EU Introduces €3 Customs Charge on Small Parcels to Curb Cheap Chinese Imports from Temu and Shein

Brussels, Belgium – The European Commission has introduced a €3 customs tax on small parcels in an attempt to curb cheap Chinese imports, as it seeks to prevent the "desertification" of Europe's high streets and protect local retailers from the "avalanche" of low-cost goods shipped by platforms such as Temu and Shein.

Consumers have been able to buy up to €150 (£129) worth of goods, including fast fashion, cosmetics, and toys, without any customs charges as part of a "de minimis" exemption – a tariff break meaning "too small to matter." From Wednesday, small parcels under that value will be subject to the new €3 customs charge.

Officials are hoping the end of de minimis will slow the rapid rise in imports from China. They said on Monday the number of low-value parcels coming into the bloc had more than quadrupled, from 1.3 billion in 2022 to 5.9 billion in 2025. About 90% of the parcels are coming from China, with competition from online platforms hitting European retailers hard.

'An Avalanche of Cheap Imports'

Online shopping had "contributed to the decline of traditional retail and the desertification of cities, affecting local jobs and community life," a senior official said on Monday.

Last year, civil society consumer groups said EU cities and towns were facing "an avalanche of cheap imports shipped by Temu, Shein, and other third-country e-commerce platforms," which were threatening to devastate the European economy and forcing businesses to close.

The EU justice commissioner, Michael McGrath, also expressed "shock" at the dangers of some of the items entering the EU through the de minimis route.

Safety Concerns: Cosmetics, Toys, and Food Supplements

EU research disclosed on Monday showed that 60% of online products imported from outside the bloc were not compliant with EU law, potentially endangering consumers.

Cosmetics and toys raised the most concerns about safety, with 65% of imports in both categories failing EU standards. Online shoppers opting for non-EU food supplements were also endangering themselves, with 63% of those products failing strict health and public safety tests.

Professional personal protective equipment ranging from hard hats to reinforced shoes from outside the bloc were also a high-risk purchase, with 60% not compliant with EU law.

Last month, EU regulators fined Temu €200 million for failing to stop the sale of illegal and dangerous products.

Leveling the Playing Field for European Retailers

EU officials hope the €3 tax will make some consumers think twice, especially when buying very low-value items. They also believe the removal of the threshold for de minimis duty-free parcels will have a deterrent effect for non-EU retailers, as they will be forced into making sometimes-complicated customs declarations for all packages.

But the main hope is to reintroduce a level playing field for Europe's small businesses and retailers, who have struggled to compete with the rock-bottom prices offered by Chinese platforms.

European retailers have long complained that the de minimis exemption gave Chinese platforms an unfair advantage, allowing them to undercut local businesses on price without having to comply with the same customs and safety regulations.

Shein's Response: Restructuring and New Distribution Hubs

Shein is already looking at restructuring its business model. It has opened pop-up stores in Hungary and last year tried to open its first permanent store in Paris, which closed after a backlash. In December, it opened a massive distribution centre in Poland which may allow it to circumvent the tax.

The Polish distribution centre could enable Shein to consolidate shipments and potentially avoid the new customs charge by importing goods in bulk before distributing them within the EU. EU officials are monitoring the situation closely.

UK Follows Suit with Similar Measures

In the UK, the Treasury said last week it would start charging import duties on small parcels worth less than £135 from October 2028, earlier than an original date of March 2029 but still years later than British retailers had hoped.

British retailers have been pressing for the removal of the de minimis exemption for years, arguing that it allows Chinese platforms to flood the UK market with cheap goods without paying their fair share of taxes and duties.

What's Next for the EU's E-Commerce Crackdown

The introduction of the €3 customs charge is part of a broader EU effort to regulate online platforms and protect European consumers and businesses. The commission has also been working on new rules for product safety, digital services, and fair competition.

However, the effectiveness of the new charge remains to be seen. Platforms like Temu and Shein may simply absorb the cost or find new ways to circumvent the tax. EU officials acknowledge that the measure is not a silver bullet but hope it will at least slow the growth of cheap imports and encourage consumers to think about the safety and sustainability of their purchases.

As one official put it: "This is about protecting European consumers, European jobs, and European high streets. We cannot stand by while our cities are hollowed out by an avalanche of unsafe, cheap imports."