ZigZag, the global returns and post-purchase network, has announced a strategic partnership with Trade Duty Refund to deliver an integrated EU Duty Drawback Service for UK retailers selling into the EU. The service combines ZigZag’s market-leading returns technology with Trade Duty Refund’s digital claims capabilities to enable duty recovery on EU customer returns.
This launch comes ahead of major EU customs reforms due later this year, including the abolition of the €150 duty-free threshold and the introduction of a €3 flat customs duty for low-value parcels from 1 July 2026 – changes expected to increase UK-to-EU import costs. ZigZag research found that nearly a quarter (24%) of clothing purchases were returned in 2025. As duties rise on every good imported, retailers will need robust mechanisms to recover costs on items that come back.
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. By combining ZigZag’s returns expertise with Trade Duty Refund’s digital claims engine, we’re delivering the first fully integrated solution in the market, designed for modern ecommerce.
– Matthew Jacques, Chief Operating Officer, ZigZag
Why This Matters for Retailers
With EU duty exposure set to increase significantly due to upcoming regulatory changes, the new service enables retailers to:
- Recover stranded import duties on returned goods
- Strengthen margins in a high-return environment
- Ensure audit-ready compliance through automated evidence capture
- Reduce operational complexity with a unified, technology-driven workflow
The operational model spans the full cycle – UK → EU import → DE export → UK return → EU duty reclaim – ensuring retailers receive accurate, timely repayment of duties.
Duty drawback is becoming mission-critical for merchants trading into the EU. Our technology ensures retailers can submit complete, compliant claims at scale, with returned items evidence generated and structured by ZigZag.
– Jocelyn Montpert, CEO at Trade Duty Refund
An Easy Way to Claim
ZigZag provides a localised EU returns and post-purchase experience, including first-mile consumer shipping options and full returns management. From its German returns hub, ZigZag captures the necessary data to claim back duty on items returned over the EU border. This includes MRNs, exit confirmations, return scans, and item-level identifiers. Together with Trade Duty Refund, ZigZag performs item-level matching between EU import and export events and assembles all evidence required to support customs repayment claims.
Trade Duty Refund provides the digital claims infrastructure, transforming ZigZag’s structured evidence into customs-ready duty drawback submissions. Trade Duty Refund ensures claims meet all EU repayment/remission standards and manages the entire digital filing process with the relevant EU customs authorities.
Together, ZigZag and Trade Duty Refund automate claim eligibility checks, assemble complete evidence packs, and manage filings through to refund approval – giving retailers an intuitivecross-border duty recovery solution.
