Holiday 2026 Cross-Border Orders: US De Minimis, the EU €3 Parcel Duty and a DDP Checklist for Shopify Fashion Brands

Last updated: October 2026

Quick answer: If your Shopify fashion brand ships holiday orders across borders, three rule changes matter this season. The US ended duty-free de minimis treatment for goods from all countries on 29 August 2025, so every parcel into the US now owes duties. The EU began charging a temporary €3 customs duty on low-value parcels under €150 on 1 July 2026, counted per item type rather than per parcel. And the UK has confirmed it will remove its £135 low-value import relief by March 2029. Before Black Friday, check that every product has an HS code and country of origin, decide whether you will collect duties at checkout (Delivered Duty Paid) or leave them to the customer (Delivered At Place), and say so clearly in your shipping policy.

Peak season is when cross-border surprises cost the most. A gift that arrives with a duty bill on the doorstep is the fastest way to turn a happy first-time customer into a refused parcel, a refund request and a one-star review. This year the rules have shifted in all three of the big markets many fashion brands sell into.

This guide is for brands shipping from one country into another, for example a UK or Indian label selling to the US, or a US brand selling to the EU. It summarises what changed, according to US Customs and Border Protection (CBP), the Council of the EU and the UK government's Budget announcements, and then turns it into a setup checklist using Shopify's own guidance on duties and import taxes. It is a practical overview, not legal or customs advice; confirm specifics with your carrier or customs broker.

What changed in the US, EU and UK

United States: no more duty-free low-value parcels

CBP's cargo systems bulletin says that from 12:01 a.m. on 29 August 2025, "goods of all countries entering the United States" are no longer eligible for the duty-free de minimis exemption. For non-postal shipments, CBP says filers must submit a formal or informal entry in its ACE system with payment of all duties, taxes and fees. For postal shipments, CBP says carriers or other qualified parties must collect and remit duties under methodologies it set out separately.

What it means for you: if you ship from outside the US, every holiday order into the US now carries duty, whatever its value. Someone pays it: you at checkout, or your customer at the door.

European Union: a €3 duty per item type from 1 July 2026

The Council of the EU says a temporary €3 customs duty now applies to items in small parcels valued under €150 entering the EU, and that it is charged "per item category and not per parcel." Its own example: a parcel with two toys, one coat and three bottles of shampoo counts as three categories, so €9. Accounting firm Crowe, summarising the December 2025 Council agreement, notes the categories are expected to be distinguished by six-digit tariff codes and that the charge applies where the seller uses the Import One Stop Shop (IOSS) for VAT.

The Council says this interim duty stays until the EU customs data hub is running, and that the €150 duty exemption itself will be removed, with duty charged "from the first euro," from 2028. A separate handling fee on small e-commerce consignments was agreed on 26 March 2026, but the Council page does not yet give an amount or start date.

What it means for you: a mixed fashion order (a dress, a belt and a pair of earrings) can attract more than one €3 charge. Bundles and gift sets change the maths, so check how your products are classified.

United Kingdom: £135 relief on its way out

At the Autumn Budget on 26 November 2025, the UK government confirmed it intends to remove the Low Value Import relief for goods valued at £135 or less, with new arrangements due by March 2029 at the latest, according to Crowe's Budget summary. A consultation ran to March 2026. Nothing changes for this Christmas, but it is worth knowing if you are planning a UK expansion for 2027 and beyond.

Delivered Duty Paid or Delivered At Place: choosing for the holidays

There are two ways to handle duties on an international order:

• Delivered Duty Paid (DDP): you collect an estimate of duties and import taxes at checkout and pay them to the carrier, so the parcel arrives with nothing to pay. Shopify describes the goal plainly: shipments can otherwise incur charges on arrival, so "you can collect an estimate of those amounts at checkout instead."

• Delivered At Place (DAP): you ship without collecting duties, and the customer pays them, usually to the carrier, before delivery.

For gifts, DDP is usually the kinder choice. The person receiving a gift is often not the person who bought it, and an unexpected bill lands on them. DAP can still make sense if you mostly sell high-value pieces to repeat customers who understand the process, or if your carrier does not support DDP to a given destination. Whichever you choose, write it into your shipping policy and product pages before Black Friday traffic arrives.

