Paweł Zakielarz, CEO of Shopreturns, explains why UK retailers could end up paying customs twice after July 2026, as double-duty becomes a real risk for retailers selling cross-border.
The upcoming €3 customs charge on low-value imports has already attracted the attention of ecommerce businesses across Europe. But according to logistics experts, the fee itself may not be the biggest challenge. For many UK retailers selling into the European Union, the more significant risk could emerge when products come back.
From 1 July 2026, the European Union will abolish the €150 customs exemption for low-value imports arriving from non-EU countries. As part of the transition period, shipments below this threshold will become subject to a new €3 customs duty mechanism and full customs procedures.
While much of the discussion has focused on the impact of the new fee on imports, far less attention has been paid to what happens when customers decide to return products.
Returns may trigger a second customs event
For years, cross-border ecommerce was largely designed around getting products to customers quickly and efficiently. Returns were treated primarily as a customer service process.
The new customs environment changes that equation.
A typical transaction may now involve:
- export from the UK to an EU customer,
- customs clearance on arrival,
- customer return,
- transport back to the UK,
- additional customs procedures upon re-entry.
The new €3 customs charge per parcel is attracting considerable attention across the market, but in reality it may prove to be the least significant challenge. A far greater risk lies in customs and tax compliance errors. In one case we analysed, a company was charged more than £33,000 due to the incorrect handling of cross-border VAT obligations. From July 2026 onwards, every return could potentially become another customs event, and businesses lacking proper documentation, traceability and process control may face costs that far exceed the value of the new duty itself.
Without the right documentation and customs processes, retailers may face a situation where the same product generates customs-related costs more than once during its lifecycle.
Industry specialists increasingly refer to this as a double-duty trap.
Many retailers are focused on the new €3 duty, but the bigger challenge often begins when the product comes back. Returns are no longer just a customer service issue – they are becoming a customs and data management issue. Without proper traceability, businesses may find it difficult to recover costs or benefit from available customs relief procedures.”
Why high-return categories are most exposed
The issue is particularly relevant for sectors where returns are already part of the business model. Fashion, footwear, lifestyle and marketplace sellers often operate with return rates exceeding 20–30%, while some categories experience even higher levels. At this scale, even relatively small customs-related costs can accumulate rapidly. For retailers processing thousands of international orders every month, the financial impact may extend well beyond the new €3 charge itself. At 2,000 monthly orders and a 30% return rate, retailers could be leaving more than €21,000 per year in recoverable customs duties on the table, before accounting for VAT recovery and potential re-import costs. The challenge becomes especially visible among UK businesses shipping directly to consumers across multiple European markets without local returns infrastructure.
The role of Returned Goods Relief
The UK customs system includes a mechanism designed to prevent unnecessary double charging. Under Returned Goods Relief (RGR), goods returning to the UK may qualify for relief from additional import duties, provided businesses can demonstrate that the products being re-imported are the same goods that originally left the country.
In practice, however, this requires extensive documentation and operational consistency.
Retailers may need to maintain:
- original export declarations,
- customs reference numbers (MRNs),
- tracking history,
- proof of return,
- product verification records,
- links between export and re-import movements.
Without this audit trail, recovering costs or avoiding additional customs exposure becomes considerably more difficult.
The real problem is operational complexity
According to industry experts, the challenge is no longer limited to customs compliance alone. Many ecommerce businesses still manage cross-border operations through a patchwork of disconnected systems, where ecommerce platforms, warehouse operations, returns management, customs declarations and carrier networks function largely independently of one another. As customs requirements become more complex, maintaining visibility across the entire lifecycle of a product from export and delivery to return and re-import is becoming increasingly important. Businesses that lack operational consistency and connected data flows may find it more difficult to manage returns efficiently, recover costs and comply with evolving customs requirements.
The biggest misconception is that these changes are only about an additional fee. In reality, they expose weaknesses in how many companies manage returns, customs data and reverse logistics. The businesses adapting fastest are those connecting all three into a single operational process.
Local returns infrastructure may become a competitive advantage
To reduce complexity, many retailers are already reassessing how returns move across borders. One increasingly popular approach involves local return addresses and consolidation hubs within the European Union. Rather than shipping every returned item directly back to the UK, retailers can process returns locally before organising consolidated exports. This approach reduces customs complexity, improves documentation accuracy and traceability, simplifies duty recovery procedures and shortens return cycles. It also enables faster inventory recovery and helps lower the overall cost of handling international returns.
The goal is not simply to move products more efficiently. The goal is to create a documented and traceable process that allows retailers to manage returns without unnecessary customs friction. The fewer border crossings involved and the better the documentation, the easier it becomes to protect margins.
A strategic issue rather than a compliance issue
For many retailers, the July 2026 reform is being viewed primarily as a customs update. Experts argue it should instead be treated as a broader operational transformation. Businesses that continue to manage customs, returns and logistics as separate functions may face increasing costs, slower recovery cycles and growing administrative burdens. Those that redesign their cross-border operations early may be better positioned to maintain margins and customer experience as customs requirements continue to evolve. The question is no longer whether the €3 charge will affect ecommerce. The question is whether retailers are prepared for a world in which every return can become a customs event.
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