EU Tax on Parcels from China 2026: Ending €150 Duty-Free Exemption for Shein, Temu Imports

Discover how the European Union’s decision to impose taxes on low-value parcels from China in 2026 addresses cheap e-commerce imports, protects local industries, and changes shopping habits.

Introduction

The European Union is set to revolutionize cross-border e-commerce by introducing taxes on parcels from China starting in 2026. This pivotal shift ends the long-standing €150 de minimis threshold, which previously allowed duty-free entry for low-value goods. Spearheaded by France, the policy targets the influx of inexpensive products from platforms like Shein and Temu, aiming to level the playing field for European businesses.

Announced in principle on November 13, 2025, during a Brussels meeting of EU competitiveness ministers, the measure responds to concerns over undervalued imports flooding the market. Effective from the first quarter of 2026, it promises greater economic sovereignty amid rising Chinese e-commerce dominance. This guide breaks down the EU tax on parcels from China 2026, its implications, and how it affects everyday shoppers and retailers.

Analysis

The EU’s de minimis rule, established under the Union Customs Code, exempts parcels valued below €150 from import duties and VAT. This facilitation aimed to simplify small consignments but has been exploited by Chinese e-commerce giants shipping ultra-cheap apparel, electronics, and gadgets directly to consumers.

Background on the De Minimis Threshold

Implemented since 2016, the €150 limit processed over 4 billion parcels annually by 2024, with China accounting for 70% of extra-EU imports under this value, per European Commission data. Platforms like Shein ship billions of low-cost items, often declared at minimal values to evade taxes, undercutting EU textile and consumer goods sectors.

France’s Leadership Role

French Economy Minister Roland Lescure described the agreement as “a major step towards economic sovereignty.” France pushed for reform, highlighting how small parcels bypass tariffs, leading to job losses in local manufacturing. The November 2025 ministerial meeting secured political consensus, with formal adoption slated for December 12, 2025.

Debate on Tariff Structures

While the exemption ends, details vary: the European Commission favors a uniform duty rate, potentially 10-20% VAT plus customs duties based on product type. France proposes a flat €5 fee per parcel to counter undervaluation practices common in Chinese exports.

Summary

In summary, the EU will tax parcels from China beginning 2026 by abolishing the €150 duty-free exemption. This targets e-commerce surges from Shein and similar platforms, with implementation in Q1 2026 following December 2025 approval. Expect higher costs for low-value imports, benefiting EU producers while challenging direct-to-consumer models.

Key Points

Practical Advice

For consumers and businesses navigating the EU tax on parcels from China 2026, proactive steps ensure compliance and minimize disruptions.

For Individual Shoppers

Anticipate 10-30% added costs on orders under €150. Track parcels via EU customs portals like the Binding Tariff Information system. Bulk-buy before Q1 2026 or switch to EU-based sellers to avoid new tariffs on Chinese parcels. Use price comparison tools incorporating projected duties.

For E-Commerce Businesses

Update pricing to reflect duties; consider EU warehousing via platforms like Amazon FBA. Declare accurate values to prevent penalties. Diversify suppliers to non-Chinese origins or invest in local production. Software like Avalara automates VAT calculations for cross-border sales.

Preparation Timeline

Points of Caution

While the policy curbs unfair competition, risks include enforcement challenges and consumer backlash.

• Undervaluation Persistence: Chinese exporters may continue low declarations, prompting stricter EU customs checks and delays.
• Price Hikes: Shein-like fast fashion could pass costs to EU buyers, raising apparel prices by 15-20%.
• Supply Chain Disruptions: Small businesses reliant on cheap imports face margins squeeze; diversify early.
• Administrative Burden: Increased declarations mean longer delivery times, up to 10-15 days post-2026.

Comparison

Comparing the new EU regime to existing systems highlights its rigor.

Current EU vs. Post-2026

Today: €150 duty-free (no VAT/duties). Post-2026: Full VAT (avg. 20%) + duties (0-17% by HS code) on all parcels, regardless of value.

EU vs. Global Peers

The EU’s move aligns with US efforts against Shein/Temu but goes further by eliminating the threshold entirely.

Legal Implications

This reform operates within the EU’s Union Customs Code (Regulation (EU) No 952/2013), amended via delegated acts. It complies with WTO rules on non-discrimination, as duties apply universally to non-EU parcels.

Enforcement and Penalties

Customs authorities gain powers for post-clearance audits. Misdeclaration faces fines up to 100% of evaded duties under EU Directive 2008/9/EC. Businesses must register for EORI numbers; consumers risk parcel seizures.

Trade Relations

China may challenge via WTO dispute settlement, but EU precedents (e.g., steel safeguards) support such measures for public morals and industry protection. No immediate retaliation expected, per diplomatic statements.

Conclusion

The EU tax on parcels from China starting 2026 marks a bold stance against e-commerce imbalances, fostering fair trade and protecting jobs. While consumers face higher prices, long-term benefits include robust local industries and sustainable shopping. Stay informed via official EU channels to adapt seamlessly. This policy underscores the evolving landscape of global tariffs on Chinese imports in the EU.

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