Dropshipping from China in 2026: what a parcel really costs – duty, handling fee, IOSS

A €12 product from China now easily costs the customer €20 or more. Anyone dropshipping into the EU needs to understand the new charges before setting prices. Here is the maths – as of 19 October 2026, with sources.

The three charges added in 2026

1. €3 duty per item line – since 1 July 2026 on every consignment up to €150 of goods value from a third country to a consumer, until 1 July 2028 (Regulation (EU) 2026/382). The former duty relief up to €150 is gone.
2. €2 EU handling fee per item line – set in delegated act C(2026) 6694, expected to apply from 1 November 2026. No value threshold, no end date, non-refundable (Art. 20 of the new Union Customs Code (EU) 2026/2108).
3. Import VAT and the carrier’s clearance fee – not new, but they now hit every parcel because simplified clearance ended with the relief. With IOSS the customer pays neither at the door.

“Per item” does not mean “per piece”

Counting is per line of the customs declaration: goods with the same tariff heading (the 6-digit HS code in the usual H7 procedure) and the same description are one item, whatever the quantity. Five identical T-shirts: €3 + €2. A T-shirt and a watch: €6 + €4. Socks, a plush toy and a cable: €9 + €6 (examples from the Commission and German customs).

Two things drive the cost: basket breadth and split shipments. Every parcel is its own consignment with its own €150 threshold and its own item count. An order that two suppliers ship in two parcels pays everything twice.

Worked examples

Goods value is the price of the goods without shipping when shipping is shown separately. Above €150 the product’s regular tariff rate replaces the €3 (many electronics 0 %, textiles up to 12 %) – the €2 fee stays.

Then VAT

Without IOSS (order 1, delivered to Germany): import VAT of 19 % on goods + shipping + duty + fee = 19 % of €57 = €10.83. The carrier collects €10 in charges, €10.83 in tax and its own service fee from the customer – on €42 of goods. That is where complaints and refused deliveries come from.

With IOSS: you charge 19 % on €47 = €8.93 at checkout. The €10 duty and fee are owed by the declarant – your IOSS intermediary or you – and end up in your costing. The customer pays nothing at the door. If you charge the €2 fee to the customer separately, the customs guidance of 5.10.2026 puts it into the IOSS VAT base; for the €3 duty this is not settled – ask your tax adviser.

Five decisions for dropshipping shops

1. IOSS – yes or no? With IOSS the checkout price is the final price. Without it the carrier decides fees and timing, and you keep the returns. Above a few dozen parcels a month an IOSS intermediary almost always pays off.
2. Charge or only show the charges? Either you collect duty and fee in the cart (DDP) or you show them as information and the customer pays on delivery (DAP). Showing them is mandatory either way – consumer law requires additional costs to be stated before the order.
3. Assortment and shipping rules. Bundles within one tariff heading are cheaper than mixed baskets. Check your free-shipping threshold: a parcel with €160 of goods pays no €3 duty but the tariff rate.
4. Product data. Every product needs a 6-digit HS code, otherwise every order line becomes an item. From 1 November 2026 customs also require product identifiers (your SKU, GTIN/EAN) for consignments up to €150.
5. Returns and national fees. Duty and fee do not come back on a return. Romania adds 25 lei per parcel, Italy plans €2 from 1 December 2026, France’s fee has been suspended since July.

Checklist

• HS code (6 digits) and country of origin on every product; work through the list of products without a code.
• Ship-from per product or supplier: third country, or an EU warehouse with cleared goods (then no €3/€2).
• IOSS / DDP / DAP decision recorded; checkout shows duty and fee per consignment.
• Prices recalculated: €5 per item line on average – for small baskets that is the difference between margin and loss.
• Watch the handling-fee date: publication of C(2026) 6694 in the Official Journal, expected late October 2026.
• Evidence per order: lines, amounts, rule version – for the carrier, the intermediary and audits.

Note: this guide is not legal or customs advice. Sources: Regulation (EU) 2026/382; Commission guidance on the €3 duty and the handling fee (version 5.10.2026); zoll.de; Union Customs Code (EU) 2026/2108.