EU agrees to impose $4.50 small parcel tax to tackle China’s flood of cheap imports

BRUSSELS – European Union finance ministers agreed on Nov 12 to impose a €3 (S$4.50) duty on all small parcels imported into the bloc starting on July 1, 2026, to help tackle a flood of cheap imports by the likes of Shein and Temu.

The move comes a month after EU agreed to scrap a duty exemption for packages worth less than €150 imported directly to consumers in the 27-nation bloc, in many cases via Chinese-founded platforms.

The fixed fee will be introduced on a temporary basis and will stay in place until the bloc can settle on a permanent solution for taxing such imports, an EU spokesperson said.

In 2024, 4.6 billion such small packages entered EU – more than 145 per second – with 91 per cent originating in China.

EU expects those numbers to rise.

European retailers argue they face unfair competition from overseas platforms, such as AliExpress, Shein and Temu, which they claim do not often comply with EU’s stringent rules on products.

Key EU power France has made the matter a priority, given the around 800 million of such packages shipped to the country in 2024 and strong domestic pressure to take action.

French Finance Minister Roland Lescure welcomed the flat tax as “a major victory for the European Union”. “Europe is taking concrete steps to protect its single market, its consumers and its sovereignty,” he said.

The move comes as EU strives to bolster the continent’s competitiveness by making things easier for European businesses through slashing red tape. Alongside ending the duty exemption, EU in May proposed a small package handling fee worth €2. EU member states have yet to agree on the level of that fee, but hope it will apply from late 2026. AFP