EU Imposes New Tariff on Low-Value Chinese E-Commerce Imports

The European Union is implementing a 3-euro customs duty on low-value parcels to curb the influx of cheap Chinese goods. This measure, effective from July 1, 2026, targets e-commerce giants like Shein and Temu, aiming to level the playing field for EU retailers and address environmental and safety concerns.

The European Union finance ministers have announced a decision to enforce a 3-euro customs duty on low-value parcels entering the bloc. This is part of an initiative to address the increasing influx of inexpensive Chinese e-commerce products, particularly from platforms like Shein and Temu.

The new duty will be applicable from July 1, 2026, for each item type, and is an interim measure until a long-term solution replaces the current 'de minimis' duties exemption on items priced below 150 euros. This move aims to eliminate unfair competition, mitigate consumer health risks, and address environmental concerns posed by duty-free parcels.

Irish lawmaker Barry Andrews, who initially advocated for a higher levy, asserted the necessity of this measure, emphasizing the need to regulate import volumes from China, which account for over 90% of low-value packages entering the EU. European retailers have largely supported this duty, considering it a step towards fairer market practices.

(With inputs from agencies.)