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Cheap online shopping from the likes of Shein, Temu and AliExpress will soon be a thing of the past as on Thursday November 13 the EU member states agreed to scrap customs duty exemptions for shipments valued at less than €150 from third countries.

 

This measure aims to curb the influx of small packages arriving, primarily from China, by subjecting them to tariffs regardless of their value.

 

Although the measure won’t fully come into effect until 2028, countries will be allowed to start collecting customs duties as early as the beginning of 2026. In fact, several states have already pushed forward with their own plans. Romania, for example, has imposed a five-euro fee on small parcels.

 

Under current regulations (until the newly approved ones come into force), packages purchased online from a non-EU country are tax-free as long as they remain below the €150 threshold.

 

"Eliminating this threshold means that customs duties will have to be paid from the first euro on all goods entering the EU," explained Danish Finance Minister Stephanie Lose, whose country holds the rotating presidency of the Council of the EU at the moment.

 

Shipments valued at less than €150 to the EU have more than tripled in two years, rising from €1.2 billion in 2022 to €4.6 billion in 2024, with 91% of these originating from China, according to data from the European Commission.

 

The Commission attributes this increase to the "exponential growth" of Chinese online retailers such as Temu and Shein, which have won over millions of consumers in the EU thanks to "pervasive online advertising, low prices and ultra-fast shipping."

 

The massive influx of packages sent directly to consumers makes it difficult for customs authorities to control the millions of daily shipments, increasing the risk of counterfeit products or products that do not comply with European safety standards entering the country, in addition to the environmental impact associated with their transport.

 

At the same time, it distorts competition by favouring online retailers from outside the EU over European manufacturers, who are required to comply with EU regulations and pay customs duties when importing in large quantities.

 

"This change will create a more level playing field between European companies that pay duties on all their exports and non-EU companies that sell low-value goods directly without paying them," the Danish minister stated. She also emphasised that the reform specifically aims to curb the "massive influx" of these types of packages from Asia.

 

Separately, Brussels has proposed a €2 fee for handling each package arriving at EU customs, which could also come into effect in 2026.

 

 

Image: Freepik