What the EU’s New Customs Rules Mean for Your Shipments

Planning on shipping packages to the European Union (EU) soon? You may notice some changes when sending parcels to some EU countries. Recent changes to customs requirements in the EU are impacting all shipping providers, and some carriers (including Canada Post) have temporarily stopped accepting parcels for certain European countries as they adjust to the new regulations.

The EU has recently removed its De Minimis exemption, which previously allowed low-value imported shipments to enter the region without being charged customs duties. With this exemption removed, shipments that were previously duty-free may now be subject to customs duties.

Low-value shipments include goods valued at €150 (approximately $240 Canadian), though shipments of any value may now be subject to customs duties when entering the EU. This also means that Value Added Tax (VAT) may increase, since VAT is calculated based on the value of the goods plus any applicable duties.

The EU introduced these changes to address concerns that many parcels are undervalued or incorrectly declared to avoid duties and taxes, giving non-EU-based importers an unfair advantage. This affects all 27 EU countries.

How Will This Impact Shipments Destined for the E.U.?

If you are shipping to one of the 27 EU countries, the new customs requirements will impact how duties are applied, depending on who is sending the package and to whom it is being sent.

Sending a gift or package to another person (Individual-to-Individual)?

Packages that are valued under €45 (approximately $72 Canadian) per shipment will continue as usual. Packages valued above €45 per shipment will be affected. Customs duties will now be applied to these packages.

Shipping from a business to a customer (Business-to-Consumer)?

Shipments valued under €150 will now include a new flat customs duty.

Shipping between businesses (Business-to-Business)?

Customs duties will be charged based on the standard EU duty rates or on any applicable trade agreements.

What You’ll Need To Get It There.

If you are planning on shipping a package to the EU, it’s important to be aware that the shipment may now be subject to customs duties and VAT. To help avoid delays at customs, make sure you complete the following steps before shipping:

Include a Completed Power of Attorney (POA) Form

A Power of Attorney form is a legal document that authorizes the shipping provider to act on the customer’s behalf, allowing them to clear shipped goods through customs and pay any additional duties or taxes, if required.

Completing this form helps make sure that the shipping provider can complete the customs clearance process on your behalf and prevent delays if additional information or payment is required.

Complete the Commercial Invoice Accurately

A Commercial Invoice is one of the most important customs documents for international shipments. It serves as a legal declaration of what is being shipped and provides customs authorities with the information that they need to calculate duties and taxes and determine whether the goods can legally enter the country.

To help prevent delays, make sure the Commercial Invoice is completed accurately and includes all the required details, including:

• Reason the items are being shipped (e.g. gift for a family member, sale, return).
• A detailed description of each item (e.g. specify ‘men’s 100% cotton t-shirt,’ rather than just ‘clothing’)
• The product HS code (Harmonized System code number). This is a globally recognized product tag to classify an item, typically consisting of 6 digits.
• Tariff classification: additional digits that provide a more specific product classification and are used to calculate duty rates. These are typically 8-10 digits.
• The quantity of each item or unit of measure, if applicable.
• An accurately declared value per item. Items should not be undervalued.
• Country of origin for each item (where manufactured, not purchased).
• Brand and model information, where applicable.
• The recipient’s information, including their full name, complete address, phone number, and email address.

When shipping to the EU at The UPS Store, a store associate will complete this invoice for you using the above information.

The UPS Store’s Small Business Solutions

Managing shipping requirements can be challenging for individuals and small businesses. The UPS Store can help. From expert packing and shipping advice to dependable delivery services, our team is here to help make shipping easier. Visit a local The UPS Store to learn more about our shipping solutions.