© Insider Narrative. All Rights Reserved.
E-commerce

EU Targets Cheap Chinese E-Commerce With New Parcel Duty

This post was originally published on this site.

image

European Union finance ministers have agreed to impose a temporary  €3 (MX$63.46) customs duty on low-value parcels entering the bloc. The move is part of an accelerated effort to curb cheap Chinese e-commerce imports from retailers such as Shein and Temu.

The duty will take effect on July 1, 2026, and remain in place until a permanent solution is implemented to eliminate the “de minimis” exemption for online purchases valued below €150. The permanent removal of this exemption was originally scheduled for 2028 as part of a broader customs system overhaul, but pressure has grown to act sooner amid concerns that Chinese goods are being “dumped” in Europe.

EU Trade Commissioner Maroš Šefčovič advocated for abolishing the €150 exemption earlier, aiming for 1Q26, moving the timeline forward by two years. In a communication to EU finance ministers, Šefčovič emphasized that immediate action is critical. European businesses, particularly retailers, have long argued that the exemption creates an unfair competitive advantage, as products shipped directly from China avoid customs duties, allowing lower prices that undercut European competitors.

Addressing Unfair Competition and Fraud

The EU Council of 27 governments outlined multiple objectives behind the temporary duty:

  • Unfair Competition: Duty-free parcels disadvantage EU sellers who comply with strict EU standards.

  • Consumer Risk: The measure aims to mitigate potential health and safety hazards.

  • Fraud and Environmental Concerns: It addresses high levels of fraud and the environmental impact of the rapidly growing volume of low-value shipments.
     

Online platforms such as Shein, Temu, AliExpress, and Amazon Haul have leveraged the exemption to ship directly from Chinese factories at lower prices.

The surge in these shipments has doubled the number of low-value e-commerce packages entering the EU, reaching 4.6 billion last year, with over 90% originating from China. Imports are expected to rise further in 2026.

The EU is also considering a separate handling fee, proposed by the European Commission at €2 per parcel, though the implementation timeline remains unclear.