EU Ends Low-Value Parcel Tax Break to Counter Chinese Import Surge

EU member states on Thursday voted to eliminate the duty-free exemption for parcels under €150 ($174) from platforms like Temu and Shein, aiming to curb the influx of low-cost Chinese goods.

The current rule allows direct-to-consumer imports below €150 to enter the 27-nation bloc tax-free, largely via China-based retailers. In 2024, 4.6 billion such parcels arrived—over 145 per second—with 91% from China. Volumes are projected to grow.

France and the European Commission push for the exemption’s removal by early 2026, not 2028. An EU official confirmed work on a “simple, temporary solution” for swift rollout.

European retailers argue they face unfair competition from AliExpress, Shein, and Temu, which often bypass strict EU product safety and compliance rules.

“Today’s political agreement signals Europe’s commitment to fair competition and protecting its businesses,” said EU Trade Commissioner Maroš Šefčovič. “We must safeguard our borders and ensure a level playing field.”

The decision aligns with broader EU efforts to boost competitiveness by reducing bureaucracy for local firms.

France Calls It a ‘Major Victory’
France, which received 800 million low-value parcels last year, led the charge. Finance Minister Roland Lescure hailed the deal: “Paris’s push has paid off. This is a critical step to shield consumers and the single market from unsafe, non-compliant goods.”

“We’ve advanced EU economic sovereignty,” he told AFP.

In May, the Commission proposed a €2 handling fee per small parcel, slated for late 2026—though the amount remains under negotiation. Impatient, Romania has already introduced its own €5 fee.

(AFP)