The European Union has taken decisive action to level the playing field for local businesses by eliminating a long-standing duty exemption on small-value packages imported from China. This move directly targets retail giants like Temu and Shein that have been flooding the EU market with cheap goods.
End of an Era for Duty-Free Imports
Currently, packages valued at less than 150 euros ($174) enjoy complete duty-free status when shipped directly to consumers across the 27-nation bloc. This loophole has primarily benefited Chinese-founded platforms, creating what European retailers describe as unfair competition.
The scale of this trade is staggering. Last year alone, 4.6 billion small packages entered the EU without duties—equivalent to more than 145 parcels every second. Even more concerning for European officials is that 91 percent of these shipments originated from China, with expectations that these numbers will continue rising without intervention.
Accelerated Timeline for Implementation
Member states, particularly France, have pushed for rapid implementation of the new rules. Rather than waiting until 2028 as initially planned, EU countries now aim to scrap the duty exemption from the start of next year.
An EU official confirmed that work is underway on "a simple, temporary solution to enable earlier implementation as soon as possible". This accelerated timeline reflects growing urgency among European businesses struggling to compete with overseas platforms that often bypass EU regulatory requirements.
European Trade Commissioner Maros Sefcovic emphasized the significance of this decision, stating: "Reaching a political agreement sends a strong signal that Europe is serious about fair competition and about defending the interests of its businesses." He added that "Europe must be able to protect its borders effectively and uphold fair competition" in today's global marketplace.
Additional Measures and National Actions
Beyond eliminating the duty exemption, the EU executive proposed in May a small package handling fee worth two euros. While member states haven't finalized the fee amount, they hope it will take effect from late 2026.
Some countries have grown impatient with the EU-wide process. Romania has already implemented its own solution, imposing a five-euro fee on small parcels to address the issue immediately.
France has been particularly vocal about the problem, given that approximately 800 million such packages arrived in France alone last year. French Finance Minister Roland Lescure welcomed the EU agreement, calling it a "key step for the protection of European consumers and the internal market".
Lescure noted that the measures will help "fight more effectively to prevent dangerous products and those that do not comply with our European regulations entering" the EU market. He described the decision as "a major step for the economic sovereignty of the European Union" that validates France's persistent efforts to reach an agreement.
This comprehensive approach forms part of the EU's broader strategy to enhance continental competitiveness by reducing bureaucratic burdens on European businesses while ensuring fair market conditions for all participants.
