EU Advances Customs Fees on Shein and Temu Imports by 2026 to Address Trade Imbalance

  • Elimination of de minimis rule: Packages under 150 euros will face simplified customs fees starting in 2026.

  • Targets e-commerce platforms shipping directly from China, protecting European retailers from price undercutting.

  • Supported by 27 EU countries; European Parliament approval pending, addressing a surge in low-cost imports.

EU de minimis exemption ends sooner: Discover how 2026 customs fees on Shein and Temu imports will level the playing field for European businesses. Stay informed on trade policy changes.

What is the EU De Minimis Exemption and Why Eliminate It Now?

The EU de minimis exemption allows imports valued under 150 euros to enter without customs duties or VAT, enabling platforms like Shein and Temu to offer ultra-cheap products directly from Chinese factories. EU finance ministers decided Thursday to scrap this rule by the first quarter of 2026, accelerating the timeline from 2028 to combat market distortions and protect local industries. This move introduces a simplified temporary customs fee to ensure fair competition.

How Will the New Customs Fees Impact Chinese E-Commerce Sites?

The new rules will require fees on all low-value packages, potentially increasing costs for consumers on sites like Shein, Temu, AliExpress, and Amazon Haul. Trade Commissioner Maros Sefcovic emphasized that European industries have urged immediate action, as the exemption has flooded markets with untaxed goods, harming retailers. According to Commission data, low-value imports from China rose by over 20% in recent years, with more than 400 million parcels arriving annually duty-free. Experts like Luca Sburlati from Italy’s Confindustria Moda argue this is vital for sectors like textiles, where “survival depends on balanced trade.”

Government officials across the EU, including Denmark’s Stephanie Lose, highlighted how the exemption created exploitable loopholes. Business groups such as Sweden’s retail association and Germany’s e-commerce body welcomed the decision as a step toward equity, noting it aligns with broader customs reforms proposed in 2023.

Frequently Asked Questions

What Changes to the EU De Minimis Rule Were Agreed Upon?

EU ministers in Brussels approved ending the 150-euro de minimis exemption by Q1 2026, replacing it with a simplified customs fee on imports. This targets direct-to-consumer shipments from China, aiming to eliminate tax avoidance and support local economies without disrupting the single market.

Will the New EU Customs Fees Affect Shoppers on Shein and Temu?

Yes, starting in 2026, shoppers on platforms like Shein and Temu will likely pay additional fees on packages under 150 euros, making low-cost Chinese imports less attractive. This could raise prices slightly, but officials stress it promotes fair trade; national variations, like Romania’s proposed 25 lei fee, add to the urgency for unified rules.

Key Takeaways

  • Accelerated Timeline: De minimis exemption removal moves from 2028 to 2026, responding to industry pressures for swift action.
  • Business Support: European retailers, including Zalando and EuroCommerce, praise the move to close competitive loopholes exploited by Chinese platforms.
  • Potential Challenges: While fees may start at 2 euros, experts like Poste Italiane’s CEO warn they might not deter shoppers; monitor for EU Parliament approval and trade impacts.

Conclusion

The EU’s decision to end the de minimis exemption by 2026 marks a pivotal shift in tackling cheap Chinese imports via sites like Shein and Temu, fostering fairer competition for European businesses. With Trade Commissioner Maros Sefcovic leading the charge and endorsements from groups like Confindustria Moda, this policy addresses long-standing distortions. As ongoing EU-China trade tensions evolve, stakeholders should prepare for a more balanced market landscape and watch for implementation details.

European Union finance officials reached an agreement on Thursday to accelerate the imposition of customs fees on low-value imported packages, targeting popular Chinese e-commerce platforms such as Shein and Temu. This decision moves the timeline up by two years from previous expectations, aiming to curb the influx of inexpensive goods that have been undercutting local retailers.

The ministers, convening in Brussels, seek to implement the revised tax framework by 2026, pending approval from the European Parliament. The urgency stems from the overwhelming volume of affordable Chinese products entering European markets, which has prompted calls for immediate regulatory action.

Trade Commissioner Maros Sefcovic urged the elimination of the de minimis threshold, which currently exempts online purchases below 150 euros from duties and taxes. He proposed a streamlined temporary customs procedure in its place, effective from early 2026, as part of a comprehensive customs overhaul initially outlined in 2023.

Platforms including Shein, Temu, AliExpress, and Amazon Haul have thrived by shipping apparel, accessories, and electronics directly from manufacturers, bypassing traditional import costs thanks to this exemption. The policy shift intends to restore balance by ensuring these shipments contribute to EU revenues and reduce competitive disadvantages for domestic sellers.

Support from European Industries Builds Momentum

Sefcovic noted in communications to ministers that “European industries, particularly in retail, have consistently demanded the prompt removal of this competitive distortion.” The proposal has garnered widespread approval from policymakers and trade associations throughout the bloc.

Denmark’s Economy Minister Stephanie Lose stated to the press that “terminating the exemption will seal persistent gaps that have been routinely leveraged to evade duties.” Major players like German e-tailer Zalando have lobbied vigorously for such measures, issuing statements calling for expedited reforms.

Associations including Sweden’s retail federation and Germany’s digital commerce group described the ministerial accord as an initial victory in pursuing equitable market conditions. Italy’s fashion industry leader, Confindustria Moda’s Luca Sburlati, asserted that levying duties on sub-150-euro parcels is “crucial for sustaining our textile and apparel industries.”

National Initiatives Highlight Growing Pressures

The push gains traction amid unilateral actions by member states. Romania is advancing a 25 lei fee on small parcels, while Italy’s industry minister announced plans for a pre-year-end tax to safeguard fashion producers.

EuroCommerce, representing retailers and wholesalers, cautioned that fragmented national levies could undermine the EU’s unified market principles. The Commission has floated a modest 2-euro charge, though its rollout remains uncertain.

Skepticism persists regarding the fees’ effectiveness. The CEO of Poste Italiane, which processes vast package volumes, remarked that “markets typically adapt… A fee of one or two euros won’t significantly alter these platforms’ appeal.”

France’s retail federation head and Carrefour executive Alexandre Bompard previously dismissed a 2-euro parcel tax in July as inadequate. This development unfolds against heightened EU-China trade frictions, with entities like Temu facing global regulatory adjustments.

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