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EU ends tax loophole for low-value imports from SHEIN, Temu, AliExpress

Created at 30 Jun · 8:10 AM1 source↑ Market-relevant
IN SHORT

The European Union has implemented a €3 customs duty on e-commerce imports valued under €150, ending a loophole previously exploited by platforms like SHEIN, Temu, and AliExpress. This move aims to address unfair competition, safety concerns, and environmental impact.

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Key Numbers

€3customs duty on low-value imports
€150previous value threshold for duty exemption
2 billione-commerce packages imported annually under €150
65 percentparcels entering with misdeclared values or unverified safety
0.006 percentparcels checked by customs
12 percentimport duties avoided by firms using the loophole
30 to 50 percenthigher structural costs per garment for European retailers
70 percentproducts not complying with EU safety requirements
32 percentapparel containing illegal concentrations of hazardous substances
3,300 timeslegal European threshold for PFAS in jackets
€9maximum charge for a package with three different item types
93 percente-commerce imports accounted for by the Import One-Stop Shop VAT system
March 26date EU Customs Code Reform removed consumer liability shield
€20typical online order value before new fees
€30typical online order value after new fees
€10price of a summer dress or pair of sunglasses in example
€6total category duties for a dress and sunglasses order
€2planned handling fee
40 percentincrease on a basket of cheap goods
November 2025date for permanent system for low-value imports
2028year EU Customs Data Hub will go live
6 percentpenalties for non-compliance as a percentage of annual import values

Who's Involved

SHEIN
online shopping platform affected by new EU customs duty
Temu
online shopping platform affected by new EU customs duty
AliExpress
online shopping platform affected by new EU customs duty
European Council
body that described the measure as addressing unfair competition and safety concerns
Dirk Gotink
Dutch MEP for the EPP, described the situation as 'tax avoidance on an industrial scale'
Testachats
consumer organisation spokesperson, highlighted low customs checks and product non-compliance
Greenpeace Germany
investigated hazardous substances in apparel from fast fashion
EU ends tax loophole for low-value imports from SHEIN, Temu, AliExpress

↳ Why This Matters

This policy shift significantly impacts the business models of major Chinese e-commerce platforms operating in Europe, potentially leading to higher prices for consumers and forcing restructuring of supply chains. It also aims to level the playing field for European retailers and enhance product safety standards within the EU market.

Key facts

  • A €3 customs duty on e-commerce imports valued under €150 has taken effect in the EU.
  • The 'de minimis' loophole, exempting shipments under €150 from duties, has been closed.
  • The new measure aims to create a fairer competitive environment for European retailers and ensure product safety.
  • Digital marketplaces are now legally considered 'deemed importers' and are liable for product safety regulations.
  • Consumers may experience increased prices and longer delivery times for goods from non-EU sellers.

The European Union has implemented a new €3 customs duty on low-value e-commerce imports, effectively ending a long-standing loophole that allowed goods under €150 to enter the bloc duty-free. This measure, which came into effect on July 1, targets online platforms such as SHEIN, Temu, and AliExpress, aiming to address concerns over unfair competition for European retailers, product safety, fraud, and the environmental impact of high-volume imports.

For years, companies utilized the 'de minimis' loophole to ship directly from China, avoiding up to 12% in import duties and undercutting European businesses that face significantly higher structural costs. The unprecedented volume of these low-value parcels has overwhelmed customs infrastructure, with estimates suggesting only a tiny fraction are inspected, leading to the widespread entry of non-compliant and potentially unsafe products. Investigations have found high levels of hazardous substances in fast fashion items and safety risks in toys.

Under new reforms, digital marketplaces are now legally classified as 'deemed importers,' making them directly liable for EU product safety laws. This shift places responsibility for safety certifications and chemical testing on the platforms, with potential penalties including financial sanctions or market bans for non-compliance. While consumers will likely face higher prices and potentially longer delivery times, the changes are intended to ensure products entering the EU meet the same safety and environmental standards as domestically produced goods.

The new duty is a temporary measure until a permanent system for low-value imports is established in November 2025, with a comprehensive EU Customs Data Hub set to go live in 2028, removing the €150 threshold entirely.

Frequently asked questions

The EU has introduced a flat €3 customs duty on e-commerce imports valued under €150.

Online shopping platforms such as SHEIN, Temu, and AliExpress are directly affected by this new duty.

The EU aims to address unfair competition for European retailers, improve product safety, combat fraud, and reduce the environmental impact of cheap imports.

Consumers may face higher prices for imported goods and potentially longer waiting times for delivery, but will benefit from stronger product safety protections.

The 'de minimis' loophole was a customs policy allowing low-value shipments (under €150 in the EU) to enter free of customs duties, which companies exploited to avoid taxes and lower costs.

What Happens Next

01A permanent system for low-value imports is expected to be agreed upon by November 2025.
02The EU Customs Data Hub is scheduled to go live in 2028, removing the €150 threshold entirely.

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Cadence

How It Developed

The EU implemented a €3 customs duty on e-commerce imports valued under €150.
Previously, goods under €150 were exempt from customs duties.
The measure aims to combat unfair competition, unsafe products, fraud, and environmental impact.
Companies like SHEIN, Temu, and AliExpress previously used the 'de minimis' loophole to avoid duties.
The EU Customs Code Reform reclassifies digital marketplaces as 'deemed importers', making them liable for product safety.
Consumers will face higher prices and potentially longer waiting times for imports.
Platforms may need to absorb costs or invest in EU-based warehouses.

Sources

T1
EU ends tax loophole exploited by SHEIN, Temu, and AliexpressEuronews

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