EU to impose 3 euro duty on e-commerce parcels from July 2026

Reuters12-12
UPDATE 2-EU to impose 3 euro duty on e-commerce parcels from July 2026

EU had been due to end low-value parcel customs exemption in 2028

Surge in parcel imports to 4.6 bln in 2024 sparks EU pressure to act faster

EU also looking into e-commerce parcel handling fee

Updates with details of customs duty plan per item

By Philip Blenkinsop

BRUSSELS, Dec 12 (Reuters) - European Union finance ministers agreed on Friday to set a 3 euro ($3.52) customs duty on low-value parcels arriving in the bloc, part of efforts to crack down on cheap Chinese e-commerce imports such as from online retailers Shein and Temu.

The duty will apply per item type from July 1, 2026, and will be in place until a permanent solution is found to eliminate the "de minimis" duties exemption for online purchases below 150 euros, the EU's Council of its 27 governments said in a statement.

The bloc was due to remove the exemption in 2028 as part of an overhaul of its customs system, but pressure to act faster has grown amid concerns about Chinese goods being dumped in Europe.

"This temporary measure responds to the fact that such parcels currently enter the EU duty-free, leading to unfair competition for EU sellers, health and safety risks for consumers, high levels of fraud and environmental concerns," the Council said.

BULK OF LOW-VALUE PARCELS FROM CHINA

A Council source said the duty would apply per product type, based on six-digit tariff codes. This means 10 pairs of socks of the same type would incur a 3-euro charge, but five pairs of socks made from wool and five from cotton would count as two item types and incur a 6-euro charge.

Irish EU lawmaker Barry Andrews, who had previously sought a 5-euro levy per package, said he welcomed the 3-euro duty per item agreement and said EU countries should increase it if it did not stem the flood of cheap deliveries.

Online platforms such as Shein, Temu PDD.O, AliExpress 9988.HK and Amazon Haul AMZN.O send clothes, accessories and gadgets from Chinese factories directly to shoppers at rock-bottom prices.

Due to the customs waiver, the number of low-value e-commerce packages arriving in the bloc doubled last year to 4.6 billion, more than 90% of them from China. Imports this year are set to be even higher.

European retailers have broadly welcomed the move to impose customs duties on low-value parcels, saying it is a step towards fairer competition.

The EU is also considering a separate handling fee, which the European Commission has proposed should be set at 2 euros per parcel. It is not clear when it would be imposed.

($1 = 0.8531 euros)

(Reporting by Philip Blenkinsop and Inti Landauro. Editing by Bart Meijer, Mark Potter and Alex Richardson)

((philip.blenkinsop@thomsonreuters.com; +32 2 585 2869))

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