Taxation of small parcels from China: EU begins practical implementation

The principle has been decided, now the practical modalities must follow. The 27 EU member states want to find a temporary solution on Friday to tax the flood of small Chinese packages “as soon as possible” in 2026, rather than in 2028 as originally planned.

In 2024, around 4.6 billion shipments with a value of less than 150 euros reached the European market, more than 145 per second. 91 percent of them came from China. A month ago, European finance ministers approved the abolition of the current customs exemption for such packages from next year.

Although the measure is intended to apply to all non-EU countries, it is primarily aimed at containing the European market glut of inexpensive Chinese products. These often do not comply with EU standards and are usually ordered via platforms such as Shein, Temu or AliExpress. The influx of duty-free packages is increasingly causing criticism: European producers and traders see this as unfair competition.

In addition, the enormous volume of packages arriving at European airports and ports makes comprehensive control difficult. Under these conditions, dangerous or counterfeit products can hardly be reliably intercepted – they often reach consumers without being checked.

“Four years ago, a billion packages arrived from China. Today there are more than four billion,” emphasizes French Economy Minister Roland Lescure. “These packages today represent unfair competition against inner-city commerce, which in turn pays taxes,” he told AFP. “It is therefore crucial to act quickly, otherwise we will act too late.”

Herculean tasks

France is in a conflict with the Chinese e-commerce giant Shein, triggered by a scandal over the sale of sex dolls with child-like appearance and category A weapons. Paris had been instrumental in lobbying Brussels to abolish customs exemptions for small shipments. The reform was actually already planned as part of the modernization of the Customs Union, but with a start date of 2028. But in November, the member states agreed to start implementation “as soon as possible”.

However, this requires a “simple and temporary” solution to tax billions of packages. The planned digital customs data platform, which is intended to make processing easier in the future, is not yet ready for use. Applying the usual tariff rates from 2026 would be extremely complicated. Tariffs vary depending on product category, subcategory and country of origin. This could completely block the already overstretched customs services.

Lescure spoke out in favor of a “flat tax” on Thursday. “We want the measures taken in Europe to have an impact,” he said. In his opinion, “proportional taxation” is not a deterrent enough.

First step

“Will it be January 1st? Will it be April 1st? We’ll see. But in any case, I would like it to happen very quickly in 2026,” Lescure continued. However, introducing a transition system is “not easy because we have to do it with our existing resources,” admits a European diplomat. He did not want to commit to a specific date for the entry into force of the temporary regulation.

But taxing small packages is just a first step in Europe’s offensive against the flood of Chinese goods. From November 2026, additional processing fees will be introduced for parcels under 150 euros. The EU has proposed two euros per shipment for this.

This fee is intended to help finance the expansion of controls. Together with the imposition of tariffs, it is intended to help improve the conditions of competition and restore fair opportunities between European products and the “Made in China” competition.

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