If you’re looking for an explanation of the new EU import duty rules coming into effect on 1 July 2026, there are already some excellent resources available.
- Official European Commission guidance: https://taxation-customs.ec.europa.eu/news/guidance-and-legal-text-temporary-flat-fee-low-value-imports-which-will-apply-until-1-july-2028-2026-06-08_en
- Royal Mail’s practical overview for UK businesses: https://www.royalmail.com/europeantradeinsights
Rather than repeating what’s already been written, this article focuses on something more useful: what ecommerce brands can do to reduce the impact of the new rules.
1. Review Your HS Classifications
This is probably the biggest opportunity.
Many brands have accumulated HS codes over several years, often using different suppliers, customs brokers and often just quickly added to inventory records to get an order out quickly.
It’s worth carrying out a full review to check:
- Are similar products classified differently?
- Are products using unnecessarily specific commodity codes?
- Could some products legitimately be declared under the same HS6 heading instead of using more detailed 8 or 10-digit classifications?
The objective is not to change classifications simply to reduce duty. Your commodity codes must always remain accurate.
Pay particular attention to products that are commonly purchased together, as these are where a review is most likely to deliver savings.
2. Analyse What Customers Buy Together
Look at your most common product combinations and identify where customers regularly purchase several different tariff headings within the same order.
Those combinations are where the additional customs costs will have the biggest impact.
Understanding these purchasing patterns allows you to redesign offers around products that naturally fall within the same customs classification where appropriate.
3. Rethink Your Bundles
Bundles suddenly become much more strategic.
Instead of building bundles purely around best sellers, consider whether you can create bundles using products that already share the same HS classification.
Customers still receive great value, while reducing the number of customs duty charges applied to the shipment.
4. Optimise Checkout Upsells
Well optimised stores will already recommend additional products at checkout.
Now those recommendations have another consideration.
If two products perform similarly, consider prioritising the recommendation that shares the same customs classification as the item already in the customer’s basket.
A small tweak to your upsell strategy could reduce customs costs for customers without negatively affecting average order value.
5. Build the Cost Into Your Promotions
If you’re passing some or all of the new customs duty onto customers, it may be worth redesigning your promotions.
The additional discount can effectively offset part (or all) of the new customs duty, making the overall purchase feel just as attractive.
6. Review Subscription Frequencies
Subscription businesses have another opportunity.
Instead of shipping every month, consider shipping every two months with twice the quantity.
Customers receive exactly the same amount of product over time, but the number of imports, and therefore the number of customs charges, is effectively halved.
As an added bonus, you’ll reduce shipping and fulfilment costs too.
7. Simplify Your Product Catalogue
Take a fresh look at your catalogue.
Ask yourself:
- Are there products that generate very few sales?
- Are there unnecessary variations?
- Could some accessories be consolidated?
- Are there duplicate products serving the same purpose?
A leaner catalogue often improves profitability anyway, and these new customs rules make that exercise even more worthwhile.
8. Speak to Your Fulfilment Partner
For brands using a 3PL or if you are a Packed Posted client, we may already have the data needed to identify savings.
A good 3PL can help you identify:
- Frequently purchased product combinations
- Inconsistent commodity code usage
- Opportunities to redesign bundles
- Ways to reduce customs costs without affecting customer experience
The biggest savings may not come from changing your products but from changing how they’re sold, bundled or fulfilled.
Final Thoughts
This change is a blow to brands. There is no getting around that. But a review of your commodity codes, product bundles, checkout recommendations, subscriptions and fulfilment strategy could significantly reduce the impact of the new rules, while also improving conversion rates, simplifying operations and increasing average order value.
If your competitors are also based outside the EU – this could be your opportunity to get a step ahead.