EU slaps 3-euro fee on cheap e-commerce parcels in blow to Shein, Temu, AliExpress

[BRUSSELS/LONDON] Europe on Wednesday (Jul 1) took a first step towards curbing what it calls unfair competition from online retailers such as Shein, Temu and AliExpress by imposing a 3-euro fee on low-value e-commerce imports from China that previously entered the bloc duty-free.

The move is another setback for platforms that used customs exemptions to sell goods at ultra-low prices, programme rapid growth and prompting complaints from retailers and policymakers.

The US, their biggest market, ended its “de minimis” exemption for imports from China in May and for all imports at the end of August.

The fees, which take effect on Wednesday, will be charged for each customs classification in a shipment. A parcel containing three different types of item would incur a total charge of 9 euros, while a parcel containing multiple dresses or multiple toys would be charged 3 euros.

Duty exemptions on low-value imports have been in place for decades, with the current threshold of 150 euros introduced in 2008. But the number of e-commerce parcels entering the European Union under the exemption has surged, reaching 5.8 billion in 2025 from 1.4 billion in 2022.

“In a different trading world this made a lot of sense, but that world doesn’t exist anymore. It’s been turned on its head by e-commerce, especially from China,” EU lawmaker Dirk Gotink, who leads the customs reform topic in the European parliament, said in an interview.

“The exemption was abused and misused on an industrial scale to create a competitive advantage at the expense of EU businesses.”

E-commerce air cargo volumes set to drop

Derek Lossing, an e-commerce and air cargo consultant who runs Cirrus Global Advisors, said he expects air shipments of e-commerce goods into the EU to fall by 10 to 35 per cent in the weeks after the fees take effect, with likely repercussions for global air cargo volumes.

“The question is how effective the platforms are in pivoting to other markets,” said Lossing. “When the US ended de minimis, Europe was a really good alternative that platforms could shift to – but now there’s not a really clear alternative to Europe.”

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Lossing said platforms may pressure suppliers to absorb some of the additional costs to limit price increases for consumers and protect profitability.

Shein has been preparing for the change by expanding warehouse space in Wroclaw, Poland, and shipping more products to the EU in bulk.

Neither Shein nor Temu responded to requests for comment.

Consumer prices likely to rise as platforms pass duties on

The 3 euros charge is a temporary measure that is due to be replaced by category-specific duties from Jul 1, 2028, when the new EU Customs Authority is scheduled to begin operations.

The fees are likely to increase consumer prices as platforms pass on at least some of the additional costs.

AliExpress, owned by Chinese e-commerce giant Alibaba, said in a statement that product listings would carry a “Price includes duties and VAT” label where applicable. For other items, customers would be shown a breakdown of import charges before completing a purchase.

Amazon, which launched its Amazon Haul ultra-cheap service after Temu and Shein’s rapid growth, said 97 per cent of its EU shipments last year were fulfilled from warehouses within the bloc. For products shipped from outside the EU, customers would also be shown import charges before checking out, it said. REUTERS