From 1 July 2026 the EU is introducing fixed customs duties on Low Value Imports (LVIs) of goods imported into the EU. LVIs are goods in a consignment with a value of up to €150. Goods up to this value have previously been exempt from duty.
The duties will apply at a rate of €3 per item. The term ‘item’ for these purposes is a HS declaration line (e.g. if a consumer purchases a pair of socks and a shirt, two duty payments of €3 will apply on the basis the two items fall under different tariff codes, however if a consumer buys multiple of the same item (e.g. two pairs of socks), only one €3 duty charge will apply).
In response to these new mandatory laws from the EU, Fruugo will be implementing a duty solution as part of the checkout process which will add duties on to the basket based on the number of different items ordered from you.
What you should and should not do
- You do not need to increase your prices to reflect these new duties.
- Fruugo is adding the duty to the basket checkout as a separate item and therefore we encourage all merchants to keep pricing products as competitively as possible.
- Increasing your prices could double the impact of these new EU duties during the checkout process and you may experience a downturn in sales.
- We understand some marketplaces may ask you to increase prices however you do not need to increase prices on Fruugo given we will add the duty at checkout.
- Please double check your catalogue pricing to ensure it remains competitive in the market.
- Please ensure that you are up to date on all EU Customs laws and that you meet your obligations as a merchant trading into Europe.
Why is Fruugo adding the duty at checkout?
There are a number of reasons why Fruugo has chosen this solution. Fruugo, as the IOSS holder for these imports, is liable for these duties despite the fact that these may be paid via you to the carriers for the carriers to pay these to customs. In addition, our solution allows for the duties to be added to only those low value orders destined for EU consumers, instead of increasing your prices fed to Fruugo which may impact non-EU regions. It also allows for only a single duty amount to be added to the order where a buyer orders multiple of the same item.
Is there an Alternative option?
To mitigate the effects of these changes and improve customer experience, we highly recommend exploring In-Region Shipping. This involves fulfilling orders from a local warehouse or stockholding within the customer’s region (i.e. the EU). With in-region shipping, these fixed duties would not be incurred but standard commercial duties on bulk imports into the EU would potentially apply which are typically value based and likely lower.
In-region shipping has a number of key benefits including improved shipping times to buyers, improved customer trust and lower returns costs due to localised returns within the EU. You may have received previous communications on this matter but if you require further information regarding operating in-region shipping on Fruugo, please do let us know.
Carrier and merchant agreements
We are aware some carriers are seeking payment of these duties from merchants to ensure the continuous flow of goods from 1 July 2026. This is a ‘Delivery Duty Paid’ (‘DDP’) shipment. In order to be satisfied that the duties have been settled we require you to only utilise carriers operating on DDP terms and we will provide further information around this in due course.
Given the delay between an order being placed and the import clearance taking place, we will be implementing this solution from Thursday 25 June 2026 however for orders already placed prior to this implementation that are imported into the EU on or after 1 July 2026 you will need to bear this cost . We also expect carriers may reach out to you ahead of the 1 July in relation to these changes.
This notification is produced for the purposes of Fruugo supporting retailers with understanding the upcoming duty reforms in the EU. This notification is for guidance only and does not constitute legal or tax advice. Should you have any questions we recommend that retailers selling on Fruugo consult with their logistics partners or obtain their own professional legal and tax advice.
