CUSTOMS,DUTIES& TAXES.
Everything you need to know about import charges when sending parcels from the Isle of Man — including the EU's new €3 duty from July 2026, the removal of the US $800 threshold, and what DDP means for your customers.
Isle of Man → UK: No customs, no duties, no declarations. The IOM and UK share a common customs and VAT area — parcels move freely between the two.
Recent regulatory changes
Two major markets have recently changed their import rules. If you ship to the EU or USA, read this carefully.
EU — effective 1 July 2026
Now in effectThe EU's €150 duty-free de minimis has been abolished. All commercial imports into the EU now attract a flat-rate customs duty of €3 per item category (CN tariff sub-heading), regardless of value.
This is an interim measure until the full EU Customs Reform in 2028, when standard tariff rates will apply. EU VAT continues to apply to all imports as before.
USA — effective 29 Aug 2025
In effect since Aug 2025The US $800 duty-free de minimis was removed for all countries. All commercial shipments to the USA are now subject to US tariffs and duties regardless of value.
Tariffs vary by product and may include Most Favoured Nation tariffs, IEEPA reciprocal tariffs, and Section 232 tariffs — these can stack. Only personal gifts under $100 retain a limited exemption.
EU Duty — How It Works
THE €3 EU DUTY
EXPLAINED.
The new EU duty is not charged per parcel or per item — it is charged per item category, based on the CN (Combined Nomenclature) tariff code. Understanding this is important for multi-item orders.
Worked examples
Source: EU Council, February 2026. Interim rate until EU Customs Reform 2028.
Per category, not per item
Two identical T-shirts in one parcel = one €3 charge. A T-shirt and a hat (different CN codes) = two €3 charges (€6 total).
Full customs declaration now required
Every EU-bound parcel must carry a complete customs declaration with accurate HS/CN codes, product descriptions, and declared values. Incorrect classification risks delays and penalties.
EU VAT still applies separately
The €3 duty is on top of EU import VAT (typically 19–25% depending on the member state). VAT has always applied to all EU imports — this has not changed.
Interim until 2028
The €3 flat rate is a temporary measure. Once the EU Customs Data Hub is operational (expected 2028), standard tariff rates based on HS classification will apply instead.
Quick Reference
DUTIES BY
DESTINATION.
Key import duty thresholds and VAT rules for popular destinations from the Isle of Man.
| Destination | Duty threshold | Notes | DDP recommended |
|---|---|---|---|
🇬🇧 Isle of Man → UK No customs | No customs | IOM & UK share a common customs & VAT area — no duties, no declarations | — |
🇪🇺 EU (all 27 states) Changed Jul 2026 | €3 per item category | EU VAT applies to all imports (0% threshold). €3 flat duty per CN tariff sub-heading from 1 July 2026, until full EU Customs Reform in 2028. | |
🇮🇪 Ireland Changed Jul 2026 | €3 per item category | EU member — same rules as EU. 23% Irish VAT on all imports. €3 flat duty per CN code category from 1 July 2026. | |
🇺🇸 USA Changed Aug 2025 | No threshold | De minimis ($800) removed 29 Aug 2025. All commercial shipments now subject to US tariffs and duties. Gifts under $100 retain limited exemption. | |
🇨🇦 Canada Low threshold | CAD $20 | Very low threshold — almost all commercial parcels attract GST (5%) and provincial taxes. DDP strongly recommended. | |
🇯🇵 Japan Low threshold | ¥10,000 (~£50) | Consumption tax (10%) applies above threshold. DDP recommended for most commercial shipments. | |
🇸🇬 Singapore Standard | SGD $400 | GST (9%) applies to all imports. Efficient customs environment with fast clearance. | — |
🇦🇺 Australia Standard | AUD $1,000 | GST (10%) applies to all imports since 2018. Duty applies above AUD $1,000. | — |
Thresholds correct as of July 2026. Rates and rules are subject to change — contact us for the latest guidance on any specific destination.
Incoterms
DDP vs DDU —
WHAT'S THE DIFFERENCE?
How you handle duties and taxes at the point of shipping has a direct impact on your customer's experience — and whether they actually receive their parcel.
DDU
Delivered Duty Unpaid
- Recipient charged on arrival
- Surprise bill — often unexpected
- Parcel held until payment made
- Higher rate of refused deliveries
- Poor customer experience
- Increased returns and disputes
DDP
Delivered Duty Paid — recommended
- All charges paid upfront by sender
- Recipient receives parcel — no extra cost
- Faster customs clearance
- Fewer refused or abandoned deliveries
- Professional, transparent customer experience
- Twyft calculates and settles all charges
Glossary
KEY TERMS
EXPLAINED.
International shipping comes with a lot of jargon. Here's what the key terms actually mean.
De minimis
The threshold below which imported goods are exempt from customs duty. The EU abolished its €150 threshold on 1 July 2026. The USA removed its $800 threshold in August 2025. The UK's £135 threshold remains until March 2029.
DDP — Delivered Duty Paid
The sender pays all import duties, taxes, and customs clearance charges upfront. The recipient receives their parcel with no additional charges. Twyft recommends DDP for all EU, US, and Canadian shipments.
DDU — Delivered Duty Unpaid
The recipient is responsible for paying import duties and taxes on arrival. This can lead to surprise charges, delayed delivery, and refused or abandoned parcels.
IOSS — Import One Stop Shop
An EU VAT scheme for e-commerce sellers. Allows VAT to be collected at point of sale rather than at import, giving customers a smoother experience. Relevant for all shipments to EU consumers following the abolition of the €150 de minimis.
CN22 / CN23
Customs declaration forms required for international parcels. CN22 for lower-value items; CN23 (with commercial invoice) for higher-value goods. Required for all parcels leaving the IOM/UK customs area.
HS / CN Code
Harmonized System (HS) codes classify goods for customs purposes. The EU uses CN (Combined Nomenclature) codes — an 8-digit extension of the HS code. The €3 EU flat duty is charged per distinct CN tariff sub-heading in a parcel.
Tariff
A tax levied by a government on imported goods, calculated as a percentage of the declared customs value. Tariff rates vary by product type and destination country.
VAT on imports
Most countries charge VAT (or equivalent consumption tax) on imported goods. In the EU, VAT applies to all imports regardless of value — there is no VAT-free threshold. The rate varies by EU member state (typically 19–25%).
FAQ
CUSTOMS
QUESTIONS ANSWERED.
NOT SURE WHAT
APPLIES TO YOU?
Our team knows the rules for every destination we ship to. Tell us where you're sending and what you're shipping — we'll handle the rest.