A pre-Black Friday checklist for duties on Shopify

Shopify's Help Center lists several tasks for merchants collecting duties and import taxes at checkout. These are the ones that matter most in peak season:

• Fill in HS codes and country of origin for every product, including gift sets and limited drops. Shopify specifically warns that for flash sales you should confirm sale products have an HS code, country or region of origin and product category, so duties are estimated accurately. New holiday SKUs are the ones most often missing them.

• Buy DDP labels, not standard labels, when you collected duties. Shopify warns that otherwise "your customer pays for the duties and import taxes twice." It also says the label details must match what Shopify used to calculate duties, or the mismatch "might cause additional charges."

• Get the commercial invoice right. Shopify says every international order needs one, with DDP as the terms of delivery if duties were paid, or DAP if not. The HS code, country of origin, price after discounts, quantity and collected duties should match the Shopify order. Discounts matter here: a 40% Black Friday price must be the price on the invoice.

• Decide what happens during flash sales. Shopify suggests considering turning off duty collection during a sale, or verifying the sale products' data first. If you have hundreds of new SKUs going live, the first option may be safer than half-complete data.

• Update your shipping policy and notifications. Shopify notes that default order confirmation and refund emails include a Duties line automatically, but customised templates need a code update. If your emails are heavily customised for the holidays, check them.

• Plan refunds before returns season. Shopify says you decide how to refund duties and import taxes, and that the carrier does not return money spent on DDP labels. Put your rule in the returns policy now, before the January returns wave. Our guide to turning holiday returns into January exchanges covers the rest of that season.

• Audit your first carrier invoice. Shopify advises comparing what you charged at checkout with the customs charges at the destination after your first carrier invoice, and periodically after that. In peak season, do it weekly.

Product and merchandising choices that affect duties

Duties are not only an operations problem. A few merchandising decisions change what international customers pay:

• Gift sets and bundles. Under the EU's per-category approach, a bundle of a scarf, gloves and a hat may count as several item types. Price bundles for EU customers with that in mind, or offer single-category gift sets.

• Country of origin. Duty rates depend on where a product was made, not where you ship from. Make sure the origin you enter is accurate for each SKU, especially if production moved between seasons.

• Delivery promises. Customs clearance adds time. Build that into international cutoff dates; our US holiday shipping cutoffs guide shows how to set and display a delivery promise.

• Clear product-page copy. A short line such as "Duties included at checkout for US, EU and UK orders" removes a common reason for hesitation at checkout.

How an AI shopping assistant helps with cross-border shoppers

International shoppers ask more questions before they buy: will this arrive in time, will I pay anything on delivery, how does the sizing compare. An AI shopping assistant can answer those questions in the moment, alongside styling help, instead of sending the shopper to a policy page. Industry benchmarks suggest the upside is real: AI shopping assistants are associated with 4x conversion rates (Neuwark 2026) and 25% higher average order value (Rep AI 2025). These are industry benchmarks, not Elara results.

Elara for Commerce is an AI shopping assistant built for fashion brands on Shopify. It styles complete looks from your catalog, offers virtual try-on, and attributes revenue to each styling conversation, so you can see what international shoppers ask for during peak season.

FAQ

Is there still a de minimis exemption for parcels into the US?

No. CBP says duty-free de minimis treatment was suspended for goods of all countries from 29 August 2025. Duties apply to US-bound parcels regardless of value.

How does the EU €3 parcel duty work?

According to the Council of the EU, from 1 July 2026 a temporary €3 customs duty applies to items in parcels under €150, charged per item category rather than per parcel. A parcel with three different types of item would owe €9.

Has the UK removed the £135 customs relief?

Not yet. The UK confirmed at the November 2025 Budget that it intends to remove the Low Value Import relief, with new arrangements due by March 2029 at the latest.

Should I collect duties at checkout for holiday orders?

For gifts, collecting duties at checkout (DDP) usually gives the recipient a better experience, because nothing is owed on delivery. If you do, Shopify says to buy DDP labels so customers are not charged twice.

What product data does Shopify need to estimate duties?

Shopify says products need an HS code, country or region of origin and product category, and it recommends checking these for flash-sale products before peak events.

See Elara on your store before peak season

If you want an AI shopping assistant that can style, answer and sell to shoppers in every market you ship to, book a demo or start the 30-day free trial of Elara for Commerce.