Cheap products from China became more expensive with a EU tax. (Photo by Kevin Frayer/Getty Images)

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EU Finance Ministers seal deal on €3 duty on cheap Chinese parcels.

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European Union Finance Ministers today struck an agreement to impose a flat €3 customs duty on small e-commerce parcels valued under €150 entering the bloc, effective 1 July 2026, in a move to stem the flood of low-cost Chinese imports.

It is said the move levels the playing field for European retailers, who suffer from competition by Chinese platforms which often do not comply with the EU’s stringent rules on products.

The decision was reached during the monthly Economic and Financial Affairs Council (ECOFIN) meeting and targets the so-called de minimis exemption that has allowed billions of duty-free shipments.

This mostly refers to shipments from platforms like Shein, Temu, and AliExpress—to bypass tariffs, costing the EU an estimated €1 billion in annual revenue loss and fuelling concerns over unfair competition, product safety, and environmental harm.

The fixed €3 levy applies per parcel, not per item within it, meaning a single package containing multiple goods from one order incurs just the one charge, while split shipments could multiply costs for consumers.

This temporary measure bridges the gap until a permanent overhaul of the EU’s customs system—agreed in principle last month—takes effect, scrapping the €150 threshold entirely and introducing duties “from the first euro” by 2028, though accelerated to as early as 2026 via a new digital data hub.

French Economy Minister Roland Lescure hailed it as a “major victory for the European Union,” crediting the push to counter undervalued goods and protect local industries.

The influx has ballooned dramatically: In 2024 alone, 4.6 billion low-value parcels—averaging 12 million daily—crossed EU borders, with over 90 per cent originating from China, doubling from prior years and exacerbating fraud, substandard imports, and carbon-intensive direct-to-consumer shipping.

Today’s accord was influenced by national pioneers like Romania’s €5 handling fee introduced last month and Italy’s impending similar levy.

It mirrors US reforms that axed its $800 de minimis threshold in July 2025, rerouting e-commerce traffic toward Europe.

The measure is distinct from the proposed so-called ‘handling fee’ which is currently under discussion in the context of the customs reform package and the multiannual financial framework, the Council said in its press release.