After prolonged debate across the continent, European finance ministers reached a landmark agreement to end the duty-free exemption on low-value parcels from Chinese online retailers such as Shein and Temu, starting in 2026.
The move, which must now pass through the European Parliament, accelerates regulation of what officials cite as a flood of packages overwhelming customs and threatening regional industries.
For years, the EU maintained a €150 threshold that allowed billions of shipments from China to enter the single market without customs duty.
Retailers routinely took advantage of the exemption, but drastic increases in parcel volume strained controls and raised questions about fairness to local businesses.
What Prompted the EU to Crack Down on Duty-Free Imports?
Customs authorities have grown ever more alarmed as shipments from Chinese e-commerce platforms surged exponentially, with more than 4.6 billion parcels arriving last year primarily from Shein, Temu, and similar platforms.
Officials argued that existing regulations made it difficult to inspect goods for safety and compliance, thereby posing serious risks to European consumers.
These parcels often bypassed rigorous checks that domestic producers must face, creating a double standard that many deemed unsustainable.
The move comes after multiple nations independently added fees to small parcels to curb what they see as unfair competition and regulatory gaps.
EU ministers say they hope not only to stem the abrupt rise in unregulated imports but also to create a more consistent environment for European companies.
The decision to accelerate the phase-out of the duty-free threshold from 2028 to 2026 reflects concerns voiced by member states and industry advocates who believe the situation demanded urgent reform.
Did you know?
In 2024 alone, more than 4.6 billion low-value parcels entered the EU, and the vast majority originated from China.
How Will These Changes Affect Shein and Temu?
Both Shein and Temu have benefited immensely from duty-free access to European customers, relying on quick, low-cost shipping of fashion and household items.
With customs fees set to be introduced, these platforms will need to adjust their pricing strategies and supply chains to stay competitive.
The removal of the €150 threshold means that every parcel, regardless of value, will be subject to customs scrutiny and potential duties, which could increase delivery times and costs for consumers.
Neither Shein nor Temu provided immediate comment regarding the EU’s latest decision. Industry analysts predict that the move will force Chinese retailers to reconsider Europe’s role in their global expansion plans.
While some may absorb costs or seek shipping alternatives, others could shift focus to less restrictive markets.
Why Are European Retailers Pushing for Faster Reform?
Retailers across Europe have long called for swift action on low-value parcel imports. E-commerce giants in the region, such as Zalando, claimed that the duty-free regime placed them at a stark disadvantage compared to fast-growing Chinese competitors.
Domestic firms must navigate a web of regulations, labor costs, and tax obligations, while foreign sellers can undercut prices almost effortlessly.
The issue has drawn support from national governments hoping to safeguard local industries and maintain standards.
French Finance Minister Roland Lescure described the measure as crucial for protecting consumers and curbing the entry of potentially unsafe or non-compliant goods.
As several countries, including Romania and Italy, have introduced their own parcel fees, an EU-wide solution was seen as necessary for consistent enforcement.
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What Do Consumers and Officials Say About the Move?
Public opinion on the crackdown remains divided. Some consumers fear rising prices and reduced access to affordable products, especially in fashion and electronics.
However, officials stress that tighter customs rules are essential to prevent unsafe products and ensure high regulatory standards.
Customs officials have admitted that the flood of parcels has made comprehensive inspection nearly impossible.
Dirk Gotink, chief negotiator in the European Parliament, noted that this year’s parcel volumes already exceeded totals for all of 2024, indicating how quickly the situation is evolving, especially ahead of peak shopping events.
How Could Global Trade Trends Be Influenced by This Decision?
The EU’s campaign marks a significant shift in global e-commerce dynamics. By tightening controls and fees, it sets a precedent that other regions may follow, especially as the U.S. earlier in 2025 eliminated its $800 de minimis threshold for Chinese goods.
The increased scrutiny could prompt Chinese retailers to explore new international strategies and redirect efforts to emerging markets.
European officials anticipate a period of adjustment for importers, exporters, and consumers alike.
As the measure moves toward parliamentary approval, industry observers expect it to reshape trade patterns, shopping behavior, and cross-border supply chains across Europe.
Many predict that additional reforms or similar crackdowns could follow in other regions.
Final approval and effective implementation in 2026 will be critical for member states, online platforms, and global retailers seeking to remain competitive in a rapidly changing market.
As new customs rules approach, the European Commission will closely monitor outcomes, aiming to balance consumer interests with demands for transparency and safe commerce.
The accelerated action signals Europe’s willingness to adapt rapidly to market changes and protect its internal cohesion.
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