EU closes the under-€150 duty exemption from July 1, ending the free ride for Temu, SHEIN and AliExpress
A €3 flat customs duty per item takes effect on Tuesday on all low-value parcels entering the bloc from outside; Chinese platforms had already shifted to EU warehousing ahead of the deadline
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developments
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TechTimes reported that 5.9 billion low-value items entered the EU from non-EU countries in 2025 without a single euro in duties, equating to roughly 12 million parcels per day. The Product Identification Data (PID) requirement, which compels sellers to label parcels with standardised product codes, went live July 1 on a voluntary basis; mandatory compliance is set for November 1, 2026. First-week logistics reports flagged rejection of parcel-level data at volume due to missing HS codes, mismatched declared values, absent IOSS numbers and EORI reference mismatches, creating a live customs-capacity stress test across EU member states. ↗
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Google Shopping ad-visibility data from smec shows Temu halved its EU advertising presence and SHEIN is near-total exit from cross-border EU ads, as platforms reduce direct China-EU shipping exposure rather than absorb the duty. AliExpress maintained higher visibility, suggesting a less complete warehouse pivot. The structural shift to EU fulfilment centers is now the main competitive dynamic, compressing platform margins over the next 18 months. ↗
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The €3 per-item flat duty took effect across EU member states on July 1. Shein and Temu confirmed they had pre-positioned inventory in EU warehouses, meaning most consumer orders will route through domestic logistics and avoid the new duty. For direct cross-border shipments still originating from China, the duty is now assessed at the parcel's point of entry into the bloc. ↗
Summary
On July 1, 2026, the European Union abolishes the customs duty exemption that allowed parcels valued under €150 to enter the bloc from outside free of import duty. A flat €3 charge applies per distinct product type in each consignment, not per box, so a parcel containing three different items attracts a €9 bill. The temporary measure runs until July 1, 2028, when standard tariff rates take over. Chinese e-commerce giants China Temu, SHEIN and AliExpress built their European growth on the exemption; both Temu and SHEIN have been shifting inventory to EU-based warehouses for months ahead of the deadline, softening the immediate blow but raising their long-run cost structure.
Why it matters
The change removes a structural cost advantage that let Chinese platforms undercut European retailers on price while also bypassing the EU's product safety and chemical testing requirements. The March 2026 Customs Code reform, which reclassifies large marketplaces as "deemed importers," compounds the compliance exposure: sellers registered in the Import One-Stop Shop now face potential market bans for non-compliant goods, not just fines.
What to watch
- Whether the per-item duty calculation survives a legal challenge from the platforms.
- How quickly Temu and SHEIN complete their EU warehousing pivot and whether that eliminates their price advantage.
- The 2028 review, when normal customs duty rates will replace the flat €3 and the effective tariff could jump significantly.
- Whether the US follows with its own de minimis reform after ending the exemption for Chinese goods in 2025.