Temu and Shein shipments in the EU will be subject to customs duties
European Union finance ministers have agreed to abolish the €150 duty-free threshold, which has allowed low-value parcels to enter the EU market without paying customs duties. The decision is a long-term measure aimed at improving the competitive position of EU businesses and curbing undervalued imports.
The change means that all goods entering the EU will be subject to customs duties, in line with VAT rules for imported products. The move will mostly affect fast-growing e-commerce players such as Temu and Shein, whose business model is based on bulk, low-value shipments.
According to the EU justification, up to 65% of small packages are undervalued to avoid customs duties. This not only causes market distortions, but also poses environmental risks, as the division into smaller packages increases the number and burden of shipments. According to Commission data, 91% of e-commerce shipments under €150 in 2024 came from China.
Member states will develop a temporary customs solution by 2026, and the final system will be aligned with the operation of the EU Customs Data Centre, which will be launched in 2028.
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