Europe will tax cheap packages from Shein and Temu

The European Union will tax cheap goods entering the bloc, a measure that primarily targets Chinese retailers like AliExpress, Shein, and Temu.

Member states have agreed that the bloc will apply a fixed customs duty of €3 ($3.5) on small parcels worth less than €150 ($176) from July 1st next year. The fee will be charged per item in a package.

Currently, cheap packages shipped to the EU can enter duty free, which the bloc said leads to unfair competition to European sellers, health and safety risks for consumers, high levels of fraud, and environmental concerns.

The European Commission, the executive branch of the EU, welcomed the decision.

“With e-commerce expanding rapidly, the world is changing fast – and we need the right tools to keep pace,” EU Trade Commissioner Maroš Šefčovič said.

“That is why the decision on customs duties for small parcels coming into the EU is so important to ensuring fair competition at our borders in today’s e-commerce era,” he said in a statement.

The decision is a temporary measure until the permanent arrangement, reached in November, will come into effect. The sense of urgency follows a similar decision by the United States earlier this year, which scrapped duty free entry for goods with less than $800.

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Washington’s move raised concerns that cheap Chinese products would be diverted to Europe instead.

The number of low-value e-commerce parcels entering the EU doubled last year to 4.6 billion, with more than 90% coming from China. By November this year, arrivals had already surpassed the 2024 total, even before Black Friday and Christmas shopping peaks.

The new duty will affect online platforms that send products from Chinese factories directly to shippers such as AliExpress, Shein, and Temu. Cybernews has contacted all three for comment.

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