European finance ministers have agreed to accelerate the introduction of customs duties on low-value parcels as the EU steps up efforts to curb a flood of cheap imports from fast-growing Chinese e-commerce platforms such as Shein and Temu. The decision, expected to take effect next year, is part of a broader push to strengthen customs enforcement and protect European consumers, industries, and supply chains.
The shift comes amid mounting concerns within the bloc about the sheer volume of low-priced goods entering Europe. Under the EU’s current “de minimis” exemption, packages valued at under €150 enter duty-free. This has enabled online retailers shipping directly from Chinese factories to offer ultra-low prices that European competitors struggle to match. The number of such parcels doubled in 2023 to 4.6 billion, with more than 90% originating from China, according to European Commission data. Officials estimate that around 65% of these shipments are undervalued—intentionally or otherwise—to bypass customs duties altogether.
EU regulators say the surge raises multiple red flags: the risk of consumer harm from non-compliant goods, environmental strain from short-lifespan products shipped long distances, and competitive pressure on European retailers already struggling with rising operating costs. Similar concerns drove the United States to end its own de minimis exemption for parcels under $800, prompting fears of even greater diversion of cheap imports into Europe.
As part of a long-term solution, the EU is pushing an ambitious reform of its customs architecture. Central to this is the creation of a European Customs Authority and a unified EU Customs Data Hub, intended to replace the fragmented patchwork of 189 national IT systems currently in use. Lawmakers describe the future data hub as highly sensitive infrastructure—effectively a real-time economic map of trade flows that must be tightly safeguarded and handled by European tech firms only.
Although the full rollout linking e-commerce companies to the new data hub is currently scheduled for 2028—when the de minimis exemption is due to be abolished—many policymakers argue the timeline is too slow given the scale of the problem.
In the meantime, the bloc is preparing short-term measures. These include a single percentage-based temporary customs fee on all low-value parcels, which finance ministers are expected to finalise at a Dec. 12 meeting. The European Commission has also proposed a handling fee—€2 for direct-to-consumer parcels and €0.50 for those processed via warehouses—likely to take effect in November 2026, or earlier if technical systems allow.
With reforms gaining momentum, EU member states are also positioning themselves to host the incoming customs authority. France has nominated Lille, while Poland is pushing for Warsaw, already home to the EU’s Frontex border agency. Portugal has proposed Porto. A final decision is expected after bids close on Nov. 27.
The accelerated actions underscore a growing consensus in Europe: the era of unchecked low-value imports may be coming to an end as the bloc seeks to tighten compliance, level the playing field for domestic businesses, and modernise its customs system for a new era of global trade.