Please note: with less than 2 weeks to go, the EU has not yet finalised how this duty will work in practice, with some points still left to be clarified. Below is our current understanding and is subject to change.

What is the new €3 EU customs duty?

This is a temporary duty applied by the European Commission on goods purchased from outside the EU that is imported into the EU, applicable to packages valued at under €150. 

This temporary duty is part of the EU Customs Reform. In 2028, at the final stages of the reform, the €150 duty exemption will be removed, and VAT will be charged on all imports regardless of value.

But we cross that bridge when we come to it!

Coscraft will begin collecting this duty from Monday 22nd June 2026, as we've learned from the launch of IOSS that packages bought just before a customs change, if they arrive after the date, will still have the new rules applied to them.

How will the duty be paid?

The retailer (that's us) has to collect the duty when the customer checks out. It will not be collected by the post office when the customer receives the package.

At the time of writing, 17th June 2026, the next step is yet unclear. The presumption is that the carrier (ie postal service) will pay the duty first, then invoice the retailer for it.

How will the duty be calculated?

Officially, this is applied per product classification (HS codes).

• 5 wigs = 1 item type = €3
• 2 wigs + 1 fabric dye = 2 items types = €6

Product classifications are not always as simple as it looks. For example, cotton fabric and polyester fabric have different HS codes and therefore a package with both will cost an additional €6.

As our system currently can't accurately distinguish HS codes and apply that calculation during checkout, we will apply a flat £5 charge on top based on the average number of HS codes per order to the EU in recent months, plus the service charge for duty processing that the carrier will charge us.

The £5 charge will be folded into the shipping charge and will not be shown on a separate line. We are working on how to get it to show separately for transparency.

How about packages to France, which already has TPC added?

The Taxe sur les petits colis (TPC) is a €2 small parcel processing fee added by the French government, and is separate from the European Customs Reform. Therefore the new €3 EU duty does not replace it. Packages to France will be subjected to BOTH of these additional charges, unless TPC is repealed.

Anything else?

Please note that this new parcel duty is separate from:

• import tax
• customs duties
• carrier handling charges
• other existing taxes and fees

A word from Coscraft

We believe it's obvious that none of the above is what we want, with additional cost to customers and additional admin to us. By making the customer pay the duty upfront to the shops, it creates new admin burden for retailers and make them look overpriced, while in reality the retailers have to do more work and don't get to keep any of the extra payment.

The big retailers and marketplaces that these reforms are aimed at are the same businesses that can afford to absorb the cost (and possibly pay for logistics experts and lawyers to look for loopholes). In the meantime, small shops have to obey the same rules, and the cost to small shops are proportionally much higher.

We don't want to write essays about all the challenges small shops are facing, we believe our customers are smart and well informed, and already know about it! All we ask is that if prices go up, or if you see a sudden jump in shipping cost, please remember this isn't what we want either, and be kind about it.

And while we are a business, often we don't get the full instructions until the last minute - for example, there are less than 2 weeks to the start of the new duty and still no clear direction on how it will be remitted to the EU. And despite all of the information on this post, we cannot afford international trade experts, and we shouldn't be counted on as the ones to educate the general public on issues regarding taxes, duties and other fees.

For more information, please see the official guidance from the European Commission: https://taxation-customs.ec.europa.eu/news/guidance-and-legal-text-temporary-flat-fee-low-value-imports-which-will-apply-until-1-july-2028-2026-06-08_en