EU Fast-Tracks Customs Duties on Chinese E-commerce

The EU plans to accelerate the imposition of customs duties on low-value parcels, targeting cheap Chinese e-commerce imports. A proposal aims to remove the duty exemption earlier than 2028. This action affects e-commerce giants while addressing the growing concern of unfair competition against European retailers, pressured by increased parcel volumes from China.

The European Union (EU) is poised to expedite customs duties on low-value parcels, targeting the influx of cheap Chinese e-commerce imports. EU Trade Commissioner Maros Sefcovic outlined the plan to accelerate the timeline, removing the duty exemption by the first quarter of 2026—two years ahead of the previously scheduled abolition in 2028.

This initiative primarily affects major online platforms such as Shein, Temu, AliExpress, and Amazon Haul, which deliver products directly from Chinese factories at significantly reduced prices. European retailers have long emphasized the urgency of addressing this competitive imbalance. Sefcovic emphasized the need for immediate action in a letter to EU finance ministers.

The European Commission proposed ending the duty exemption, initially set for 2028. However, with parcel volumes doubling in 2023 and over 90% originating from China, the move has become more pressing. EU lawmakers and national governments are contemplating various national fees to manage the situation, but concerns remain regarding the potential market disruption caused by disparate fees.

(With inputs from agencies.)