UK small businesses face fresh cost pressures after the European Union confirmed it will introduce a new customs charge on low-value parcels entering the bloc from July 2026.
Under the new rules, the EU will apply a flat €3 customs duty on parcels valued at less than €150, ending the long-standing “de minimis” exemption which currently allows such goods to enter without charge.
The British Chambers of Commerce (BCC) has warned the move will significantly affect UK exporters, particularly small and medium-sized firms that rely on low-value shipments to serve customers across Europe.
William Bain, head of trade policy at the BCC, said that while UK-originating goods will remain tariff-free under the Trade and Cooperation Agreement, the introduction of customs duties and handling fees will still damage competitiveness.
“Although UK originating products will still be tariff free, they will now face customs fees and potentially separate handling charges levied by individual EU countries,” Bain said. “This extra cost will make goods from Great Britain less attractive to both businesses and consumers in the EU and squeeze profit margins.”
The new charge is due to come into force on 1 July 2026, ahead of a wider package of EU customs reforms scheduled for January 2028. Those reforms aim to overhaul how low-value goods are processed at the EU’s borders, in part to tackle the rapid growth in e-commerce imports.
The announcement also comes as the UK government considers its own changes to customs rules. A consultation is already under way on abolishing the UK’s de minimis threshold from 2029, raising concerns among exporters that cross-border trade costs could rise on both sides of the Channel.
Bain said the EU’s decision should act as a catalyst for action in Westminster. “The government must now consider wider customs reforms and the introduction of a Single Trade Window to ease costs for our firms,” he said. “It will also need to review the impact of these EU changes on customs rules between Great Britain and Northern Ireland.”
For many UK small businesses, particularly those operating in online retail, fashion, consumer goods and specialist manufacturing, low-value shipments have been a key route into EU markets since Brexit. Industry groups fear the additional costs could deter EU customers or force firms to absorb charges that further erode already tight margins.
With July 2026 approaching, business groups are urging ministers to engage with Brussels and accelerate domestic reforms to ensure UK exporters are not left at a competitive disadvantage.
