> For the complete documentation index, see [llms.txt](https://developer.esw.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://developer.esw.com/getting-started/get-started-with-esw/finance-and-settlement/eu-customs-duty-exemption.md).

# EU Customs Duty Exemption

The European Union will remove the customs duty exemption threshold for low value imports effective <mark style="color:$danger;">1st July 2026</mark>. From this date, all goods imported into the EU will be subject to customs duty, including shipments that were previously exempt due to their value. This change applies to all imports into the European Union across all member states.

This change impacts how customs duties are calculated and applied for EU-bound orders processed through ESW.

### What does this mean

#### Low value orders

Orders below the previous exemption threshold will now incur customs duty. A fixed duty will be applied per item within the order, with items defined by their HS code classification.

#### Higher value orders

Orders above the previous exemption threshold will continue to follow the existing customs duty model, where duties are calculated as a percentage based on HS code. There is no change to this approach.

{% tabs %}
{% tab title="Example" %}
A retailer ships a parcel containing:

* 1 linen shirt
* 2 cashmere shirts
  {% endtab %}
  {% endtabs %}

Although all items are included in one parcel, the linen and cashmere shirts are classified differently for customs purposes. The shipment would therefore attract two separate `€3` charges (`€6` total).

Where multiple units share the same customs code, only one `€3` charge would apply, provided the total shipment value remains within the `€150` threshold.

### What action do I need to take

If you use ESW’s [Pricing Advisor](/pricing-advisor-api/pricing-advisor-api/overview.md) tool, you can review and confirm whether to apply the updated customs duty configuration within [ESW Checkout](/checkout-api/checkout-api/overview.md). ESW has completed analysis and provided recommended updates within the tool.

If you use Price Book values, you should review and incorporate the updated customs duty structure into your shopper pricing where applicable. ESW has provided recommended duty adjustments to support this update.

{% hint style="info" icon="coins" %}
**Note**: As it is a customs duty, it is reported as Duty.
{% endhint %}

{% tabs %}
{% tab title="Suppoort" %}
If you have any questions or require further guidance, please contact your Client Success Manager.
{% endtab %}
{% endtabs %}


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