2026 will bring major changes to customs and duty processes, in both the UK and EU member states. From new parcel duties to the removal of low-value thresholds and the introduction of a vaping excise tax, importers and exporters are faced with increased costs and tighter compliance requirements.
So, what’s the best way for businesses and e-commerce sellers to deal with shifting UK customs rules and rules in the EU market? To partner with an experienced, reliable distribution expert like John K Philips. Our experts are here to offer the world-class knowledge and support your business needs to navigate these alterations without causing disruption, delays or financial losses. Speak with a member of the team today, or keep reading to learn more.
Changes You Should Know About
EU Customs – the €3 Parcel Duty
Until now, those sending shipments to the European Union have benefited from a low-value relief threshold. In other words, if the value of your parcel fell below €150 (£126 approx.) you were exempt from paying any customs duties. But that’s about the change.
From July 1st 2026, this system will be replaced with a €3 flat fee. But here’s the crucial part: The new charges are on a per-item basis, not per parcel. This means that even if a parcel contains numerous types of goods all falling below €150 in value, the sender will need to pay €3 for every item within the parcel, which can stack up pretty quickly.
The solution? Rather than your business sending multiple individual parcels, which could set you back a small fortune under the new rules, you could send one single, consolidated pallet with everything via John K Philips. That way, you’ll avoid excessive fees and keep your shipment costs as low as possible.
The UK £135 Threshold Removal
In a similar vein to our previous point, the UK is following suit with the EU by altering how it charges for low-value imports.
The duty-free relief of £135 is going up in smoke, meaning importers in the UK will need to pay all duty fees as soon as the shipment arrives on UK soil. The government has said this will be implemented by 2029 at the latest, and may even come into effect after December 2026.
For businesses, this can create a serious “cash flow cliff” that results in significant payments before an item is even listed for sale here.
But John K Philips’ bonded warehousing can help with this. With a bonded warehouse, you can store imported goods without paying duty immediately. Rather, you’ll only pay any duty fees once you’ve sold the product in question. This can help you boost your cash reserves and streamline your finances by avoiding upfront tax payments.
Chat to a member of the team about bonded warehousing now.
2026 Vaping Products Duty
This is an interesting one. From October 1st 2026, the UK government will apply a flat-rate excise duty of £2.20 per 10ml of vaping liquid. This new tax applies to all vaping liquids, whether they contain nicotine or not.
On top of this, HMRC is introducing a physical “Duty Stamp” that must be affixed to the packaging before it can be released for consumption. This not only helps combat illicit trade, but it also helps HMRC track products back to their manufacturer or importer when necessary.
Naturally, this places a lot of stress on businesses in the vaping trade. But with HMRC-approved storage from John K Philips, you can relieve yourself of some of these burdens, knowing you can store your vape-related goods in a warehouse that’s built to meet all existing regulatory standards, as well as the new ones.
Plus, our pick and pack infrastructure can offer this new necessary stamping, so your clients know your stock is valid and legal long before it hits the shelves.
Choose John K Philips as your Distribution and Warehousing Provider in 2026 and Beyond
If you’re still baffled by any of the above, including customs duty relief, EU commodity codes, new customs arrangements, VAT collection and more, here’s an easy way to think about the new customs rules. 2026 will bring:
- Higher parcel costs
- Immediate fixed customs duty liabilities
- New excise-style customs clearance requirements
- Increased documentation responsibility
That means rising costs and potential logistics issues across the board, including e-commerce businesses.
The smartest thing affected businesses can do right now is to review their current setup and ensure they’re working with partners who can manage any upcoming changes carefully and effectively, ticking every box.
Whether it’s our bonded warehousing services or our distribution options, or something else entirely, we’re here to help you move forward without being disproportionately impacted by the new rules, so your business can grow with confidence. With over 50 years of experience, we like to think we’ve got what you need. Want to know more? Speak to a member of the team today.