EU steps up crackdown on cheap Chinese parcels flooding European market

The EU 27 economy ministers reached an agreement on Thursday to terminate the €150 customs duty exemption that currently applies to parcels coming from non-EU countries.

The decision will impact Chinese e-commerce platforms, such as Shein and Temu, which are flooding the EU market with small parcels. In France, Shein is also at the centre of a scandal, facing legal proceedings over the sale of child-like sex dolls on its platform.

“This is a defining moment,” European Commissioner for Trade Maroš Šefčovič said after the meeting, adding that the move “sends a strong signal that Europe is serious about fair competition and defending the interests of its businesses.”

A whopping 4.6 billion parcels were imported in the EU in 2024, EU Economy Commissioner Valdis Dombrovskis recalled on Thursday.

He warned that the trend is “dramatically increasing,” adding that 91% of small parcels come from China.

The decision to remove the exemption on small parcels is part of a broader overhaul of EU customs rules which could take time.

Urgency to act as Chinese goods flood market

The 27 member states are expected to meet again in December to agree on a temporary system that would enable the implementation of the measures.

EU trade commissioner Šefčovič said that the EU will be ready to move as early as 2026.

“Ending the exemption will close long-standing loopholes that have been routinely exploited to avoid customs duties,” a European diplomat said.

The agreement reached Thursday by EU ministers means customs duties will be payable from "the first euro" on all goods entering the EU, like value-added tax, according to the same official.

The latest moves signal the tide may be turning for Chinese e-commerce platforms that have been moving aggressively into the European market.

A €2 levy for small packages proposed in July by the European Commission is already being discussed by the 27 member states.

Individual member states are also introducing national measures. Italy is working on a tax to defend its fashion industry from a wave of cheaper Chinese orders which national producers cannot compete with on pricing.

“We are satisfied with the measure introducing a tax on small parcels from non-EU countries, a phenomenon that is destroying retail trade,” Italian Minister of Economy Giancarlo Giorgetti said on Thursday.

EuroCommerce, which represents EU retailers in Brussels, first sounded the alarm over the increase in orders coming from Chinese platforms last month and called on European authorities to act in a coordinated manner.

“A swift, harmonised EU solution is essential, as such proposals risk fragmentation and undermining the level playing field,” Christel Delberghe, director general of EuroCommerce, said.