European finance ministers, meeting in Brussels on Thursday, agreed to scrap a bloc-wide duty exemption on small, cheap parcels entering the EU two years earlier than planned. This move aims to stop the flood of low-cost imports from Chinese platforms like Shein and Temu.
This move was proposed by European Trade Commissioner Maroš Šefčovič, in his letter to finance ministers ahead of the meeting, he pushed to start the charge in as early as first quarter in 2026—two years ahead of scheduled 2028—and to replace it with a "simplified temporary customs fee" that covers administrative costs for customs authorities.
The EU’s current “de minimis” rule exempts parcels worth less than €150($163.50) from customs duties—though VAT may still apply in certain cases—to streamline trade flow for low-value consumer purchases.
Like in the United States, this exemption has been abused by Chinese direct-to-consumer e-commerce platforms such as Shein and Temu, enabling ultra-cheap goods—like clothes and gadgets under €10($10.90)—to reach the continent without paying tariffs or undergoing safety checks.
"European industries, particularly retailers, have repeatedly underlined that this distortion of competition be removed without delay," Sefcovic wrote.
Dutch Finance Minister Eelco Heinen told reporters it’s time to “get a grip” on the flood of cheap Chinese parcels into Europe. Greek Finance Minister Kyriakos Pierrakakis said in a statement his country supports immediately applying tariffs on these packages.
The decision needs to go through the European Parliament for final approval.
In 2023, the European Commission proposed removing the exemption in 2028, when a broader overhaul of the EU’s customs regime is due to take effect. But the rapid flood of Chinese parcels prompted the EU to urgently implement this move.
Last year, the EU received 4.6 billion low-value parcels, with over 91 percent coming from China. This is more than double the 2023 volume and triple that of 2022. This translates to more than 12 million parcels per day, overwhelming customs operations in key hubs like the Netherlands and Belgium.
EU lawmaker Dirk Gotink, chief negotiator on the new customs legislation, said up to now this year, the EU has already received more parcels than in the entire year of 2024, and things will get worse “with Black Friday and Christmas just around the corner.”
The United States has eliminated its “de minimis” threshold, which previously permitted duty-free importation of packages valued under $800. This policy shift has heightened fears among European member states that low-cost Chinese goods, now facing stricter controls in the U.S. market, will increasingly flood the EU instead.
On the other hand, the EU needs to introduce a unified fee for small parcels, especially as member states plan varying charges of their own. For example, Romania has proposed a €5 fixed fee on non-EU small parcels, effective in November, and Italy is working on a tax by the end of the year to protect its fashion industry.
The EU has proposed a €2 ($2.18) fee on packages shipped directly to consumers, while those sent to warehouses would face a reduced rate of €0.50 ($0.55). However, the exact start date remains unclear.