1. A “small-parcel” loophole finally closes
For years, online sellers could slip under the EU’s €150 customs duty and VAT de minimis ceiling. From 1 July 2025, that shortcut disappears: every parcel, no matter the value, will be taxed at the destination rate and must clear full customs formalities. The change forms part of a broader Customs Reform Package, which also proposes a €2 handling fee on low-value parcels to offset screening costs.
At the same time, ICS2 Phase 3 reaches its enforcement date. The rollout begins in April; by 1 September 2025, all transport modes - air, sea, road, and rail - must file complete Entry Summary (ENS) safety data before goods depart. Late or incomplete filings will result in consignments being stopped or automatically returned.
2. What’s new
| Requirement | Old rule | From July 2025 |
|---|---|---|
| VAT on imports ≤ €150 | Exempt at import; often unpaid | VAT due on every parcel |
| Customs duty threshold | Nil duty ≤ €150 | Subject to EU Common Customs Tariff |
| ENS security data (ICS2 Phase 3) | Air freight only (Phase 2) | All modes, house-level data, pre-lodged |
| Penalties for non-compliance | Manual inspection, small fines | Automatic returns, storage fees, potential carrier bans |
3. Who’s affected?
- UK and US e-commerce retailers shipping direct-to-consumer in the EU
- 3PLs / fulfilment houses aggregating small parcels
- Marketplaces acting as the deemed importer under EU marketplace liability rules
- Any brand shipping batteries or regulated goods (which face both VAT and ICS2 red flags)
If you sell into the EU but fulfil from outside it, these changes apply, regardless of your SKU size, order volume, or price point.
4. The 6-day action plan
Day 1 – Register for IOSS (or appoint an intermediary) & Audit your product master for HS-6 coverage
Without IOSS, every parcel clears individually, adding days and fees, while ICS2 rejects vague descriptions like "gift" or "sample." Map HS-6 codes now.
Target: Start IOSS registration or appoint an intermediary today. Minimum 80% SKU coverage in your product database.
Day 2 – Add sender’s EORI and HS-6 to your shipping labels
Labels and digital pre-advice must match. No EORI = No customs clearance.
Target: Print-ready labels with full customs data.
Day 3 – Flip from DAP to DDP in your checkout
DAP = buyer is the importer. DDP = you control the VAT & duty process.
Target: DDP activated in checkout and carrier accounts.
Day 4 – Map required fields to your data feeds
Carriers now need ENS-ready data: sender, receiver, HS-6, value, weight, and UN codes.
Target: All fields mapped in OMS/WMS and test feed submitted.
Day 5 – Run a red-flag SKU audit & Perform a live parcel test
Batteries, supplements, cosmetics, textiles, each has licensing rules. Create a test order. Check data, label, and feed outputs end-to-end.
Target: All flagged SKUs reviewed and correctly coded. One parcel flows cleanly from OMS to carrier booking.
Day 6 – Final review with Ops & Compliance
Bring your teams together. Fix the gaps, confirm timelines.
Target: Go/no-go checklist signed off. Ready to scale.
5. What happens if you ignore the deadline?
- Automatic returns and storage fees: Non-compliant parcels may be returned without notice
- Marketplace delistings: Platforms may suspend sellers who don’t supply IOSS data
- Cash flow crunch: Held parcels tie up inventory
- Reputational damage: Poor EU delivery performance affects global ratings
A July deadline may feel distant, but onboarding slots fill quickly once enforcement begins. Early movers gain carrier capacity, DDP rates, and customer trust.
6. How Parcels2Send can help
| Service | Benefit | Typical turnaround |
| IOSS intermediary setup | EU-wide VAT number and monthly filings | 7–10 days |
| HS-code & EORI data mapping | Eliminates ENS rejections | 1–2 weeks |
| DDP multi-carrier tariff | One rate, all duties prepaid | Same-day quote |
| Pre-lodgement gateway (API/CSV) | Pushes ENS data to carriers automatically | 48-hour test account |
Our customs engineers have already supported dozens of SMEs through ICS2 Phase 2 for air freight. Phase 3 introduces the same standards across all modes. We help upgrade label formats, automate VAT collection, and keep parcels moving, so you can keep selling.
7. Ready to future-proof your EU sales?
Email info@parcels2send.com or call +44 (0)20 1234 5678 to start.
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