Resource Type: Reports
Tag: Fulfilment
From 1 July 2026, the EU will abolish the €150 customs duty exemption. This is not a minor compliance update, it is a structural margin event for UK and US brands that transforms the economics of every low-value order.
Resource Type: Reports
How THG Fulfil is solving the EU growth tax
From 1 July 2026, the EU will abolish the €150 customs duty exemption. This is not a minor compliance update, it is a structural margin event for UK and US brands that transforms the economics of every low-value order.
Grow inside the EU, not across borders. Book an EU fulfilment assessment today.
The New Economics of Cross-Border Growth
For non-EU brands, selling into Europe is no longer a minor regulatory hurdle. Stricter enforcement and new per-item charges are increasing the real cost of every US → EU and UK → EU order.
The Math of Margin Erosion: Starting July 2026, a flat €3 customs duty will be charged per HS code (per item type), not per parcel. Even if your products attract 0% duty, this fee applies to every distinct tariff code in the box.
- 10 HS Codes in one parcel = €30 in duty
- 15 HS Codes in one parcel = €45 in duty
- 20 HS Codes in one parcel = €60 in duty
For high-volume DTC brands, this is a "Growth Tax" that exposes massive margin leakage and introduces friction exactly where you can't afford it
Is Your Sales Profile Exposed? The impact of these changes depends entirely on your specific basket mix. While moving bulk stock into the EU involves standard value-based duty, for many brands, this is far more efficient than the compounding €3-per-item cross-border fee. Our Margin Audit helps you compare these models to see how a localised strategy reduces your total cost-to-serve.
The THG Fulfil Solution
We enable brands to serve EU customers locally while retaining full operational control.
- Poland Distribution Centre: Position inventory inside the EU to reduce delivery times, and eliminate the €3 per-HS code charge.
- THG Fulfil's Checkout Solution: Calculate and surface duties upfront to protect conversion and eliminate "doorstep shock" for customers.
- Merchant of Record: THG assumes responsibility for EU duties, VAT, and compliance in key territories removing your operational risk.
Don't Wait to Protect Your Margins
The "patchwork" of national fees has already begun in countries like Italy and Romania. Brands that reposition their inventory and integrate their checkout now will be the ones that thrive while others stall.