The European Union has implemented a €3 customs duty on low-value imports under €150 to curb unfair competition from Chinese e-commerce giants like Shein and Temu. The policy addresses a massive surge in parcels, which rose to nearly 6 billion in 2025, and combats safety non-compliance, where over 60% of inspected goods failed EU standards. Platforms are adapting by expanding European warehousing, though costs may be passed to consumers.
EU €3 customs charge
- ▪The European Union intends to introduce an additional handling fee and mandatory reference details for low-value imports starting in November 2026
- ▪The European Union plans to replace the flat €3 rate with category-specific duties starting July 1, 2028, when the new EU Customs Authority begins operations
- ▪The European Union implemented a flat €3 customs duty on low-value e-commerce imports valued under €150 starting July 1, 2026
- ▪The €3 customs duty is applied per product category, meaning a single parcel containing three different classes of items will incur a €9 charge
Chinese e-commerce platform imports
- ▪Approximately 90% of the low-value parcels entering the European Union originate from China, driven by platforms such as Shein, Temu, and AliExpress
- ▪Low-value parcel imports entering the European Union rose from 1.3 billion or 1.4 billion in 2022 to between 5.8 billion and 5.9 billion in 2025
Non-compliant product safety risks
- ▪In May 2026, European Union regulators fined Chinese online retailer Temu €200 million for failing to prevent the sale of illegal and non-compliant products
- ▪European Union inspections in 2025 revealed that over 60% of imported items, including toys, cosmetics, and electronics, failed to comply with EU safety standards
European retail desertification
- ▪The new customs charge will also apply in Northern Ireland under Brexit trading arrangements, with all proceeds directed to the United Kingdom Treasury
- ▪European Union officials state that cheap imports have contributed to the decline of traditional retail, city desertification, and local job losses
Platform business model shifts
- ▪E-commerce platforms are expected to pass on the new customs costs to consumers or pressure suppliers to lower prices to maintain profitability
- ▪Shein has adjusted its business model by expanding its warehouse and distribution center space in Wroclaw, Poland, to step up bulk shipping to the European Union
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