EU finance ministers have agreed to impose a €3 duty on every small parcel imported into the 27-nation bloc starting 1 July next year, a measure aimed at stemming a flood of ultra-cheap e-commerce shipments from platforms such as Shein and Temu.
The flat levy follows the bloc’s move last month to scrap a duty exemption for direct-to-consumer packages valued at less than €150. An EU spokesperson said the €3 charge will be temporary and will remain in place until member states settle on a permanent approach to taxing the fast-growing stream of low-value imports.
- Advertisement -
The scale of the surge has become a political and economic flashpoint across Europe. The EU counted 4.6 billion such small parcels entering the bloc last year—more than 145 every second—with 91% originating in China. Brussels expects those numbers to rise as cross-border e-commerce accelerates, intensifying pressure on European retailers who argue they face an uneven playing field.
France has pushed the issue up the European agenda, citing roughly 800 million small parcels shipped to the country in 2023 and strong domestic calls for action. French Finance Minister Roland Lescure hailed the agreement as “a major victory for the European Union,” adding: “Europe is taking concrete steps to protect its single market, its consumers and its sovereignty.”
The duty is part of a broader EU effort to bolster competitiveness by easing burdens on compliant businesses and tightening rules where officials see distortions. The Commission has framed the measures as both a consumer protection step—ensuring products meet EU standards—and a market-fairness initiative intended to reduce the advantage of goods sold at rock-bottom prices via overseas platforms and shipped directly to individual buyers.
Alongside ending the under-€150 duty exemption, the European Commission in May proposed a separate small-package handling fee set at €2 to cover processing costs. Member states have yet to agree on the final level of that fee, and they are working toward applying it from late 2026. The proposed handling charge would be distinct from the newly agreed €3 duty and would require formal sign-off by national governments.
While implementation details will be finalized in the coming months, the decision locks in a near-term timeline for change. From next July, every small parcel entering the EU would incur the €3 charge, with the duty designed to be simple to administer while a permanent framework is developed. The European Commission and national authorities are expected to coordinate on customs and collection procedures ahead of the start date.
The new levy underscores a wider recalibration of EU trade and consumer policy for the digital era. As volumes climb and supply chains digitize, officials are seeking mechanisms that can keep pace with high-frequency, low-value shipments without overwhelming customs systems or disadvantaging trusted traders. The Commission has argued that a straightforward, fixed duty can act as a bridge to more comprehensive reforms.
For now, the message from Brussels is that the bloc intends to curb the tide of cheap, lightly taxed parcels while preserving consumer access to global marketplaces. The coming negotiations over a permanent solution—and the separate handling fee still under discussion—will determine how far Europe goes in reshaping the economics of low-cost e-commerce at its borders.
By Abdiwahab Ahmed
Axadle Times international–Monitoring.
