EU Introduces Customs Charge on Small Parcels
The European Union has announced plans to impose a €3 customs charge on small parcels valued under €150, ending the 'de minimis' exemption that allowed such goods to enter the bloc without customs duties. This move aims to curb the influx of inexpensive Chinese imports and protect European retailers.
Until now, consumers could purchase goods worth up to €150—including fast fashion, cosmetics, and toys—without incurring customs charges due to the 'de minimis' exemption, a tariff break applied to shipments considered "too small to matter." Starting Wednesday, however, all parcels under this value will be subject to the new customs fee.
Rising Imports and Impact on European Retail
EU officials hope this measure will slow the rapid increase in imports from China, which have surged dramatically in recent years. On Monday, officials revealed that the number of low-value parcels entering the EU is projected to rise from 1.3 billion in 2022 to 5.9 billion by 2025. Approximately 90% of these parcels originate from China, with online platforms such as Shein and Temu intensifying competition and challenging European retailers.
A senior EU official commented on the broader impact of online shopping, stating:
"Online shopping had contributed to the decline of traditional retail and the desertification of cities, affecting local jobs and community life."
Last year, consumer advocacy groups warned that EU cities and towns were facing "an avalanche of cheap imports shipped by Temu, Shein and other third-country e-commerce platforms," which threatened to devastate the European economy.
Concerns Over Product Safety and Compliance
EU Justice Commissioner Michael McGrath has also expressed concerns regarding some products entering the EU under the de minimis exemption. Research published on Monday revealed that 60% of online products imported from outside the EU failed to comply with EU regulations, posing potential risks to consumers.
Cosmetics and toys were among the most problematic categories, with 65% of imports in both sectors not meeting EU safety standards. Additionally, 63% of non-EU food supplements purchased online failed to pass strict health and public safety tests. Professional personal protective equipment, including hard hats and reinforced shoes, also presented high risks, with 60% of such imports not compliant with EU law.
In response to these issues, EU regulators imposed a €200 million (£173 million) fine on Temu last month for failing to prevent the sale of illegal and dangerous products.
Expected Effects of the New Customs Charge
EU officials anticipate that the €3 customs fee will encourage consumers to reconsider purchasing very low-value items from outside the bloc. Removing the €150 threshold for duty-free parcels is also expected to deter non-EU retailers, who will now be required to complete often complex customs declarations for all shipments.
The primary objective of this policy is to restore fair competition for Europe's small businesses and retailers.
Retailers' Responses and Future Outlook
Shein is reportedly evaluating changes to its business model in response to the new regulations. The company has opened pop-up stores in Hungary and attempted to establish its first permanent store in Paris last year, although the latter effort was unsuccessful. In December, Shein launched a large distribution center, which may enable it to circumvent the new customs tax.
In the United Kingdom, the Treasury announced last week that it will begin charging import duties on small parcels valued under £135 starting in October 2028. This date was moved forward from the original plan of March 2029 but remains later than British retailers had hoped.
Both Temu and Shein have been contacted for comment regarding the new EU customs charge.
