EU Ends Duty-Free Exemption for Low-Cost Online Imports

European Union regulators have ended a duty-free exemption for low-cost online imports and introduced a new levy on select e-commerce platforms.

This policy shift targets the surge of inexpensive goods entering the bloc, particularly from China. By removing tax loopholes, the EU aims to address trade frictions and increase customs revenue, while raising the cost of ultra-fast fashion and budget electronics for consumers.

Under the previous rules, parcels valued under €150 ^[1] were exempt from customs duties. This exemption ended in late June, effectively removing the threshold that allowed millions of small packages to enter the EU without additional charges ^[2].

As part of the new measures, regulators have implemented a €3 per-item charge ^[1] specifically targeting parcels from platforms such as Shein and Temu. This per-item fee is designed to capture revenue from the high volume of low-value shipments that previously bypassed the tax system.

The scale of the impact is significant, as approximately €5.9 billion ^[3] in imports are now subject to these new duties. The EU expects the levy to generate roughly $6 billion ^[4] in projected revenue.

Officials said the move is intended to create a more level playing field for European retailers who do not benefit from similar exemptions. The new charges apply across the entire European Union, meaning shoppers in all member states will see price increases on goods sourced from these specific platforms ^[2].

The implementation of the levy began the week after June 23 ^[4]. This timing ensures that the high volume of summer shopping is captured under the new regulatory framework, preventing the continued flow of untaxed imports during peak demand periods.