Businesses in Scotland that export small parcels to the EU with a value below €150 per item face a €3 duty for each one from July.
They are being urged by UK top 10 accountancy and business advisory firm Azets to plan now for the changes - and model the impact on the bottom line.
Gordon Baird, Azets’ new customs and duty tax director for the UK, said: “For local exporters and supply chain managers, this development has strategic and operational implications.
“First, there are the cost pressures – the €3 duty per item type could erode margins, especially for businesses dealing in low-value, high-volume goods. Packages containing several item types may incur a separate duty charge for each item type.
“Secondly, on pricing strategies, local companies must decide whether to absorb the cost, pass it on to customers or restructure product bundles to minimise item types per shipment package.
“Thirdly, they need to consider the customer experience – additional charges and potential delays could impact customer satisfaction if not managed proactively.”
Gordon Baird, Azets’ new customs and duty tax director for the UK
Edinburgh-based Gordon has a key role in advising Azets’ growing client base on customs and duty tax issues that arise during cross-border trading.
He said: “Given the increasingly complicated customs and duty tax regime it is vital that SMEs and corporates adopt a strategic approach to the management of their tax obligations, along with the curve ball being thrown this July with the €3 duty per item.
“The duties are being brought in to close a loophole that allowed non-EU sellers to undercut EU businesses.”
Exporters are also being urged to factor in compliance complexity from July - customs declarations will require greater accuracy and local businesses using the Import One-Stop Shop (IOSS) must ensure systems are updated.
There are also duty reclaims to think about - customer returns will require companies to take additional steps to recover duties in EU countries.
Gordon said: “The countdown to this July has begun. Our advice is to act now. Businesses that prepare early will avoid unexpected costs, compliance risks and customer dissatisfaction.”
Azets, which has offices in Aberdeen, Ayr, Edinburgh, Glasgow, Inverness and Perth, suggests how to prepare for the regulatory change:
- Conduct a full impact assessment
- Audit EU export operations
- Review pricing and logistics strategy
- Ensure compliance mechanisms (VAT, customs data, IOSS) are fully aligned
- Prepare customer-facing communications and internal protocols.
Gordon added: “There is some good news – the interim measure will remain in place until 2028, when a full customs overhaul is expected to abolish the low-value exemption entirely and align duties with product classification.
“However, we also expect a Customs handling fee to be implemented in the last quarter of this year, which is in addition to these €3 duties.”