Core Viewpoint - The European Union (EU) will impose a temporary fixed customs duty of €3 on small parcels valued under €150 entering the EU from non-EU countries, effective July 1, 2026, to address unfair competition, health and safety risks, fraud, and environmental concerns [2][6][8]. Group 1: Customs Duty Implementation - The €3 customs duty will apply to each item based on its tariff classification, meaning that multiple items in a single package could incur multiple duties [2][4]. - This measure will affect 93% of e-commerce transactions to the EU, as it targets non-EU sellers registered in the EU's Import One-Stop Shop (IOSS) for VAT purposes [2][6]. - The duty is part of a broader reform, with a permanent arrangement expected to be finalized by 2028, which will eliminate the customs duty exemption for small parcels [2][8]. Group 2: Impact on Sellers - The fixed €3 fee could significantly impact the cost structure for low-priced goods, potentially consuming a large portion of profit margins, especially for items priced around €10 [8][9]. - Sellers may face increased operational complexity due to the requirement to classify goods by category for tax purposes, which could lead to higher compliance risks [8][9]. - The EU's decision is driven by the need for fair competition, as the current duty-free status for small parcels has created an uneven playing field for local sellers [6][8]. Group 3: Strategic Adjustments for Sellers - Companies are encouraged to optimize product offerings by reducing low-cost items and increasing the proportion of high-value products to mitigate the impact of the new customs duty [9]. - Establishing overseas warehouses in the EU is recommended to avoid customs duties and improve logistics efficiency, potentially reducing delivery times from weeks to 2-5 days [9][11]. - The shift in policy reflects a global trend towards stricter cross-border e-commerce regulations, with similar measures being adopted in the US and UK [13][14].