The European Union has reached a landmark agreement to abolish its duty exemption on low-value parcels, in a decisive move aimed at curbing the surge of inexpensive imports from Chinese e-commerce platforms such as Shein, Temu, and AliExpress.
Under current EU rules, packages valued below €150 ($174) that are shipped directly to consumers within the 27-member bloc are exempt from customs duties.
However, this loophole has fueled a massive inflow of cheap goods — with 4.6 billion small parcels entering the EU in 2023 alone, or roughly 145 every second, of which 91 percent originated from China.
EU officials say the existing exemption has distorted competition, disadvantaged European retailers, and weakened border controls.
Member states, including France, have pushed for the removal of the duty exemption as early as 2025, instead of the previously scheduled 2028 timeline.
According to an EU official, governments are now working on “a simple, temporary mechanism” to bring forward implementation “as soon as possible.”
“Reaching a political agreement sends a strong signal that Europe is serious about fair competition and about defending the interests of its businesses,” said EU Trade Commissioner Maroš Šefčovič. “Europe must be able to protect its borders effectively and uphold the principles of fair trade.”
European retailers have long argued that Chinese-founded online marketplaces often exploit the tax loophole while sidestepping the bloc’s strict consumer safety and product standards.
French Finance Minister Roland Lescure hailed the decision as a “major victory” for fair trade and consumer protection.
“This is a crucial step toward protecting European consumers and our internal market,” Lescure told AFP. “It will help prevent unsafe or non-compliant products from flooding the EU, and marks real progress for Europe’s economic sovereignty.”
The decision forms part of a broader EU effort to enhance competitiveness and reduce bureaucratic hurdles for domestic businesses.
In addition to scrapping the duty exemption, the European Commission has proposed introducing a €2 handling fee for small parcels, though member states have yet to finalize the amount. The measure could take effect by late 2026.
Meanwhile, some countries are moving ahead independently — including Romania, which has already implemented a €5 fee on low-value imports.
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