Media365
The European Union on Wednesday ended a decades-old duty-free exemption for low-value imports, introducing a new €3 customs fee on small parcels from outside the bloc in a move that targets the business model of Chinese e-commerce platforms such as Shein, Temu and AliExpress.
The new levy applies to parcels worth up to €150 that previously entered the EU duty-free under the “de minimis” exemption. European policymakers say the measure is designed to curb unfair competition from ultra-cheap imports, protect domestic retailers and strengthen oversight of the billions of parcels entering the bloc each year.
The decision marks the latest setback for Chinese online marketplaces after the United States ended its own de minimis exemption for imports from China in May and expanded the policy to all imports at the end of August.
Why the EU is ending the exemption
The duty-free threshold for low-value imports has existed for decades, with the current €150 limit introduced in 2008. However, EU officials argue that the exemption has become outdated amid the rapid growth of cross-border online shopping.
According to the European Commission, the number of low-value e-commerce parcels entering the bloc surged to about 5.9 billion in 2025 from around 1.4 billion in 2022. Roughly 90 per cent of those shipments originated from China, driven largely by platforms such as Shein and Temu.
The Commission has said the boom in ultra-cheap imports has contributed to the decline of traditional retailers and the “desertification” of Europe’s high streets, with local businesses struggling to compete against products sold at significantly lower prices.
Dirk Gotink, the European Parliament’s lead lawmaker on customs reform, said the exemption had outlived its original purpose.
“In a different trading world this made a lot of sense, but that world doesn’t exist anymore. It’s been turned on its head by e-commerce, especially from China,” Gotink told Reuters.
“The exemption was abused and misused on an industrial scale to create a competitive advantage at the expense of EU businesses,” he added.
How the new fee will work
The €3 customs fee will be charged for each customs classification in a shipment rather than per parcel alone. For example, a package containing different categories of products, such as clothing and toys, could attract multiple charges, while several identical items packed together would incur a single €3 fee.
The measure is intended as a temporary arrangement and will remain in place until July 1, 2028, when the EU’s new Customs Authority is expected to begin operations. At that point, category-specific duties are scheduled to replace the flat fee as part of a broader customs reform.
Consumers could pay more
Industry analysts expect the new charges to increase prices for European consumers as online retailers pass on at least some of the additional costs.
AliExpress, owned by Alibaba Group, said product listings would display a “Price includes duties and VAT” label where applicable. For products shipped from outside the EU, customers will be shown a breakdown of import charges before completing their purchases.
Amazon, which launched its Amazon Haul discount shopping service to compete with Shein and Temu, said 97 per cent of its EU shipments last year were fulfilled from warehouses within the bloc. The company added that import charges would be displayed during checkout for products shipped from outside the EU.
Safety concerns strengthen EU case
Beyond concerns over competition, European regulators have also highlighted growing risks linked to imported products.
Research released by the EU this week found that around 60 per cent of products purchased online from outside the bloc failed to comply with European safety and consumer protection rules.
Cosmetics and toys recorded the highest rates of non-compliance, with 65 per cent of imported products failing to meet EU standards. Food supplements and personal protective equipment also showed high levels of regulatory breaches.
The findings come weeks after EU regulators imposed a €200 million fine on Temu for failing to prevent the sale of illegal and dangerous products on its platform.
By ending the duty-free exemption, Brussels hopes not only to restore fair competition for European retailers but also to strengthen customs oversight and improve consumer protection as cross-border online shopping continues to expand.
With inputs from agencies.
