The European Commission has introduced a new customs charge of €3 (£2.60) on small parcels ordered from low-cost online retailers such as Temu and Shein, effective from Wednesday, July 1. The measure aims to reverse the 'desertification' of Europe's high streets by curbing the flood of cheap Chinese imports.
End of the De Minimis Exception
Previously, consumers could buy up to €150 (£129) worth of goods—including fast fashion, cosmetics, and toys—without any customs charges under a 'de minimis' exception that disregarded small amounts. The new tax law reform eliminates this loophole for parcels under that value.
In 2025 alone, almost 5.9 billion items were shipped into the EU without paying customs tax, 90% of which came from China—a figure nearly quadruple the number in 2022, according to EU data.
Impact on High Streets and Local Jobs
A senior EU official stated on Monday that online shopping had 'contributed to the decline of traditional retail and the desertification of cities, affecting local jobs and community life.' Civil society consumer groups last year warned that EU cities faced 'an avalanche of cheap imports shipped by Temu, Shein and other third-country e-commerce platforms,' threatening to devastate the European economy and force business closures.
Details of the New Duty
Maros Sefcovic, the European commissioner for trade, said: 'This reform ensures fairness for all businesses operating within the EU market while keeping customs procedures simple for consumers. By introducing a small duty and stronger product traceability, we are closing loopholes that allowed unsafe and non-compliant goods to enter our market too easily. This is a key step in the modernisation of our Customs Union and towards a fully digital, agile and coordinated EU customs system fit for the challenges of our times.'
The duty applies per item type, not per parcel, and is temporary—only set to last two years. From July 2028, a new EU Customs Data Hub will streamline e-commerce import management. EU officials hope the tax will discourage purchases of very low-value items.
Northern Ireland and UK Implications
The new customs charges will also apply in Northern Ireland under Brexit trading arrangements, with all proceeds going to the UK Treasury. In the UK, the Treasury announced it will start charging import duties on small parcels worth less than £135 from October 2028—earlier than the original May 2029 date—but many British retailers have already gone out of business.
Non-Compliant Imports and EU Fines
EU research released Monday found that around 60% of online products imported from outside the bloc were non-compliant with EU law. This was highest for cosmetics and toys, where about 65% failed EU standards, and 63% of non-EU food supplements failed health and safety tests.
Last month, the EU fined Temu—owned by Chinese e-commerce giant PDD Holdings—€200 million (£174.5 million) for failing to stop the sale of dangerous and illegal products.
