The global customs reset – what is actually happening in 2026?
Governments are rethinking how they handle the millions of small parcels generated by cross-border e-commerce.
The traditional de minimis model, where low-value imports can enter with reduced or zero customs duties, was designed for a world of relatively small parcel volumes.
E-commerce changed that.
The European Commission estimates that 5.88 billion low-value items entered the EU in 2025, accounting for around 98% of all imported items by number. That scale is forcing governments to reconsider whether low-value imports should continue receiving special treatment.
But here’s the interesting part,
There isn’t one global approach.
Some markets are adding duties.
> Some are removing exemptions.
> Some are changing how VAT is collected.
Others are actually making e-commerce exports easier.
European Union: €3 changes the game
From 1 July 2026, the EU abolished its €150 customs-duty exemption for low-value imports.
A temporary €3 customs duty now applies to each item in eligible consignments valued at €150 or less, and the measure is scheduled to run until 1 July 2028.
The EU is also moving toward a broader digital customs system, with the Customs Data Hub expected to fundamentally change how customs information is managed.
What this means for sellers.
Product classification, customs data and landed-cost calculations are becoming much more important.
United States: the $800 de minimis era has been disrupted
The US has gone even further.
Effective 29 August 2025, the US suspended duty-free de minimis treatment for shipments valued at $800 or less from all countries, subject to specified exemptions and subsequent changes. Those shipments became subject to applicable duties, taxes and fees.
For postal shipments, CBP introduced specific methods for assessing applicable duties, with the system moving toward an ad-valorem approach from February 2026.
That’s a massive change for businesses that built their US strategy around sending thousands of relatively inexpensive parcels directly to consumers.
The lesson: A market that once made low-value cross-border selling relatively easy can change its economics very quickly.
UK: the £135 threshold is also on the way out
The UK hasn’t removed its £135 customs-duty relief yet, but it has decided to.
In July 2026, HMRC published its reform proposal confirming plans to remove the £135 customs-duty relief for low-value imports and introduce a new customs arrangement.
The UK government says the current relief is expected to be removed by March 2029 at the latest.
Importantly, UK businesses aren’t waiting for that date to deal with VAT. For goods valued at £135 or less, VAT is already generally collected at the point of sale, while customs duty currently applies above the £135 threshold.
So the UK is moving toward a system where low-value imports receive less preferential customs treatment.
Canada: the picture is more complicated
Canada hasn’t simply abolished its low-value thresholds.
For courier shipments from the US and Mexico, goods up to C$40 can generally be duty- and tax-free; shipments above C$40 up to C$150 can be duty-free but taxes still apply. For shipments from other countries, the threshold is generally much lower.
For mail from any country, the general duty/tax-free threshold remains C$20.
So Canada demonstrates an important point:
Customs reform doesn’t necessarily mean “every country is eliminating de minimis.”
The thresholds, taxes and exemptions can vary significantly depending on origin, transport mode and shipment value.
Australia: GST rather than a new customs-duty shock
Australia provides another model.
Goods with a customs value of AUD $1,000 or less can be subject to GST, with qualifying overseas vendors, electronic distribution platforms and re-deliverers required to collect GST at the point of sale.
This means the Australian approach focuses heavily on tax collection at the point of sale, rather than simply waiting until a parcel arrives at the border.
Again, different market, different solution.
India: a surprisingly different direction
India is particularly interesting, because its 2026 reforms are focused heavily on making e-commerce exports easier.
From 1 April 2026, India removed the ₹10 lakh value cap on commercial exports through courier mode.
It also introduced simplified processes for returned/rejected goods and a Return-to-Origin mechanism for uncleared courier imports.
India’s message isn’t simply,
“Make low-value imports harder.”
It’s also,
“Make it easier for domestic businesses to export.”
That’s a crucial distinction.
So, what is the real trend?
Looking across these markets, I see three major customs trends emerging.
1. De minimis is losing its power
The US has suspended its $800 duty-free treatment.
The EU has replaced its €150 exemption with a temporary €3 duty.
The UK has announced plans to remove its £135 customs-duty relief.
The direction is clear:
Governments are becoming less comfortable with large volumes of low-value imports entering through simplified channels.
2. Customs is becoming a data problem
Governments aren’t just asking:
“What’s in the box?”
They’re increasingly interested in:
- What exactly is the product?
- Who manufactured it?
- Where did it originate?
- What’s its HS classification?
- What’s its true value?
- What taxes and duties apply?
- Who is responsible for payment?
This is why digital customs systems and better shipment data are becoming so important.
3. Customs policy is becoming part of your sales strategy
This is the part businesses shouldn’t overlook.
If you’re selling a $50 product internationally, your customer doesn’t care that your customs declaration was technically correct.
They care about:
“How much am I paying?”
and
“When will I get it?”
If duties, taxes or handling fees suddenly add 20% to the customer’s expected cost, you have a conversion problem, not just a customs problem.
And this is where Pigee fits
International shipping isn’t becoming impossible. It’s becoming more complex.
A business selling from China to the EU, US, UK or Canada can no longer assume that the same shipping strategy works everywhere.
You need visibility into:
Destination → Product → HS code → Duties → Taxes → Shipping cost → Final landed cost
That’s where a platform like Pigee becomes valuable.
Instead of businesses figuring out every destination’s rules manually, Pigee can help bring shipping options and customs information into the same workflow.
The Pigee Customs, Duties & Commodity Lookup can help businesses look up commodity codes and understand applicable duties and taxes before shipping.
And with Pigee Post, businesses can manage international shipping rather than treating every overseas order as a separate logistics puzzle.
create a free account here
Share this article.