Shipping from India to the EU: customs duty, VAT, the €3 duty and the €2 handling fee (2026)
Since 1 July 2026 there is no duty-free limit for parcels sent from India to EU buyers. Orders of €150 or less pay a flat €3 duty per item when VAT is collected through IOSS or the parcel goes by post, and from 1 November 2026 a €2 handling fee per item is added. There is no EU–India trade deal in force yet, and GSP is suspended for Indian clothing, textiles and jewellery, so larger orders pay the full EU rate. Here is what Etsy and own-shop sellers need to know, with an official source and date on every rule.
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The rules in 60 seconds
The EU's €150 customs-duty exemption for low-value consignments was abolished on 1 July 2026 (Council Regulation (EU) 2026/382). Goods in consignments of €150 or less are now subject to customs duty.
The EU–India free trade agreement is not in force. The Commission says negotiations concluded in January 2026 and it sent the proposals for signature and conclusion to the Council in September 2026; the Council still has to adopt them, the agreement must be signed, the European Parliament must consent and India must ratify. Until then Indian goods pay the EU's normal (third-country) duty, or a GSP rate where one still applies.
From 1 July 2026 until 1 July 2028, a flat customs duty of €3 per item applies to consignments of €150 or less that are declared under IOSS or sent as postal consignments. Normal tariff rates are expected to apply once the EU customs data hub is ready.
From 1 November 2026 a Union handling fee of €2 per item (per declaration line, i.e. per distinct tariff line) applies to goods sold in distance sales (B2C e-commerce) to EU consumers from outside the EU, at any value, including over €150. It is in addition to the €3 duty, is not part of the customs value, is paid by the declarant (seller/IOSS holder, carrier or representative), has VAT charged on it, cannot be refunded (even on returns), and does not apply to private gifts. The amount is final: Commission Delegated Regulation (EU) 2026/2152 was published in the Official Journal (L series) on 21 October 2026. The €2 handling fee explained
TARIC lists both charges on these Indian goods: the low-value consignment duty of €3.00 (measure under Regulation 2026/382), running on after 31 October 2026, and from 1 November 2026 the Union handling fee of €2.00.
Orders of €150 or less
For consignments of €150 or less, VAT can be charged at checkout through the Import One-Stop Shop (IOSS), at the buyer's country rate. Marketplaces handle this for sales made through them. Non-EU sellers registering for IOSS themselves generally need an EU-established intermediary. Do I need an IOSS number?
Without IOSS, import VAT is collected from the buyer on delivery. The postal operator or courier usually adds its own clearance fee.
Consignments of €150 or less that are neither IOSS nor postal (e.g. courier, buyer pays VAT on import) are outside the €3 regime. Since the duty exemption is gone, they appear to pay the normal tariff rate. Check with your courier.
An 'item' means each different tariff sub-heading in the parcel. Example: 1 silk blouse + 2 wool blouses = 2 items = €6. Identical goods can be grouped on one declaration line. How items are counted, with examples
Each consignment is counted separately. Orders shipped separately to the same buyer are separate consignments even if they arrive on the same day, and one order sent in two parcels is two consignments. Orders of two different consumers must always be declared separately.
For the €150 limit, the value is the price of the goods themselves, without transport and insurance (unless they are included in the price and not shown separately on the invoice) and without other taxes and charges.
Example: one pair of silver earrings for €40.00 (free shipping) to a buyer in Germany, shipped on or after 1 November 2026. VAT is 19% in Germany. Carrier clearance fees are not included because they vary; see each row in the calculator.
| How you sell and ship | EU duty | VAT | €2 handling fee | Buyer pays at the door | Try it |
|---|---|---|---|---|---|
| Sold on Etsy or another marketplace (IOSS), sent by India Post | €3.00 | €7.60 | €2.00 | €5.00 | Open in calculator |
| Own website with your own IOSS number (DDP), sent by courier | €3.00 | €7.98 | €2.00 | €0.00 | Open in calculator |
| Own website, no IOSS, sent by India Post (buyer pays on delivery) | €3.00 | €8.55 | €2.00 | €13.55 | Open in calculator |
| Own website, no IOSS, sent by courier (buyer pays on delivery) | €1.00 | €8.17 | €2.00 | €11.17 | Open in calculator |
With IOSS the VAT is paid at checkout. The €3 duty and the €2 fee are owed by the declarant (see below), but if nobody prepays them the carrier may still ask the buyer for them: that is the €5.00 in the first row. Ask your carrier or shipping service whether it bills them to you, and build them into your EU shipping price. The courier row uses the normal 2.5% rate for silver jewellery, because courier parcels outside IOSS are outside the €3 regime; this point is only partly confirmed (see above). Read more about how the EU counts "items".
