Etsy has become the first online marketplace to offer Royal Mail's new postal delivery duties paid service for European Union shipments, giving UK sellers a way to comply with customs rules introduced on 1 July that require duties to be collected on most low-value parcels entering the bloc.

The new EU customs regime applies a flat €3 customs duty to most business-to-consumer parcels worth less than €150 arriving from outside the EU's 27 member states. Royal Mail's postal delivery duties paid (PDDP) service calculates and collects the duty when postage is purchased, allowing parcels to clear customs with charges settled before delivery and reducing the risk of customers facing unexpected fees.

The service is now available directly through Etsy's platform for all sellers using Royal Mail to send eligible parcels to participating EU destinations. Sellers purchasing postage through Etsy will have duties calculated automatically, while Royal Mail will charge a £1 handling fee per parcel, reduced to 50p for items sent to Ireland, to cover customs clearance costs.

Roman Sobieri, head of global shipping at Etsy, said: "Cross-border selling is one of the biggest opportunities for Etsy's creative entrepreneurs, and navigating customs changes shouldn't be a barrier." He added that collecting duties through the platform at the point of postage would help UK sellers continue reaching European customers while giving buyers "a seamless experience without unexpected charges at the door".

According to Royal Mail, the service currently covers Austria, Belgium, Cyprus, Denmark, Estonia, Finland, France, Germany, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Spain and Sweden. The postal operator said the scheme is intended to simplify exports for small businesses adapting to the EU's revised import requirements.

Iain Johnson, managing director for international at Royal Mail, said: "We're committed to helping UK businesses continue trading with customers across Europe." He said the service makes it easier for sellers to respond to the latest customs changes by collecting duties upfront, helping to avoid delays and unexpected charges, adding that exporting to the EU "remains a significant opportunity" for British businesses.

The launch builds on a similar partnership between Etsy and Royal Mail introduced for exports to the United States following changes to US import rules last year. That earlier rollout likewise enabled Etsy sellers to prepay import duties through the marketplace, reflecting a broader effort by both companies to simplify cross-border e-commerce as customs requirements become more complex.

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