EU Customs Reform July 2026 — What Ship&co Users Need to Know

What's changing

Starting July 1, 2026, the European Union is eliminating the customs duty-free threshold (de minimis) for low-value shipments. Until now, packages valued under €150 shipped into the EU were exempt from customs duties (but not from VAT). From July 1, every shipment — regardless of value — will be subject to a flat duty of €3 per line item on the customs declaration, identified by HS code and country of origin. A second phase starting November 1, 2026 will require Product Identifiers (PIDs) for each item on B2C shipments under €150.

This applies to all 27 EU member states, for both B2C and B2B shipments originating from outside the EU.
 

What are Product Identifiers (PIDs)?

PIDs are codes that identify the seller and the product at the item level. Three types are required:

1. Merchant Product Identifier — your SKU, item code, or product code
2. Non-standardized Manufacturer Product Identifier — a code assigned by the manufacturer
3. Standardized Manufacturer Product Identifier — a globally recognized code such as a GTIN, EAN, or barcode (only required if one exists)

This is the first time product-level data has been required for EU customs declarations. If this information is missing after November 1, shipments may be held or returned.
 

What you can do right now

The single most impactful thing you can do today is make sure your customs invoice data is complete and accurate:

• Product descriptions should be clear and specific — avoid vague terms like "tshirt" or "toy"
• HS codes should be set on every product. If you're using Shopify, Ship&co automatically syncs HS codes and country of origin from your product pages. See: Syncing Customs Information from Shopify (HS Code, Country of Origin)
• Country of origin should be filled in for every product
• Recipient email address should always be included — carriers need it to contact consignees during customs clearance
• If you need to use a custom or carrier-specific commercial invoice with FedEx, Ship&co lets you upload your own invoice directly. See: Uploading a custom invoice for FedEx
   

What about automatic PID transmission to carriers?

This is where things are still evolving. Carriers need to receive PID data through their APIs, and e-commerce platforms need to provide that data with order information — these two pieces have to align.

On the carrier side, we are in active communication with each of our carrier partners to understand their API roadmap for PID data transmission and EU customs compliance. When a carrier confirms support and the implementation requirements are clear, we will update Ship&co accordingly and reflect those changes on this page.

On the e-commerce platform side, Ship&co already retrieves SKU numbers from Shopify and eBay with each order. This means that once carrier APIs formally support and require PID data, we will be in a position to automatically pass SKUs — and other identifiers where available — without requiring manual input from you. However, not all platforms expose the same data: Shopify and eBay provide SKUs, but other product identifiers (manufacturer codes, GTINs) are generally not included in order sync data today.

The practical reality is that the completeness of automatic PID transmission will depend on what each e-commerce platform includes in its order data, and what each carrier requires. We are actively working to bridge that gap as the picture becomes clearer.
 

For Japan-origin products: preferential origin declaration

If you ship products made in Japan to the EU, you may benefit from the Japan-EU EPA preferential tariff rate. To claim this, add the following statement to the custom invoice message field in Ship&co (Settings → Invoice). Replace "XXXXXX" with your exporter reference number. If you are a Japanese exporter and do not have an EU EORI number, contact your carrier to confirm which reference number to use.

"The exporter of the products covered by this document (Exporter Reference No XXXXXX) declares that, except where otherwise clearly indicated, these products are of Japan preferential origin. [Place and date] [Name of the exporter]"

Note that EPA application depends on your carrier's customs broker — check with your carrier to confirm.
 

IOSS and VAT

If you use IOSS (Import One-Stop Shop) to collect VAT at point of sale, make sure your IOSS number is configured in Ship&co, this will automatically be passed to supported carriers during customs clearance. For Shopify sellers and other platforms, you can set this up in your Ship&co invoice settings. See: EU Exports and IOSS Number for full details by platform and carrier. Note that IOSS does not cover the new €3 customs duty, that is collected separately by the carrier.

Summary: what to check now

• HS code and country of origin on every product ✓
• Clear, specific product descriptions on invoices ✓
• Recipient email address on every shipment ✓
• IOSS number entered if applicable ✓
• SKU/product codes on your Shopify or eBay listings ✓

Ship&co will update this page and notify users as carrier API support for PID data is confirmed. Stay tuned to our Changelog for updates.