De Minimis is Ending in the EU: What This Means For Your Business

What's Changing – and Why it Matters

For the past 15 years, Europe's de minimis rules have allowed low-value packages to cross borders with little to no duty or customs paperwork. Now, de minimis is ending in the EU: as of 1st July 2026, the exemption has been scrapped. And Europe isn't alone – governments across the world are tightening and changing the rules on low-value imports, reshaping how cross-border e-commerce works. Source

In 2025 alone, almost 5.9 billion low-value shipments entered the EU without paying any customs duties. This put EU retailers at a disadvantage and left too many opportunities for fraud, meaning that from 1st July 2026, a fee of €3 per item category is being applied as a stopgap until the EU implements the EU Customs Data Hub in July 2028. This will apply standard duty rules based on the product’s classification, origin and value. If businesses haven't budgeted for the higher duty expenses, this could take them by surprise.

Under the new rules, every package valued at €150 or under must have a Product Identifier (PID) attached to it. The PID data consists of the merchant product identifier, the manufacturer product identifier and, where available, a standardised product identifier (such as a GTIN), allowing customs to identify exactly what the product is and who made the item. PID came into effect voluntarily on the 1st July 2026 and will be made mandatory from the 1st November 2026. Targeted inspections across the EU in 2025 found that most checked products failed to meet safety or compliance standards, from missing labels to banned ingredients. Better product data means customs can actually catch those items at the border.

The US pulled the plug on its own exemption in August 2025, the UK's £135 threshold is on its way out by 2029, and Thailand, Canada and Japan are all somewhere along the same path. The common thread is less tolerance for low-value goods slipping through with minimal scrutiny. Source

The Operational Impact on your Business

Compliance now demands full, accurate product data on every SKU, and non-refundable duties on low-value shipments mean businesses need to rethink margins, returns policies, and checkout pricing to avoid delays and unhappy customers. For merchants shipping internationally, this change adds operational complexity. Every stock-keeping unit (SKU) now needs accurate, audit-ready product data. That includes harmonised system codes, country of origin, declared value and, under the new EU rules, a merchant product code, manufacturer identifier and, where available, a standardised barcode. FedEx has advised that voluntarily following the new rules from July is the best way to avoid any clearance delays once enforcement begins in November. Margins will need to be rethought as well - duties that didn't apply to low-value parcels can now eat into profits, since they aren't refunded when a customer returns the item, making unlimited free returns a riskier proposition.

The Customer Experience is Changing Too

For consumers, the biggest risk is unexpected charges on delivery. When duties aren't paid upfront, customers may be asked to pay additional fees before receiving their parcel. This can lead to frustration, abandoned parcels and longer delivery times as customs checks become more thorough. The businesses that plan for these changes and voluntarily follow the rules from July will be able to show the full landed cost at checkout, meaning customers know exactly what they'll pay before ordering, improving customer loyalty. Source

How Shiptheory Simplifies Compliance

Compliant shipping shouldn't mean more work for businesses sending out their products. Shiptheory automates the paperwork and carrier logistics behind every shipment. Labels, invoices, and routing all happen automatically, so compliance becomes part of the process instead of extra manual work, backed by a SWAP integration that locks in full landed costs upfront to avoid border surprises. Shiptheory automates label creation, commercial invoices, carrier selection and routing across hundreds of carriers like FedEx, UPS and DPD, ensuring the right paperwork and information are sent with every shipment, reducing the time spent on manual administration. Automation is exactly what businesses need as compliance requirements get more demanding. Less time spent on admin for each order allows for fewer opportunities for errors that could cause shipping delays. Shiptheory also integrates directly with SWAP, a company that guarantees the full cost of a shipment, including duties, taxes and fees, upfront, so there are no surprises at the border, creating a smoother delivery experience for both businesses and their customers.

Staying Ahead of the Curve

De minimis wasn’t a secret in the ecommerce industry; instead, it was the backbone of low-cost, high-volume cross-border ecommerce for over a decade. The abolishment of the exemption marks a shift in how international shipping works. With PID becoming mandatory in November and other global markets moving in the same direction, businesses that do not stay ahead of the curve risk falling behind as customs continue to tighten the rules and regulations.

The retailers who continue to scale and succeed won’t be reacting to each deadline but instead will have already built compliance into their everyday shipping process. Setting a high standard with accurate product data, full landed costs being visible at checkout, and no surprises for consumers at their door. Getting to that point doesn't have to mean increased manual hours for teams; with the right systems in place, compliance can happen automatically with every shipment, not a separate task added on top.

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.