EU Introduces €3 Customs Charge on Small Parcels
The European Commission has announced a new €3 customs charge on small parcels valued under €150, ending the long-standing 'de minimis' exemption that allowed duty-free imports of low-value goods. The move aims to curb the surge of cheap Chinese imports, which have quadrupled from 1.3 billion parcels in 2022 to 5.9 billion in 2025, with 90% originating from China. Officials hope this will prevent the 'desertification' of Europe's high streets, as online platforms like Temu and Shein have undercut local retailers.
Impact on EU Retailers and Consumers
The 'de minimis' exemption, meaning 'too small to matter,' had enabled consumers to buy up to €150 worth of goods—including fast fashion, cosmetics, and toys—without customs duties. However, this led to an 'avalanche of cheap imports,' according to consumer groups, threatening European businesses and jobs. EU research shows 60% of online imports from outside the bloc violate EU law, with cosmetics and toys failing safety standards in 65% of cases, and food supplements failing 63% of health tests. Professional protective equipment, such as hard hats, also had a 60% non-compliance rate.
Regulatory Actions and Industry Response
Last month, EU regulators fined Temu €200 million for failing to prevent the sale of illegal and dangerous products. EU Justice Commissioner Michael McGrath expressed 'shock' at the dangers of items entering via the de minimis route. In response, Shein is restructuring its business model, opening pop-up stores in Hungary and a distribution center in Poland, which may allow it to circumvent the new tax. The €3 charge also applies to Northern Ireland under Brexit arrangements, with proceeds going to the UK Treasury.
Future UK Measures
The UK Treasury plans to introduce import duties on small parcels worth under £135 from October 2028, earlier than the original March 2029 date, but still later than British retailers had hoped. Temu and Shein have been approached for comment.
