EU agrees to 3-euro small parcel tax to tackle barrage of China imports
It will be introduced on a temporary basis until the bloc reaches a permanent solution for taxing such imports
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[BRUSSELS] European Union finance ministers agreed on Friday (Dec 12) to impose a three-euro duty (S$4.54) on all small parcels imported into the bloc starting Jul 1, 2026. This is to help tackle a flood of cheap imports by the likes of Shein and Temu.
The move comes a month after the bloc agreed to scrap a duty exemption for packages worth less than 150 euros imported directly to consumers in the 27 nation bloc, in many cases through Chinese-founded platforms.
The fixed fee will be introduced on a temporary basis and will stay in place until the bloc can settle on a permanent solution for taxing such imports, an EU spokesperson said.
In 2024, 4.6 billion of such small packages entered the EU – more than 145 per second – with 91 per cent of them originating from China. The EU expects those numbers to rise.
European retailers argue that they face unfair competition from overseas platforms, such as AliExpress, Shein and Temu, which they claim do not often comply with the EU’s stringent rules on products.
Key EU power France has made the matter a priority, given the 800 million such packages shipped to the country last year, and strong domestic pressure to take action.
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French Finance Minister Roland Lescure welcomed the flat tax as “a major victory for the European Union”.
“Europe is taking concrete steps to protect its single market, its consumers and its sovereignty,” he said.
The move comes as the EU strives to bolster the continent’s competitiveness, by making it easier to do business in Europe through slashing red tape.
Alongside ending the duty exemption, the EU executive in May proposed a small package handling fee worth two euros. EU member states have yet to agree on the level of that fee, but hope it will apply from late 2026. AFP
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