The discussion has become distorted because many people are looking at only one part of the cost. They hear “€3” and assume IOSS has lost its value. But that misses the real comparison. The new €3 customs duty is a broader EU measure for low value e-commerce parcels sent directly to consumers from third countries, starting in July 2026. It is not presented by the European Commission as an IOSS-specific penalty. At the same time, the Commission continues to describe IOSS as a simplification tool and says recent changes are intended to strengthen its effectiveness, reduce administrative burdens and encourage wider adoption.

That is why the real question is not whether there is a new fee.

The real question is whether avoiding IOSS makes importing into the EU easier or cheaper.

For most sellers, it does not.

The Key Detail Many Merchants Are Missing

At EAS, we see that our customers have on average 1.2 HS codes per order.

That matters because the practical cost depends on the classification structure of the shipment. In simple terms, if your order includes one HS code, no matter the number of items, the new fee is €3 in total. Example: if your customer orders 3 t-shirts, the total duty is 3€.

That is still a very manageable amount for most sellers, especially when compared with the alternatives. And of course the 3€ fee can be applied to your EU prices or delivery fees.

A €3 charge is often far lower than customs handling fees, lower than the cost difference between standard delivery and more expensive DDP-style setups, and far lower than the commercial damage caused when buyers face a difficult import process, extra payment requests or delays at delivery.

This is where IOSS continues to stand out.

IOSS Still Removes the Bigger Problems

The biggest mistake merchants make is assuming that dropping IOSS removes the pain.

It usually does not.

If you move away from IOSS, you are not creating a frictionless import route. You are often exposing the shipment to the same new customs environment, while also giving up the benefits that made IOSS valuable in the first place.

If a parcel is shipped without using the Import One-Stop Shop, IOSS, scheme, it will be subject to standard customs procedures. This entails additional inspections, the application of general customs duties, and the requirement for a longer 8-digit Harmonized System, HS, code. Furthermore, the parcel must enter the EU in the specific country where it is ultimately consumed.

Another important point is that if a merchant wants to avoid the 3€ duty, they must switch from postal to courier. And couriers are traditionally more expensive when it comes to delivery fees. In practice, that means the extra transport cost can easily surpass the 3€ duty the merchant was trying to avoid.

Those benefits are still very real.

IOSS keeps VAT collection clear and predictable. It helps create a smoother checkout experience. It reduces the likelihood of unpleasant surprises for the customer. It supports a cleaner delivery flow for low value B2C parcels. And it helps merchants avoid the wider chain of costs that often appear when import VAT and clearance are handled less efficiently.

For most sellers, that is the point that matters most. The question is not whether there is a new charge. The question is whether the full landed cost and customer experience are still better with IOSS.

In most cases, they are.

The EU Is Not Trying to Push Merchants Away from IOSS

The policy direction matters here.

Everything the European Commission has said publicly points in the same direction, tighter controls on low value imports, more digitalisation, more simplification, and stronger use of structured systems such as IOSS, not less. In May 2025, the Commission said the new VAT approach for e-commerce imports would further enhance the effectiveness of IOSS by simplifying VAT declaration and payment, reducing administrative burdens, and incentivising wider adoption. The Commission has also continued to describe IOSS as the mechanism created to simplify the declaration and payment of VAT for low value imported goods.

That is an important signal.

The EU’s goal is not to make IOSS irrelevant. The goal is to make low value cross-border e-commerce more transparent, more compliant and easier to control at scale. The wider customs reform also includes removal of the current €150 customs duty exemption threshold and a simplified tariff treatment for low value consignments, which shows that the direction of travel is tighter import control overall, not a move away from IOSS.

So when merchants ask whether IOSS is still beneficial, our answer is straightforward.

Yes, absolutely.

For Most Sellers, IOSS Remains the Best Option

If you are shipping low value B2C orders into the EU, the fundamentals have not changed.

Customers still want a simple buying experience.

Merchants still want predictable costs.

No one wants parcels delayed by complicated import processes.

And no brand benefits when buyers are surprised by additional charges or asked to deal with customs after checkout.

That is exactly why IOSS remains so valuable. Even with the new €3 fee, it still offers the cleanest and most commercially sensible route for most sellers. In many cases, it will remain the lowest-friction and lowest-total-cost option once you look beyond the headline and compare the full delivery reality.

If merchants move away from postal delivery, the 3 EUR duty and IOSS, they will need to switch to courier delivery instead, and the cost of that will often surpass the 3 EUR duty.

So yes, there is a new customs charge coming.

But no, that does not make IOSS obsolete.

If anything, it makes the value of IOSS clearer than ever.