EU to Impose Customs Duty on Low-Value E-Commerce Packages

The European Union is set to implement a three-euro customs duty on packages valued up to 150 euros starting in July 2026. This decision primarily targets online retailers such as Shein and Temu, which have significantly increased package shipments to European customers.

The initiative aims to level the playing field for all traders, regardless of their location, while addressing the overwhelming influx of low-cost imports from China. Notably, these imports constituted a significant portion of e-commerce shipments below the 150-euro threshold in recent years.

The measure is anticipated to enhance compliance with EU regulations and generate approximately 1.5 billion euros annually for the EU budget. Chancellor Friedrich Merz has voiced support for stricter regulations, emphasizing the need to mitigate issues related to fraud and excessive packaging waste.

As the landscape of online shopping evolves, these new customs duties could alter pricing dynamics for consumers, although the exact impact remains uncertain.