EU to tax inbound parcels in challenge to Temu, Shein, AliExpress - Inside Retail Asia

Duty exemptions on low-value imports have been in place for decades. (Source: Reuters/Casey Hall) By Helen Reid and Philip Blenkinsop July 1, 2026 Text Size --> Europe on Wednesday took a first step towards curbing what it calls unfair competition from online retailers such as Shein, Temu and AliExpress by imposing a €3 fee on low-value e-commerce imports from China that previously entered the bloc duty-free. The move is another setback for platforms that used customs exemptions to sell goods at ultra-low prices, fuelling rapid growth and prompting complaints from retailers and policymakers. The US, their biggest market, ended its ‘de minimis’ exemption for imports from China in May and for all imports at the end of August. The fees, which take effect on Wednesday, will be charged for each customs classification in a shipment. A parcel containing three different types of items would incur a total charge of €9, while a parcel containing multiple dresses or multiple toys would be charged €3. Duty exemptions on low-value imports have been in place for decades, with the current threshold of €150 introduced in 2008. But the number of e-commerce parcels entering the European Union under the exemption has surged, reaching 5.8 billion in 2025 from 1.4 billion in 2022. “In a different trading world this made a lot of sense, but that world doesn’t exist anymore. It’s been turned on its head by e-commerce, especially from China,” EU lawmaker Dirk Gotink, who leads the customs reform topic in the European Parliament, said in an interview. “The exemption was abused and misused on an industrial scale to create a competitive advantage at the expense of EU businesses.” E-commerce air cargo volumes set to drop Derek Lossing, an e-commerce and air cargo consultant who runs Cirrus Global Advisors, said he expects air shipments of e-commerce goods into the EU to fall by 10 per cent to 35 per cent in the weeks after the fees take effect, with likely repercussions for global air cargo volumes. “The question is how effective the platforms are in pivoting to other markets,” said Lossing. “When the US ended de minimis, Europe was a really good alternative that platforms could shift to – but now there’s not a really clear alternative to Europe.” Lossing said platforms may pressure suppliers to absorb some of the additional costs to limit price increases for consumers and protect profitability. Shein has been preparing for the change by expanding warehouse space in Wroclaw, Poland, and shipping more products to the EU in bulk. Neither Shein nor Temu responded to requests for comment. Consumer prices likely to rise as platforms pass duties on The €3 charge is a temporary measure that is due to be replaced by category-specific duties from July 1, 2028, when the new EU Customs Authority is scheduled to begin operations. The fees are likely to increase consumer prices as platforms pass on at least some of the additional costs. AliExpress, owned by Chinese e-commerce giant Alibaba, said in a statement that product listings would carry a “Price includes duties and VAT” label where applicable. For other items, customers would be shown a breakdown of import charges before completing a purchase. Amazon, which launched its Amazon Haul ultra-cheap service after Temu and Shein’s rapid growth, said 97 per cent of its EU shipments last year were fulfilled from warehouses within the bloc. For products shipped from outside the EU, customers would also be shown import charges before checking out, it said. Reporting by Helen Reid in London and Philip Blenkinsop in Brussels; Additional reporting by Bart Maijer in Brussels; Editing by Mark Potter, of Reuters. Recommended By IR Strategy IR Pro Kelly Cook on leadership, learning and her journey to CEO of David’s Bridal Nicole Kirichanskaya Electronics & appliances IR Pro How this consumer electronics chain connects online and in-store Richard Taylor Strategy IR Pro How 1-800-Contacts exec Amy Larson is fighting for affordable eyewear Nicole Kirichanskaya Strategy IR Pro How consumer brands can stand out on the digital shelf Teresa Sperti Health & beauty IR Pro From salon to shelf: Kylie Elms on scaling a beauty brand for global growth Tahlia Whitfield Social commerce IR Pro From QVC to Whatnot: The evolution of live shopping in US retail Nicole Kirichanskaya