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The EU is swamped with cheap parcels imported from Chinese e-commerce giants. Products from SHEIN, Temu and the like have been benefitting from a tax loophole that will soon be axed by the EU.

Until now, goods valued under €150 could enter the bloc without paying customs duties under the so-called “de minimis” exemption. Chinese platforms exploited this by shipping billions of low-value parcels directly to European consumers from China, avoiding up to 12% in import duties and bypassing many regulatory checks.

The EU now receives more than two billion of these packages every year, with authorities estimating that up to 65% are undervalued or incorrectly declared. The system helped companies like SHEIN to grow fast while undercutting European retailers.

For consumers, the loophole meant ultra-cheap prices and fast delivery, but also growing concerns over unsafe products, toxic chemicals, counterfeit goods and environmental damage linked to billions of individually air-shipped packages.

Under new EU rules starting this July, low-value imports will face a flat €3 customs duty, with extra charges depending on the type of goods in a parcel. Online marketplaces will also become legally responsible by default for the safety of the products they sell into the EU, rather than passing liability onto consumers.

The changes are expected to make imported goods more expensive and deliveries slower, but EU officials argue they will create fairer competition for European businesses and improve product safety standards for shoppers.

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