Key facts
- The EU has removed the tax exemption for low-value parcels from e-commerce platforms.
- A €3 customs duty will now be applied per product category within a parcel.
- This aims to protect European retailers from unfair competition.
- The EU cited concerns over untaxed shipments, microplastic pollution, and toxic chemicals in products.
The European Union is implementing new regulations that will eliminate the tax exemption for low-value parcels, making orders from e-commerce platforms like Shein and Temu more expensive for European consumers. Previously, these platforms could ship millions of untaxed individual packages directly from China, creating a significant competitive advantage over local European retailers who are subject to domestic taxes and safety standards.
The new rules introduce a flat-rate customs duty of €3 per product category within a parcel. This means a shopper buying a shirt, sunglasses, and a bag in a single order could face a €9 customs charge, whereas such a bundle previously entered the continent tax-free. The EU's decision stems from the exploitation of the exemption by massive non-EU platforms, leading to billions of untaxed shipments and unfair competition.
Beyond economic competition, the EU also cited health and environmental risks associated with these ultra-cheap imports. These include microplastic pollution from fast fashion, substantial carbon footprints from individual air-freighted deliveries, and frequent regulatory tests revealing toxic levels of heavy metals and chemicals in consumer products.