From 1 November 2026, product identifiers (PIDs) must be declared to EU customs for every item sold to consumers in distance sales (B2C online orders) in consignments worth up to €150. Declaring them has been voluntary since 1 July 2026; enforcement starts on 1 November. B2B shipments are in principle not concerned. Read our PID guide
Orders above €150
Above €150, IOSS cannot be used. Import VAT and customs duty (normal tariff rate) are due at import, paid by the buyer (DDU) or prepaid by the seller (DDP via a courier).
EU third-country (normal) duty rates in TARIC for origin India on 25 October 2026: silver jewellery (7113 11 00) 2.5%; gold or other precious-metal jewellery (7113 19 00) 2.5%; knitted cotton T-shirts (6109 10 00) 12%; women's cotton dresses (6204 42 00) 12%; silk shawls and scarves (6214 10 00) 8%; wool shawls (6214 20 00) 8%; cotton bed linen (6302 21 00) 12%; incense sticks (3307 41 00) 6.5%; leather handbags (4202 21 00) 3%. These apply above €150, and below €150 when the parcel is neither IOSS nor postal.
EU standard VAT rates range from 17% (Luxembourg) to 27% (Hungary), e.g. Germany 19%, France 20%, Italy 22%, Spain 21%, Netherlands 21%, Ireland 23%. Reduced rates apply to some goods (e.g. books).
Example: one item worth €200.00 sent by courier to Germany on or after 1 November 2026, buyer pays on delivery (DDU). Duty is the normal EU rate; VAT is 19% on the price plus duty; the €2 fee is added per item. Carrier fees are extra.
| Product (made in India) | EU code (CN) | EU duty (third country) | GSP for India | Duty on €200 | VAT 19% | Handling fee | Try it |
|---|---|---|---|---|---|---|---|
| Silver jewellery (not chain by the metre) | 7113 11 00 in the EU TARIC (official site, opens in a new tab) | 2.5% | Suspended (pearls and precious metals) | €5.00 | €39.33 | €2.00 | Open in calculator |
| Gold jewellery | 7113 19 00 in the EU TARIC (official site, opens in a new tab) | 2.5% | Suspended (pearls and precious metals) | €5.00 | €39.33 | €2.00 | Open in calculator |
| Cotton T-shirt (knitted) | 6109 10 00 in the EU TARIC (official site, opens in a new tab) | 12% | Suspended (textiles) | €24.00 | €42.94 | €2.00 | Open in calculator |
| Women's cotton dress (woven) | 6204 42 00 in the EU TARIC (official site, opens in a new tab) | 12% | Suspended (textiles) | €24.00 | €42.94 | €2.00 | Open in calculator |
| Silk scarf or shawl (70%+ silk) | 6214 10 00 in the EU TARIC (official site, opens in a new tab) | 8% | Suspended (textiles) | €16.00 | €41.42 | €2.00 | Open in calculator |
| Wool shawl or scarf | 6214 20 00 in the EU TARIC (official site, opens in a new tab) | 8% | Suspended (textiles) | €16.00 | €41.42 | €2.00 | Open in calculator |
| Incense sticks (agarbatti) | 3307 41 00 in the EU TARIC (official site, opens in a new tab) | 6.5% | 0% with proof of origin | €13.00 | €40.85 | €2.00 | Open in calculator |
| Leather handbag | 4202 21 00 in the EU TARIC (official site, opens in a new tab) | 3% | 0% with proof of origin | €6.00 | €39.52 | €2.00 | Open in calculator |
Codes and rates from TARIC, the EU's official tariff database (European Commission, Taxation and Customs Union, checked 25 Oct 2026, origin India). Duty and VAT are worked out on the item price only; customs charges them on the value including transport to the EU border. Your product may have a different code and rate: check it in our HS code lookup links. The GSP column shows the GSP rate only where a claim is possible; the calculator shows the normal rate.
