A quick overview of how customs clearance works, the documents required, and what businesses need to ensure their goods move through customs smoothly.
The European Union has fundamentally altered the landscape of global e-commerce by eliminating its long-standing "de minimis" value thresholds for imports. As of 1 July 2021, the €22 VAT exemption for low-value parcels was abolished, meaning all goods imported into the EU are now subject to VAT. Building on this, the EU is now moving to scrap the €150 customs duty exemption, a change that will impact the final landed cost for a vast number of products. This major policy shift aims to level the playing field for EU businesses, combat tax fraud, and modernise customs processes. To manage this new system, the EU introduced the Import One-Stop Shop (IOSS), a platform designed to simplify VAT collection for non-EU sellers.
DDP and DDU differ in who pays import duties and taxes. Under DDP, the seller pays all customs charges and handles clearance, making delivery easier for the buyer. Under DDU, the buyer pays these fees when the parcel reaches customs. Choose DDP if you want to offer customers a clear total price. Choose DDU if you prefer the buyer to handle import costs. Use our duty calculation tool to check duties and taxes before shipping.