Key facts
- The EU has eliminated the tax exemption for low-value parcels, introducing a €3 customs duty per product category.
- This change aims to protect European retailers from unfair competition and address safety concerns.
- The number of low-value parcels entering the EU has quadrupled, with 90% coming from China.
- Online marketplaces are now legally responsible for product safety.
- Previously, goods under €150 could be imported tax-free.
The European Union has implemented new regulations eliminating 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 billions 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, including 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. Online marketplaces are now legally responsible for product safety, not just consumers.