GSP: what Indian sellers can still claim
From 1 January 2026 to 31 December 2028 the EU has suspended GSP tariff preferences for Indian goods in these sections: mineral products, chemicals, plastics, rubber, textiles and clothing (S-11a), stone/ceramics/glass, pearls and precious metals including jewellery (S-14), iron and steel, base metals, machinery, railway and motor vehicles. Indian clothing, shawls, bed linen and jewellery therefore pay the full third-country rate.
Some Indian products outside the suspended sections still get a GSP rate in the EU tariff, for example incense sticks (CN 3307 41 00: 0% instead of 6.5%) and handbags with an outer surface of leather (CN 4202 21 00: 0% instead of 3%), as shown in TARIC for origin India on 25 October 2026. The preference has to be claimed with proof of origin; otherwise the normal rate applies.
To claim GSP, the exporter makes out a statement on origin and must be registered in the REX system. An exporter that is not registered may still make out a statement on origin for a consignment whose originating products are worth no more than €6,000 in total.
If VAT is collected through IOSS, the €3 duty always applies, even to goods with preferential origin (e.g. UK goods under the TCA). Without IOSS, a preference can only be claimed on a full customs declaration (the 'H1' dataset), not on the simplified low-value ones; preferential goods are then outside the €3 regime, but the Union handling fee (from 1 November 2026) still applies. UK to Ireland customs charges
In practice, for parcels of €150 or less under IOSS or by post, GSP makes no difference: the €3 duty applies anyway. It matters for orders above €150 of products that are not in a suspended section, if your courier files a full declaration and you give it a valid statement on origin.
Selling on Etsy to EU buyers
Etsy says US-bound packages need a 10-digit HTS code and EU-bound packages a 6-digit code. Without one, a package may be delayed or returned.
On Etsy, VAT on EU orders of €150 or less is handled by the marketplace (IOSS), so your EU buyer should not pay VAT again at the door. Ask your carrier or shipping service how it passes on the €3 duty and the €2 fee from 1 November 2026, and build them into your EU shipping price. For the difference between DDP and DDU shipping on Etsy, eBay and Shopify, see DDP vs DAP for marketplace sellers.
Checklist for selling from India to EU buyers
- Put at least the 6-digit HS code, a precise description ("sterling silver earrings", "100% silk stole"), the value and "Country of origin: India" on every customs form.
- Count the different tariff lines in each parcel: each one pays €3 (IOSS or post) and, from 1 November 2026, €2.
- Ship one order in one parcel. A second parcel is a second consignment and the per-item charges start again.
- Selling on your own website? Without IOSS, your EU buyer pays VAT and a carrier fee on delivery, which leads to refused parcels. Consider IOSS (through an EU intermediary) or a carrier DDP service.
- For orders above €150, quote the full EU duty for clothing, textiles and jewellery: GSP is suspended for them until the end of 2028.
- Give your carrier the product identifiers EU customs needs from 1 November 2026: see our PID checklist.
Since 1 July 2026, the declaration for goods sold at a distance in consignments of €150 or less can no longer be invalidated just because the goods were returned after release. So the €3 duty is not refunded through that route. The general refund grounds (for example defective goods or goods not matching the contract, Article 116 of the Union Customs Code) still apply.
The €3 duty and the €2 fee are not refunded when a buyer returns an order; see international returns and duty refunds. Also selling to the US or the UK? See India to US: duty and the 10% Section 301 tariff and India to UK: duty, VAT and the UK–India trade deal. We record every rule change in the change log, including when the EU–India agreement enters into force. Sourcing from China instead? See China to EU duty and anti-dumping.
This page is general information, not legal, tax or customs advice. The Commission's guidance is explanatory and not legally binding; the legal texts take precedence. Whether your goods qualify for GSP depends on the product-specific origin rules. See the disclaimer.
