EU tax on small parcels from China halves imports

The European Union's new tax on low-value parcels from China is dramatically reshaping e-commerce flows, with imports reportedly falling by 30-40% since its implementation on July 1. Previously, goods ordered from platforms like Shein, Temu, and AliExpress, often costing just a few euros, were exempt from customs duties.

Now, parcels valued up to €150 are subject to a fixed €3 duty per product category. This change has led to a sharp decline in sales volumes for major Chinese platforms. French customs data indicates a 30-40% drop in imported small parcels. Temu saw sales plunge by 50% and AliExpress by 37% between June and July. Shein experienced a smaller 15% decline, partly due to a new logistics warehouse opening in Poland.

Brussels argues this system unfairly benefited foreign platforms over European retailers who already adhere to similar import rules and duties. The European Commission also cited safety concerns, noting that over 60% of inspected low-cost products failed to meet EU standards in a 2025 study. The new rules are expected to improve customs authorities' ability to identify potentially dangerous items.

This measure is part of a broader reform of the EU's customs system planned for 2028. Additional fees to cover parcel processing costs may be introduced as early as November, signaling further changes to cross-border e-commerce regulations.