Notice on the Upcoming EU Tax Reform Effective July 2026

An official advisory has been issued for customers across the European Union regarding the upcoming EU Tax Reform. Effective July 1, 2026, this major regulatory shift implemented by the European Union will impact import and customs procedures for low-value shipments entering EU member states.

To ensure uninterrupted service and minimize clearance delays, all EU-based clients are urged to familiarize themselves with these new regulations.

Policy Overview: Elimination of Duty Exemptions

Starting July 1, 2026, the European Union will completely eliminate the customs duty exemption for low-value goods. Every single shipment bound for the EU, regardless of its value, must be formally declared and is subject to customs duties.

Different sets of rules will apply to B2C and B2B shipments

The EUCR introduces distinct compliance frameworks based on the nature of the recipient:

1. For B2C shipments:

Goods value ≤ €150: A flat-rate "temporary customs duty" of €3.00 per line item will be applied. For example, if a package contains 3 different product categories, the total temporary customs duty will be €9.00.

Goods value > €150: Standard tariff rates apply.

Impact on IOSS: Under the current IOSS framework, JLCPCB can only collect and remit import VAT, but cannot manage the "temporary customs duty". Therefore, recipients will still need to pay the "temporary customs duty" upon importation if using non-DDP channels.

2. For B2B shipments:

Regardless of the shipment value, all B2B packages must go through formal customs clearance and pay duties based on the actual HS code corresponding to the goods (standard applicable tariff rates), bypassing the €3.00 flat-rate rule.

Managing "Duty & Tax Disbursement Fees" from Carriers

When carriers like DHL, UPS, or FedEx pay customs duties and taxes upfront on behalf of the recipient, they charge a "duty & tax disbursement fee" to the party responsible for the tax. These fees vary significantly by country and carrier (such as tiered brackets or specific minimum charges per shipment).

Consolidation Advice for B2C Shipments

To optimize your shipping costs under the new EU regulations, we highly recommend consolidating your orders. For B2C customers, if you combine multiple items or orders into a single shipment to bring the total goods value above €150, the shipment will become eligible for standard tariff rates instead of the €3.00 flat-rate temporary customs duty per line item. For many multi-item orders, utilizing standard tariffs through consolidation can be significantly more cost-effective.

For more information regarding specific handling fees, tax calculations, and country-by-country Duty & Tax Disbursement Fee, please read our full EU Customs Reform (EUCR) July 2026 – Client FAQ.