-
Businesses shipping directly to a customer within the European Union will be required to provide Product Identifiers and pay at least €5 per product type for customs and handling fees starting November 1
-
These new policies are part of the major EU Customs Code reforms approved by the European Parliament on September 16
-
The €5 fee covers: €3 customs duty per item on e-commerce parcels valued below €150 that already took effect in July 2026 and will be valid until July 2028; and a tentatively €2 Union Handling Fee
-
There are three types of mandatory product identifiers that will be used by customs authorities for product safety checks and regulatory compliance
-
Without the PIDs, the parcels could be put on hold and corresponding fines may be imposed
-
Industry reports indicate a shift towards more bulk shipments and keeping stock within the EU
Businesses shipping directly to a customer within the European Union (EU) will be required to provide Product Identifiers (PID) and pay at least €5 per product type for customs and handling fees starting November 1.
These new policies are part of the major EU Customs Code reforms approved by the European Parliament on September 16, which is in response to the rapid growth of cross-border e-commerce shipments in recent years. The new rules are intended to help authorities strengthen quality checks on imported products, improve consumer protection, and enhance transparency in the supply chain.
READ: New EU e-commerce, customs rules take effect Nov 1
The €5 fee covers:
- €3 customs duty per item on e-commerce parcels valued below €150 that already took effect in July 2026 and will be valid until July 2028
- €2 Union Handling Fee (UHF) that is intended to compensate EU customs authorities for the rising costs of processing, data verification, risk analysis, and releasing low-value e-commerce packages
The UHF rate may still change as this is still subject to final EU confirmation.
Mandatory PIDs
Meanwhile, business-to-consumer shippers will also have to provide the PIDs on their commercial invoice and customs dataset. This applies to non-EU businesses selling through e-commerce stores and other online marketplaces.
PIDs will be used by customs authorities for product safety checks and regulatory compliance. There are three types:
- Merchant Product Identifier (M-PID) – the seller’s own SKU (stock keeping unit) or the merchant’s item code
- Non-Standardised Manufacturer Product Identifier (NS-PID) – a code from the supplier or factory that is used when there is no global barcode
- Standardised Manufacturer Product Identifier (S-PID) – a barcode or an identifier that is globally recognized such as GTIN (Global Trade Item Number), EAN (European Article Number) or UPC (Universal Product Code)
Failure to comply with the mandatory PIDs means the parcels could be put on hold and corresponding fines may be imposed.
Global shipping firms such as DHL, Federal Express (FedEx), and United Parcel Service (UPS) have recently issued guidelines to help their clients navigate through the new calculations and PID requirements.
In a statement in June, EU commissioner Maroš Šefčovič, emphasized that the reforms are meant to ensure fairness for all businesses operating within the EU market and protect customers.
“By introducing a small duty and stronger product traceability, we are closing loopholes that allowed unsafe and non-compliant goods to enter our market too easily. This is a key step in the modernisation of our Customs Union and towards a fully digital, agile and coordinated EU customs system fit for the challenges of our times,” Šefčovič said.
Going for bulk imports
The impact of the reforms is already being felt with industry reports indicating a shift towards more bulk shipments and keeping the stock within the EU.
U-Freight Group, for example, has noted how importers and international e-commerce companies are adjusting their supply chain strategies to avoid higher customs costs for cross-border shipments. This was particularly seen in Spain, France, and Poland.
In the Netherlands, the Philippine’s second largest trading partner in the EU, business advisory firm Holdwise B.V. said the Dutch Customs already recorded 46% fewer e-commerce declarations in July and August than the average in the first half of 2026.
“Since the €3 duty started, Dutch Customs counts 46% fewer e-commerce declarations. Dutch Customs sees signs that more companies import in bulk and keep stock in the EU. In our example, an order as a parcel costs €19.50. The same order costs €10.00 from stock in the Netherlands,” Robert Jeffrey, senior advisor International Structuring at Holdwise, said.
These policy changes could prove crucial to Philippine businesses as the country is expected to sign a free trade agreement with the EU by next year.
