The EU's New Tariff — How CJ Helps You Cope

What exactly is this €3 temporary flat fee?

This temporary €3 flat fee takes effect from July 1, 2026 to July 1, 2028. It cancels the old duty-free threshold for shipments under €150.

The core rule: charged per 6-digit HS tariff code, NOT per parcel or per individual item.

Multiple identical goods with different colors/sizes under one HS code = only €3 per parcel.

Mixed goods with different HS codes (e.g. T-shirts + shorts) = extra €3 for each separate HS category.

Labeling goods as a "set" on your store page cannot merge different HS codes to cut tariff costs; customs only judges by official HS classification.

Two key reminders

1.One key reminder: the €3 is charged per 6-digit HS code. In special cases where a parcel holds several different items with only one unit each, you may—under correct customs classification rules—declare them under one main HS category (counted as SKU × quantity), so the whole parcel triggers only a single €3 charge.

2.Just as important—once goods are imported and cleared, this €3 tariff is non-refundable, even if delivery later fails or the order is cancelled or returned. So accurate declaration and reliable last-mile delivery directly protect your margin

Key customs terms you need to know

IOSS: Import One-Stop Shop system, for pre-paying EU VAT on parcels under €150. You can also prepay this €3 tariff via IOSS for DDP delivery, so buyers pay zero extra fees upon receipt.

H7 Declaration: simplified customs form matched with IOSS, fast clearance for B2C retail small parcels.

Mandatory PID registration starting Nov 1, 2026: all goods shipped to the EU must complete PID filing for customs inspection.

Exclusive all-round solutions from CJ

1. We have partnered with a logistics provider that has launched a fully tax-inclusive B2C shipping solution for Europe.

We are currently integrating this service into our system, with VAT and the €3 customs duty already included in the shipping rate. This means you can continue shipping parcels one by one exactly as before, with no additional customs clearance process or operational changes required.

The estimated additional cost is only around €1.5–€2 per parcel, making it a highly cost-effective solution for maintaining smooth deliveries to Europe.

The new shipping channel is expected to be available early next week.

2. Some logistics providers are leveraging their global warehouse network to offer complimentary sorting and repacking services.

Multi-HS code products are separated into different parcels, while items within the same product category are consolidated into a single shipment whenever possible. This helps minimize or avoid additional €3 customs charges and keeps overall shipping costs competitive.

The entire process is handled automatically by the warehouse, requiring no additional effort from merchants. While this approach may help reduce certain customs charges, I generally do not recommend it.

3. Many sellers are choosing to bundle complementary low-cost items within the same category, creating higher-value offers that increase AOV and reduce customers' sensitivity to shipping-related price increases.

This strategy has been recommended by a number of experienced sellers and has proven effective in preserving both conversion rates and overall profitability.

4. CJ has recently opened its own warehouse in Germany and plans to launch another warehouse in Poland, alongside a network of partner warehouses across Europe and North America.

Merchants can import inventory in bulk through B2B customs clearance and stock products locally. This solution is best suited for sellers with a small number of SKUs and stable sales volumes, while generally being less suitable for apparel businesses with large SKU assortments.

Products stored in EU warehouses are not subject to the new €3 fixed fee on low-value parcels. Local fulfillment also enables faster delivery and provides value-added services such as labeling, quality inspection, and EU returns processing.

CJ has specialized in global dropshipping for over 10 years. We have experienced dozens of EU customs policy updates before. Relying on our global warehouse network, professional compliance teams and mature logistics systems, we can help all merchants smoothly adapt to this new rule.

If you still have confusion about tariff calculation, IOSS/H7 declaration, EU warehousing or cost control, leave your questions in the comment section below, cj's global support team will reply to every single one of you as soon as possible.