SingPost to streamline EU-bound shipments under new Customs rules from Nov 1

SINGAPORE – Singapore Post (SingPost) will move all commercial shipments to 16 EU destinations to a Delivered Duty Paid (DDP) framework from Nov 1, ahead of new customs requirements taking effect.

The move aims to reduce shipping delays, border rejections and unexpected tax charges for recipients, the national postal service provider said on Oct 28.

SingPost had earlier warned of a sharp initial decline in low-value parcel volumes to the EU following the introduction of €3 (S$4.28) customs duty in July.

Its vice-president for international affairs and commercial, Lee Hon Chew, said in June that a similar decline had occurred in US-bound parcel volumes after the country scrapped its duty exemption in 2025. However, volumes subsequently recovered as shippers adjusted to the new import taxes.

The latest changes come as the EU introduces an additional €2 handling fee on e-commerce imports from Nov 1, on top of applicable customs duties and value-added tax (VAT).

The EU had earlier removed its €150 customs duty exemption in July and introduced a temporary €3 duty on low-value imports.

Under the DDP framework, customs duties, taxes and handling fees are calculated before dispatch, rather than collected from recipients upon delivery.

SingPost has also integrated cross-border technology provider Zonos into its ezy2ship platform to automate duty calculations and electronic customs declarations.

The upgraded platform will guide senders in providing product identifiers, descriptions and customs classification codes, without requiring senders to upload product catalogues in advance.

Businesses using SingPost’s Speedpost Saver and SpeedPost Priority (EU) service will benefit from automated system-to-system data verification and retrospective billing.

SingPost chief operating officer Neo Su Yin said the changes would help Singapore businesses and retail senders navigate evolving European regulations while providing greater cost transparency.

The new arrangements cover 16 destinations, including France, Germany, Italy and Spain.

Existing shipping arrangements will remain unchanged for the remaining 11 EU member states until their postal operators are ready.

Personal gifts valued at €45 or less will continue to be exempt from customs duties and VAT in the participating destinations.

The postal and logistics player has faced several operational challenges in recent years, including declining mail volumes and lower profits.

In its FY2025 financial results, SingPost recorded a net profit of S$41.2 million for the second half ended March 31, down 81.5% from S$222.5 million in the year-ago period. Its share price has also fallen close to 30% year to date.

SingPost attributed the decline to a “challenging” operating environment for its logistics and letters business, particularly in international e-commerce delivery.

It will announce its H1 FY2026 financial results on Nov 6. THE BUSINESS TIMES