EU Cracks Down on Cheap Chinese Packages: Duty-Free Threshold to End in 2026

The European Union is taking decisive action against the rising tide of low-cost Chinese packages flooding its market, in a move expected to reshape the e-commerce landscape.

At a recent meeting of the EU Council of Finance Ministers (ECOFIN) on November 13, officials agreed to accelerate the introduction of customs duties on low-value shipments from third countries.

The key measure is the elimination of the so-called “de minimis” customs exemption, which currently allows online purchases under €150 to enter the EU duty-free.
Originally scheduled for mid-2028, the EU has now agreed, following a proposal by European Trade Commissioner Maroš Šefčovič, to implement the change in the first quarter of 2026 – two years ahead of schedule.
The decision reflects the urgency of the situation: the number of small parcels arriving in the EU has doubled in recent years, reaching 4.6 billion, with over 90% coming from China.

This move directly targets retail platforms such as Chinese giants Shein and Temu, which have been leveraging the €150 exemption to sell ultra-cheap products, avoiding duties and often bypassing safety checks.

Brussels aims to achieve three main objectives:
1. Restore Fair Competition: Level the playing field for European businesses, which are subject to VAT and customs duties.
2. Protect Revenue: Address the billions in lost revenue for member states due to tax evasion.
3. Ensure Product Safety: Guarantee that imported goods meet EU safety standards.

EU finance ministers have also pledged to implement a simple, temporary solution, which could include a small “handling fee” (studies suggest around €2 per parcel) to cover inspection and compliance costs.
For consumers across Europe, the new rules mean all purchases from third countries – even as small as €1 – will be subject to customs duties.
The final cost of shopping on platforms like Shein and Temu is expected to rise, factoring in duties and possible handling fees.

Through this reform, the EU aims to modernize its customs system for the digital age, ensuring fairer trade while protecting both European consumers and businesses.