Shoppers who frequently purchase items from international platforms like Temu, Shein, or AliExpress may soon notice an increase in costs. Beginning Wednesday, 1 July, the European Union has implemented a new €3 customs duty on low-value parcels entering the bloc from non-EU countries. This change arrives after a year that saw approximately 4.6 billion small parcels, valued under €150, enter the European Union. These shipments arrived at a rate of more than 145 parcels per second, with 91 percent originating from China, all previously exempt from customs duties.
This duty-free status existed because shipments valued below €150 were exempt, a system that allowed consumers to access low-priced items such as clothing, gadgets, or household accessories. However, the EU views this as a point of unfair competition for domestic retailers and an environmental concern, as the low pricing encourages unnecessary consumption. To restore balance, every low-value shipment will now face a fixed €3 customs duty.
The calculation of this duty is based on the product categories within a parcel rather than the parcel itself. For instance, an order containing three identical T-shirts constitutes one product category, resulting in a single €3 charge. Conversely, a package holding a T-shirt, shoes, and shampoo represents three different categories, triggering a total duty of €9. While technically the tax falls on sellers and retailers, they may choose to pass these costs to the consumer by raising product prices.
Many Chinese sellers find this shift challenging, as some of their core products are priced below €3, forcing them to either absorb the tax to remain competitive or potentially change their shipping models. Some companies are already pivoting by shipping in bulk to EU-based warehouses, which effectively turns final deliveries into domestic shipments and avoids the new customs duty. While this €3 charge may not eliminate the price gap between foreign and domestic goods immediately, it is designed to mitigate some competitive disadvantages for European shops.
National customs authorities will manage the collection of these funds, which are intended to cover the administrative and logistical costs of processing these massive volumes of imports. Based on previous annual figures of 4.6 billion parcels, authorities could potentially collect approximately €13.8 billion annually, with the final total potentially being higher due to shipments containing multiple product categories. This tax structure is considered temporary, as the EU plans to launch a more precise customs system with a revised tariff structure beginning in 2028.
