The EU is increasing import costs in the fight against unwanted cheap imports. The member states agreed that every package with a goods value of up to 150 euros will be subject to a tax of three euros from July 2026.
The requirement decided by the EU finance ministers at a meeting in Brussels is likely to affect online retailers such as Shein, Temu, AliExpress and Amazon. The tax should be collected by the national customs authorities. So far, parcels with a value of up to 150 euros can be imported into the international community duty-free.
Delivery is an interim solution
However, the new tax is only planned for a temporary period, as in the future all goods imported into the EU will be subject to customs duty starting with the first euro. It is still unclear whether cheap products will become more expensive as a result. Theoretically, producers or importers could also cover the additional costs.
Online retail has led to an exponential increase in deliveries of small parcels of low-value goods to the EU in recent years. According to the EU Commission, around twelve million packages arrived in the EU every day in 2024 – significantly more than in the previous two years.
The exemption limit is to be abolished from 2028
In November, the EU states agreed to abolish the currently applicable 150 euro exemption limit. However, the new regulation supported by the federal government will only apply from 2028, when a digital platform for processing and control will also be launched. The abolition of the exemption limit is intended to ensure that all retailers – regardless of their location – have the same competitive conditions.
Chancellor Friedrich Merz (CDU) recently emphasized that he was trying to avoid unfair trading practices in the European Union. We are currently seeing a systematic abuse of the duty exemption of 150 euros per parcel in Germany, through mass shipments, especially from China. The huge abuse of the exemption limits must be stopped.
Fight against fraud
In addition, the new requirements are intended to address fraud: According to estimates, the European Commission estimates that 65 percent of packages sent to the EU deliberately enter a value that is too low in the customs declaration in order to claim the exemption. According to the authority, this has a negative impact on EU companies that cannot compete with the correspondingly lower sales prices – especially small and medium-sized companies.
In addition, the exemption is an incentive for importers to split larger orders into smaller packages when shipping to the EU, according to the Commission. This further contributes to unequal competitive conditions for European companies and also causes, among other things, packaging waste.
The EU Commission is considering further taxes
The head of the Federal Association of Consumer Organizations, Ramona Pop, called the EU’s measures the first steps to stem the flood of packages. “In addition, online marketplaces must generally be held responsible if they sell unsafe or dangerous products,” she continued. A study by Stiftung Warentest recently showed that products in the price segment under 150 euros often do not comply with EU regulations, warned Pop.
In addition to the decided temporary levy and the customs obligation from 2028 on cheap products, the EU Commission is reportedly considering a flat rate levy of up to two euros on corresponding orders in view of the rapidly increasing number of parcels from third countries.
Shopping portals popular with consumers
According to the German Trade Association (HDE), around 400,000 packages are sent from Shein and Temu to German customers every day. The sales of the two portals in Germany were between 2.7 and 3.3 billion euros in 2024. According to HDE, more than 14 million people in this country shopped at Temu and Shein last year.
The two shopping portals are very popular with consumers. According to a current ranking by the retail research institute EHI, Shein was already the seventh largest online shop in Germany in 2024. Temu ranks 4th among marketplaces.
Temu is an online marketplace where numerous companies sell various goods. The Chinese company has been active in Germany since spring 2023 and continues to cause a stir with its low prices and high discounts. Products are often delivered directly from the manufacturer to the customer. The fashion group Shein, founded in China and now based in Singapore, is both a manufacturer, retailer and marketplace.
Online shops controversial
Both providers are controversial. Politicians, sales representatives and consumer advocates complain, among other things, about product quality, a lack of controls and unfair competition conditions. They are calling for stricter regulation and better protection when shopping online.
In France, Shein has recently come under increasing public scrutiny. After it became known that the online retailer was offering child-looking sex dolls and was selling weapons, the French government initiated proceedings against the platform. As a result, the government announced that it would check 200,000 Shein packages at Paris airport. Shein wants to cooperate with the authorities.