Sources for this page
- Council Regulation (EU) 2026/382 (abolition of €150 duty relief; €3 per item), EUR-Lex. Accessed 20 Oct 2026. Partly verified
- EU Customs Reform, European Commission – Taxation and Customs Union. Accessed 20 Oct 2026. Partly verified
- EU-India trade agreement (state of play and next steps), European Commission. Accessed 25 Oct 2026. Verified
- Council gives final green light to new customs duty rules for small parcels (11 Feb 2026), Council of the EU. Accessed 20 Oct 2026. Partly verified
- Union Handling Fee (UHF) – 1 November 2026 (published 30 Sep 2026), Revenue (Irish Tax and Customs). Accessed 22 Oct 2026. Verified
- Commission Delegated Regulation (EU) 2026/2152 of 21 September 2026 establishing the amount of the Union handling fee (OJ L, 21 Oct 2026), Official Journal of the European Union (EUR-Lex). Accessed 23 Oct 2026. Verified
- Handling fee for e-commerce (last update 22 Oct 2026), Dutch Customs (Douane). Accessed 3 Nov 2026. Verified
- Commission sets Union handling fee at EUR 2 per item (2 Oct 2026), CLECAT (industry association, secondary). Accessed 20 Oct 2026. Verified
- TARIC consultation: measures for imports originating in India (third-country duty, GSP, low-value consignment duty, Union handling fee), codes 7113110000, 7113190000, 6109100010, 6204420000, 6214100000, 6214200000, 6302210000, 3307410000, 4202210000; simulation dates 25 Oct and 1 Nov 2026, European Commission, Taxation and Customs Union. Accessed 25 Oct 2026. Verified
- Questions & answers – EUR 3 customs duty guidance (30 Jun 2026), European Commission. Accessed 20 Oct 2026. Verified
- The temporary EUR 3 customs duty and the Union handling fee: Guidance for Member States and Trade (version of 5 Oct 2026), sections 5.1–5.4 and 6.2 (consignment, item, postal consignments, preferential origin), European Commission, DG Taxation and Customs Union. Accessed 22 Oct 2026. Verified
- Customs formalities for low value consignments (IOSS), European Commission – Taxation and Customs Union. Accessed 20 Oct 2026. Verified
- VAT One Stop Shop: overview of the OSS schemes, deemed supplier and intermediary (import scheme), European Commission. Accessed 26 Oct 2026. Verified
- The temporary EUR 3 customs duty and the Union handling fee: Guidance for Member States and Trade (version of 5 Oct 2026), section 8 Product identifiers, European Commission, DG Taxation and Customs Union. Accessed 21 Oct 2026. Verified
- Guidance and legal text on temporary flat fee on low-value imports (8 Jun 2026, updated 20 Jul 2026), European Commission, DG Taxation and Customs Union. Accessed 22 Oct 2026. Verified
- Product identifiers for e-commerce imports mandatory from 1 November 2026 (news, 3 Nov 2026), European Commission, DG Taxation and Customs Union. Accessed 4 Nov 2026. Verified
- Commission welcomes Council agreement on removing the €150 threshold for the VAT Import One-Stop Shop (9 Nov 2026), European Commission, Taxation and Customs Union. Accessed 10 Nov 2026. Verified
- VAT rules and rates (Your Europe) / VAT rates in Member States, European Union. Accessed 20 Oct 2026. Partly verified
- GSP system updates for the period 2026-2028 (graduated product sections per beneficiary, incl. India), European Commission, Access2Markets. Accessed 3 Nov 2026. Verified
- Commission Implementing Regulation (EU) 2025/1909 (suspension of GSP preferences for certain GSP sections, 1 Jan 2026 to 31 Dec 2028), EUR-Lex. Accessed 25 Oct 2026. Partly verified
- Proof of origin (GSP: REX system and statements on origin), European Commission, Taxation and Customs Union. Accessed 25 Oct 2026. Verified
- Information for Managing International Shipments, Etsy Help. Accessed 10 Nov 2026. Verified
Rules change often: the latest change we tracked was on 10 Nov 2026 (US: the 178 China Section 301 product exclusions are extended to 9 January 2027). Alerts send one short email, with the source, only when a rule changes on a route you pick.