ZigZag has partnered with Trade Duty Refund (TDR) to launch a new EU duty drawback service aimed at helping UK retailers recover import costs on returned goods, as cross-border trade becomes more complex and expensive.
The integrated service combines ZigZag’s returns management platform with TDR’s digital claims technology, enabling retailers to reclaim duties paid on items shipped to EU customers and later returned. The move comes ahead of significant EU customs changes due from 1 July 2026, including the removal of the €150 duty-free threshold and the introduction of a €3 flat customs charge on low-value parcels.
These reforms are expected to increase costs for UK retailers selling into the EU, particularly in high-return categories such as fashion. ZigZag’s own research found that 24% of clothing purchases were returned in 2025, highlighting the growing financial impact of returns in cross-border ecommerce.
Matthew Jacques, chief operating officer at ZigZag, said: “The customs landscape is becoming more complex, with more paperwork, more delays and more costs. As EU duty rules tighten, retailers need a scalable and compliant way to protect margins on cross-border returns. Managing duty drawback is a cumbersome process for retailers, and one they desperately need to get right.”
He added that the partnership delivers “the first fully integrated solution in the market, designed for modern ecommerce”, combining returns management with automated duty recovery.
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