The MU will work to ensure musicians affected by the new legislation are represented at a stakeholder consultation later this year. Image credit: Shutterstock.
The MU has been made aware that as of 1 July 2026, the EU has introduced a new customs charge of €3 per item on low-value parcels worth up to €150.
The change affects merchandise such as CDs, vinyl records, T-shirts and other products sold directly to fans in EU countries by UK-based musicians and small businesses. Further details are available from the European Commission in its announcement on the new measures.
The MU has been in contact with UK Music and the UK Government’s Department for Business and Trade to raise concerns about the impact of these changes on the music sector. The new charge adds to the ongoing challenges facing musicians since the UK left the EU.
How the new charge works
The new customs charge is set at €3 per item.
For example:
- A parcel containing one vinyl LP would incur a €3 charge
- A parcel containing four LPs would also incur a €3 charge, provided the total value remains below €150)
- A parcel containing one LP and one T-shirt would incur a €6 charge, because it includes two separate items.
In addition to the new EU charge, the MU understands that Royal Mail currently charges a £1 handling fee.
New fees could lead to lost merchandise sales for artists
According to information from independent music companies shared with the MU by UK Music, it was initially expected that the new fees would be collected through the existing Import One Stop Shop (IOSS) system used for VAT collection.
However, guidance published confirmed that the fees must instead be paid via carriers using Delivered Duty Paid (DDP) or Postal Delivered Duties Paid (PDDP) services, in the same way that tariffs are charged on Direct-to-Consumer (D2C) deliveries into the US.
This has created a number of practical problems for businesses selling directly to EU consumers. At present, the only way sellers can pass these fees onto customers is by incorporating them into shipping and packaging costs, making it difficult for customers to understand what charges they are paying at the point of purchase. Industry representatives are concerned that this lack of transparency could lead to confusion, and most likely lost sales.
Different rules across EU countries
Industry feedback suggests that different postal services within the EU are implementing the new fees in different ways, creating additional uncertainty for businesses and adding further complications.
Reported issues include:
- Only 19 of the 26 EU countries operate the DDP/ PDDP scheme, meaning there is currently no way to prevent recipients being charged on receipt, even if they’ve already paid at point of purchase
- Even in countries that can manage DDP, customers are reportedly being charged additional handling fees again on receipt of goods
- France appears to be collecting VAT alongside the customs fee, even when VAT has already been collected via IOSS at the point of sale
- New Royal Mail data collection requirements sometimes require multiple items in a parcel to be listed on separate lines, with each line attracting a €3 charge even under the same HS code (Commodity Code)
- Businesses have also reported ongoing difficulties integrating IOSS and PDDP systems, alongside limited guidance from carriers
Further complications for artists sending free promotional items
The situation is particularly challenging for promotional goods that are not being sold.
According to the information shared by UK Music, there is currently no way to send promotional items into the EU without attracting VAT and customs fees. As there is no customer sale involved, these transactions should fall outside the scope of the new rules, but no practical exemption process currently exists.
Another reported issue is that the customs fees are not refunded on returns, and must be paid again for redeliveries – a particularly frustrating situation when items are returned because they have not been processed correctly by the receiving postal service.
Charges expected to increase in November 2026
The current €3 charge is understood to be a temporary measure, and there are plans to levy an additional €2 customs handling fee per parcel from November 2026.
Looking further ahead, the EU is planning to replace the current system with a new customs framework from 2028 that would base custom fees on the value of items being shipped.
Industry concerns remain about whether the proposed simplified customs system could result in duties being applied to music products that would otherwise be exempt under the UK-EU Trade and Cooperation Agreement.
The MU will advocate for musicians affected by the new legislation
The new EU ruling is affecting a wide range of sectors beyond music, including publishing and other creative industries.
The European Commission is expected to launch a stakeholder consultation on the process later this year. The MU will work alongside industry partners, including UK Music and LIVE, to respond and ensure the concerns of musicians are represented.
If you have been affected by this new legislation, please let us know by emailing eutouring@theMU.org.
The MU would like to thank UK Music for its assistance and consent to share this information with members.