The European Union (EU) began applying a fixed customs duty of 3 euros as of July 1, 2026, on small parcels under 150 euros entering the union through e-commerce. The regulation is of particular concern to online marketplaces that have grown with low-priced products, such as Shein, Temu and AliExpress.
According to the Council of the EU, the practice was introduced because the current duty-free entry system causes unfair competition for EU sellers, health and safety risks for consumers, high levels of fraud and environmental concerns.
New Customs Era for Small Parcels
The new practice stipulates that a 3-euro tax will be charged for each different product classification in shipments under 150 euros entering the EU. Accordingly, if a shipment contains three different types of products, the total fee may rise to 9 euros; while 3 euros will be applied to small parcels containing multiple products of the same type. It was stated that 5.8 billion e-commerce shipments under 150 euros entered the EU in 2025, while this figure was 1.4 billion in 2022.
Impact on E-Commerce Platforms and the Retail Sector
The regulation increases pressure on China-based low-cost e-commerce models. Dirk Gotink, who leads the customs reform issue in the European Parliament, said the customs exemption no longer makes sense under old trade conditions; and that e-commerce has changed the system, especially with shipments originating from China. Gotink also stated that the exemption was being used in a way that created a competitive advantage against EU businesses.
It Will Partially Reflect on Consumer Prices
The new costs are expected to be partially reflected in consumer prices. AliExpress announced that for applicable products, the information “customs duties and VAT are included in the price” will be displayed; while for other products, import costs will be presented to customers before payment.
Amazon stated that in 2025, 97 percent of its EU shipments were fulfilled from warehouses within the union; and that import fees for products coming from outside the EU would be displayed before payment. Shein, meanwhile, increased its warehouse capacity in Wroclaw, Poland, as part of its preparations for the change and moved toward sending more products to the EU through bulk shipments.
Decline Expected in Air Shipments
Experts forecast a decline of between 10 percent and 35 percent in e-commerce air shipments to the EU after the new fees come into force. In this process, retail and e-commerce companies are expected to reshape their pricing, warehouse management, cross-border logistics and AI-powered operational planning. (small parcels), (small parcels)