacturer’s or supplier’s own reference for the product. This could be a model number, style code or supplier SKU. It is also mandatory, so retailers should check their supplier records and request any missing codes.

S-PID: the recognised standardised code

The Standardised Manufacturer Product Identifier is a recognised code such as an EAN, GTIN or ISBN, often shown beneath a product’s barcode. It must be provided where one exists. If the product has no standardised identifier, the customs declaration must use exception code Y081 instead.

For example, a retailer selling a lamp might have its own SKU, the supplier’s model number and an EAN printed on the packaging. These correspond to the M-PID, NS-PID and S-PID respectively. The aim is to connect those existing references to the product being declared.

For shippers, the challenge is getting product data all the way to customs

For most businesses, the challenge is data, not paperwork. Product information has to flow from the seller or marketplace to the customs declarant, and the declarant is responsible for the accuracy and completeness of what is declared. Three questions are worth asking before the 1st of November:

1. Is the data in place? Every SKU shipped to the EU needs an M-PID and an NS-PID, plus an S-PID if one exists.
2. Can it travel? The codes need to move from the store or warehouse system through the shipping software to whoever lodges the declaration.
3. Is it the right code? The M-PID should be unique on each platform, and reporting batch-level or unit-level identifiers where a model-level one exists counts as an infringement.

Customs charges depend on how products are grouped, so one parcel can attract several fees

Alongside PIDs, retailers need to account for changes to EU import costs. Where the temporary €3 customs duty applies, the additional €2 Union handling fee expected from the 1st of November brings the combined charge to €5 per customs declaration line, before VAT and any carrier charges.

A declaration line can cover several units of the same type of goods, so these charges are not necessarily applied to every individual product in a parcel. However, goods with different tariff classifications or origins may need separate lines, increasing the total cost.

The declaration type also affects how goods can be grouped. Retailers should ask their carrier or customs broker which procedure is used, how their products are grouped and what charges apply. Checking this now will help avoid unexpected costs during peak season.

A held parcel means a late delivery, and the run-up to Christmas is the worst time for it

The Commission itself acknowledges that a declaration can be held or rejected for failing to meet the PID requirement. Enforcement begins on the 1st of November, just as peak season gets under way. Retailers who haven’t organised their product data by then are likely to see delayed deliveries at the point customers are most sensitive to them.

For customers, that means late orders, extra follow-up emails and, potentially, costs passed on to buyers. For retailers, it means more support enquiries and a greater risk of missing Christmas delivery dates, all during the busiest weeks of the year. Fixing the data now is far easier than fixing it once parcels are already being held.

How you submit PIDs depends on your carrier and shipping system

Having the codes in your catalogue is only part of the preparation. Retailers also need to check how their carrier receives the information and whether their shipping system can send it in the required format.

FedEx recommends submitting PIDs electronically through FedEx Ship Manager or its API. Shippers continuing to use FedEx WebServices should include the codes on their commercial invoice or other shipping documents, as WebServices is no longer being updated.

If you use shipping software or another third-party provider, confirm which PID fields are supported and whether any changes are needed to your current process. Before peak season gets underway, check that all required codes reach the carrier and are available for customs clearance.

Shiptheory is making PID compliance simpler, with carrier updates, bulk uploads and direct support

Shiptheory is making the process as simple as possible for its customers. All carrier integrations are being updated so that the new codes can be sent to carriers in the shipment booking data, and the CSV product uploader has already been updated so that codes can be bulk uploaded to each product in the Shiptheory catalogue.

Channel integrations are also being updated so that, where the codes are stored in the sales channel, they can be passed through to Shiptheory. This work is unlikely to be finished by the 1st of November, so the CSV uploader is the quickest route in the meantime. Shiptheory are also contacting every customer who has booked a shipment from a non-EU country to an EU country in the last 90 days, so that everyone is aware of the change and supported with any action needed to stay compliant.

Check the product data and shipping setup now, before the 1st of November

The PID requirement is a small data change with a large operational impact. With 4.6 billion low-value parcels entering the EU in a single year, it’s understandable that customs want clearer information about what’s inside them. The businesses that cope best on the 1st of November will be the ones that have already tidied their product data and tested it end to end. With peak season about to begin, there is little time to leave this, so the catalogue and shipping set-up should be checked now and any gaps fixed.

If you're already a Shiptheory customer, get in touch with our team to see how we can help you build this level of compliance into your everyday shipping process.

If you're not yet using Shiptheory, book a free demo today and see how shipping automation can take compliance off your team's plate and keep it running with every shipment, automatically.

You can contact us at support@shiptheory.com or call +44 117 403 4313 / +1 629 666 6726.