For years, Chinese e-commerce giants like SHEIN, Temu, and Aliexpress have exploited a regulatory gap to ship billions of low-value parcels into the European Union without paying customs duties. Under the so-called “de minimis” exemption, goods valued under €150 could enter the bloc duty-free—a provision originally designed to ease trade in small personal shipments. The platforms turned it into a commercial pipeline, flooding European markets with ultra-cheap clothing, electronics, and household items while bypassing up to 12% in import duties and many safety checks.
The scale of the influx is staggering. The EU now receives more than two billion such packages annually, and authorities estimate that up to 65% of them are undervalued or incorrectly declared. This systematic undercutting has allowed companies like SHEIN to grow rapidly, often at the expense of European retailers who must comply with stricter tax and safety regulations.
New Rules from July 2026
Starting this July, the EU will scrap the de minimis exemption for commercial imports. Instead, all low-value parcels will face a flat customs duty of €3, with additional charges depending on the type of goods inside. The reform also shifts legal responsibility for product safety: online marketplaces will become default liable for the items they sell into the EU, rather than passing that burden onto consumers.
EU officials argue the changes will create fairer competition for European businesses and improve product safety standards for shoppers. “The era of unchecked, duty-free imports from Chinese platforms is ending,” said a European Commission spokesperson. The move follows years of complaints from European retailers and consumer groups about unsafe products, toxic chemicals, counterfeit goods, and the environmental damage caused by billions of individually air-shipped parcels.
For consumers, the immediate effect will be higher prices and slower delivery times. The flat €3 duty, combined with new administrative costs, will likely push up the cost of many items that previously arrived for just a few euros. However, the EU hopes that the long-term benefits—safer products, less waste, and a more level playing field for local businesses—will outweigh the short-term inconvenience.
This regulatory shift is part of a broader European push to assert control over digital marketplaces. Earlier this year, the EU ended a tax-free loophole for fast-fashion imports, raising costs for SHEIN and Temu. The new rules also align with the bloc’s Digital Services Act, which imposes stricter obligations on large online platforms. Meanwhile, the EU’s MiCA framework is creating a single crypto market, forcing hundreds of firms to exit or comply.
The crackdown comes as European e-commerce faces a period of consolidation. The London Stock Exchange has seen a shift from fundraising to market depth, while major players like Binance have withdrawn from EU markets after failing to secure a MiCA licence. For Chinese platforms, the new customs regime represents a significant hurdle, but one that may accelerate their efforts to localise operations within Europe—by opening warehouses, registering as EU importers, and adapting to local standards.
Whether these measures will be enough to stop SHEIN, Temu, and Aliexpress from dominating the e-market remains uncertain. The platforms have deep pockets and a proven ability to adapt. But the EU is sending a clear signal: the era of regulatory arbitrage in cross-border e-commerce is coming to an end.
