EU Cracks Down on Cheap Chinese Parcels Flooding European Market
EU economy ministers have agreed to tax small parcels coming from China, putting e-commerce platforms like Shein and Temu under pressure.
On Thursday, the EU 27 economy ministers decided to end the €150 customs duty exemption that currently applies to parcels from outside the EU.
This move will affect Chinese online stores, including Shein and Temu, which send many small parcels to Europe. In France, Shein is also facing legal action over selling child-like sex dolls.
“This is a defining moment,” said European Trade Commissioner Maroš Šefčovič, adding that the decision “shows Europe is serious about fair competition and protecting its businesses.”
EU Economy Commissioner Valdis Dombrovskis said that 4.6 billion parcels entered the EU in 2024, with 91% coming from China, and the number is rising fast.
The plan to remove the exemption is part of a bigger update of EU customs rules, which may take some time.
Acting Quickly as Chinese Goods Flood Europe
The 27 EU countries will meet again in December to agree on a temporary system to put these rules in place. Šefčovič said the EU could start as early as 2026.
“Ending the exemption will close loopholes that have been used to avoid customs duties,” a European diplomat said.
After the agreement, customs duties and value-added tax will be applied from the first euro on all goods entering the EU.
This move could change the situation for Chinese e-commerce platforms that have been aggressively selling in Europe.
A €2 tax on small packages, suggested by the European Commission in July, is already being discussed by the EU countries.
Some EU countries are also taking their own steps. Italy is planning a tax to protect its fashion industry from cheaper Chinese products.
“We support the new tax on small parcels from outside the EU, which is harming our retail sector,” said Italian Economy Minister Giancarlo Giorgetti.
EuroCommerce, representing EU retailers, warned last month that Chinese online orders are growing fast and called for a coordinated EU response.
“A fast and unified EU solution is important, as different national rules could create unfair competition,” said Christel Delberghe, EuroCommerce’s director general.
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