The European Union has introduced a new €3 customs duty on low-value e-commerce imports, ending a tax exemption that allowed goods worth less than €150 to ente...
The European Union has introduced a new €3 customs duty on low-value e-commerce imports, ending a tax exemption that allowed goods worth less than €150 to enter the bloc without customs duties. The measure came into effect on July 1 and mainly affects online shopping platforms such as SHEIN, Temu and AliExpress. EU officials say the new duty is intended to address unfair competition, improve product safety, reduce fraud and strengthen customs enforcement across member states.
The new customs duty applies to small parcels imported into the EU through online marketplaces. It is separate from a proposed €2 handling fee that is still being discussed under wider customs reforms and the European Union’s long-term budget plans. According to the European Council, the measure is temporary and will remain in place until broader customs reforms take full effect. The EU says the policy is necessary because the number of low-value imports has increased significantly in recent years.
European authorities estimate that more than two billion e-commerce parcels valued below €150 enter the EU every year. The large number of packages has placed pressure on customs authorities, making inspections more difficult. According to the European Council, up to 65 per cent of these parcels may enter with incorrect declared values or without verified safety information. Officials say this has made stronger customs controls necessary.
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Dutch Member of the European Parliament Dirk Gotink said there was broad political agreement on introducing the new measure. “The urgency was so big that there was deep political consensus,” he told Euronews. He added that the decision took time because member states were slow to agree that European customs systems needed to work together to address the growing number of non-compliant fast fashion products entering the region.
Consumer organisations have also raised concerns about product safety. Laura Clays, spokesperson for consumer organisation Testachats, said customs authorities are unable to inspect most incoming parcels because of their high volume. “I think only 0.006 per cent of parcels get checked by customs. The number of products coming into Europe means not all of them can be tested,” she said. She added that independent assessments found around 70 per cent of tested products either failed to comply fully or did not comply with EU safety requirements.
The previous customs exemption allowed companies such as SHEIN to ship individual orders directly from China without paying customs duties on goods valued below €150. According to the EU, this enabled companies to avoid import duties of up to 12 per cent while keeping prices low. Officials say the system gave foreign online retailers an advantage over European businesses, which face higher operating costs. Gotink described the practice as “tax avoidance on an industrial scale, basically.”
Safety concerns have also influenced the reforms. Investigations by European consumer groups found that some imported products contained hazardous substances or failed to meet European safety standards. A Greenpeace Germany investigation reported that 32 per cent of tested clothing contained illegal levels of hazardous substances, including heavy metals, formaldehyde and PFAS chemicals. Safety inspections also identified toys and children’s clothing with loose components and dangerous designs that posed choking risks.
The reforms also introduce new legal responsibilities for online marketplaces. Previously, consumers were legally regarded as the importers of products bought from non-EU sellers, meaning they carried legal responsibility if products were unsafe. Under the new EU Customs Code Reform, which took effect on March 26, digital marketplaces are now classified as “deemed importers.” This means platforms are legally responsible for ensuring products comply with EU product safety laws and may face financial penalties or market bans if they fail to meet those requirements.
Consumers are expected to pay more for many low-cost online purchases under the new rules. For example, a €20 order containing different product categories could attract multiple €3 customs charges, with the proposed €2 handling fee increasing the total cost further. Customs authorities will also digitally screen packages before entry, which may result in longer delivery times. However, Clays said stronger inspections could reduce the number of unsafe products reaching consumers. She said, “If it makes sure more non-compliant products are rejected, or that producers and sellers increase compliance with European laws before listing products online, then it’s a good thing.”
The policy is also expected to reshape competition within the European retail market. Online platforms such as SHEIN, Temu and AliExpress may need to change their business models by investing in warehouses inside the European Union instead of relying on direct shipments from China. The EU says the changes will remove the price advantage created by the previous customs exemption and create fairer competition for European retailers. Domestic clothing companies such as Zara and H&M are expected to benefit from the reforms because their European supply chains allow them to restock products more quickly while complying with EU safety and sustainability standards. The broader customs reform will continue in stages, with the EU Customs Data Hub scheduled to begin operating in 2028, when the €150 exemption will be removed permanently and all imported goods will be taxed from the first cent.
