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The European Union’s new €3 flat customs duty on parcels worth €150 or less has caused a 30-40% drop in small parcel imports from China since taking effect on July 1. French customs data shows Temu’s sales volumes fell 50%, AliExpress declined 37%, while Shein proved more resilient with a 15% drop, aided by its new warehouse in Poland. The measure ends a long-standing tax exemption that Brussels argued gave foreign platforms an unfair advantage over European retailers. The European Commission also cited safety concerns, noting over 60% of inspected low-value products in 2025 failed to meet EU standards. The duty serves as a temporary measure ahead of a broader customs system reform planned for 2028, with additional parcel handling fees potentially arriving in November.
Key Elements
The European Union’s decision to end a long-standing tax exemption for low-value imports has triggered an immediate and dramatic drop in the flow of small parcels from China. In the weeks since a flat €3 customs duty took effect on July 1, imports of consignments worth €150 or less have fallen by 30% to 40%, according to figures from French customs authorities cited by the Ministry of the Economy on Thursday.
The new levy, which applies per product category, marks a fundamental shift in how the bloc treats the millions of packages that have poured into European households from platforms like Shein, Temu, and AliExpress. For years, these direct-to-consumer shipments bypassed the duties that brick-and-mortar European retailers must pay when importing goods, a disparity Brussels has long argued created an unfair competitive advantage for foreign e-commerce giants.
The impact has been uneven across the major Chinese platforms. Between June and July, sales volumes on Temu collapsed by 50%, while AliExpress saw a 37% decline. Shein proved more resilient, with volumes falling a comparatively modest 15%. The company’s relative strength stems from its strategic decision to open a new warehouse in Poland at the end of 2025, a move that has helped cushion the tax blow by localizing part of its fulfillment operations within the EU’s borders.
The French government has seized on the early data as evidence that stricter regulation can alter the behavior of dominant online marketplaces. The scale of the pre-existing trade underscores why policymakers felt compelled to act: in 2025 alone, 5.9 billion low-value items entered the Union, equivalent to more than 16 million parcels every day.
Beyond the competitive concerns, the European Commission has framed the measure as a necessary step for consumer protection. A survey conducted across the EU in 2025 found that more than 60% of inspected low-value products failed to meet European requirements or safety standards. By imposing a formal duty process, customs authorities gain better visibility into the contents of these shipments and can more effectively identify high-risk goods before they reach consumers.
| Platform | Sales Volume Change (June-July) |
|---|---|
| Temu | -50% |
| AliExpress | -37% |
| Shein | -15% |
Note: Figures reflect month-over-month changes following the introduction of the €3 flat customs duty on July 1.
The current measure is not intended as a permanent fixture of EU trade policy. It is designed as a stopgap that will accompany a broader overhaul of the European customs system scheduled for 2028. That reform is expected to introduce more sophisticated mechanisms for handling the modern reality of cross-border e-commerce, which has grown far beyond the capacity of traditional customs frameworks designed for bulk shipments.
Further costs may be on the horizon even before that reform takes effect. Starting in November, additional fees to fund the handling and inspection of parcels could be introduced, potentially adding another layer of expense for platforms and consumers alike.
The rapid decline in parcel volumes suggests that the €3 fee, while modest in absolute terms, has been enough to alter purchasing behavior. For products that often retail for just a few euros, the duty represents a meaningful percentage increase, eroding the price advantage that has fueled the explosive growth of Chinese e-commerce in Europe. Whether consumers will adapt by consolidating orders, shifting to platforms with localized warehousing like Shein’s Polish operation, or simply reducing their cross-border purchases remains to be seen.
The early data from France, however, indicates that the era of frictionless, duty-free direct imports from China is coming to an end, with significant implications for the competitive landscape of European retail.
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