EU Targets Low-Value Imports with New Customs Plan

Ministers push for earlier duties on Chinese e-commerce parcels

European finance ministers have agreed to accelerate the introduction of customs duties on low-value parcels entering the EU, aiming to curb the influx of cheap goods from Chinese platforms such as Shein and Temu. The decision, reached during a meeting in Brussels, sets the stage for negotiations with the European Parliament, which must also approve the measure. Originally planned for 2028, the removal of the “de minimis” exemption for parcels under €150 is now expected in early 2026. A simplified temporary customs fee would replace the current waiver, according to Trade Commissioner Maros Sefcovic.

Growing Pressure from Retailers and Member States

The move responds to growing concern over unfair competition faced by European retailers, who argue that the exemption distorts the market. Platforms like Shein, Temu, AliExpress, and Amazon Haul benefit from shipping low-cost goods directly from Chinese factories to consumers, bypassing customs duties. Retail associations in Sweden and Germany welcomed the decision, calling it a step toward fairer competition. Zalando and Italy’s Confindustria Moda also voiced support, emphasizing the need to protect domestic industries.

Denmark’s economy minister stated that ending the exemption would close long-standing loopholes. The volume of low-value parcels arriving in the EU doubled last year to 4.6 billion, with over 90% originating from China. EU lawmaker Dirk Gotink noted that parcel volumes have already exceeded last year’s totals, with peak shopping periods still ahead. The urgency is compounded by the U.S. scrapping its own de minimis policy, raising concerns about increased diversion of Chinese imports to Europe.

National Fees and Market Fragmentation

Several EU countries have begun introducing national handling fees to address the issue independently. Romania has proposed a 25 lei (€5.73) fee, while Italy plans a similar tax to support its fashion sector. The European Commission has suggested a €2 fee, though its timing and effectiveness remain uncertain. Retailers warn that a patchwork of national charges could undermine the integrity of the EU single market.

EuroCommerce, representing European retailers and wholesalers, cautioned against fragmented approaches. Poste Italiane’s CEO remarked that minor fees may not significantly impact consumer behavior or platform popularity. French retail leader Alexandre Bompard criticized the €2 proposal as insufficient, calling it “a joke” in July. The debate highlights the challenge of balancing regulatory action with practical enforcement across diverse markets.

Impact on Chinese Platforms and Future Outlook

Shein declined to comment on the EU’s decision, while Temu, AliExpress, and Amazon did not respond to inquiries. Legal proceedings against Shein in France over controversial product listings have added to scrutiny. The proposed changes could reshape the competitive landscape for cross-border e-commerce, particularly for platforms reliant on low-cost shipping models. EU officials aim to finalize the legislation in coordination with Parliament to ensure timely implementation.