Europe

Europe's New €3 Import Tax on Small Parcels Explained

Starting July 1, the European Union is imposing a €3 customs duty on low-value parcels entering from outside the bloc. Targeting platforms like Temu, Shein, and AliExpress, the levy aims to curb the influx of billions of duty-free shipments and level the playing field for local European retailers.

Europe's New €3 Import Tax on Small Parcels Explained

Last year, 4.6 billion small parcels valued under €150 entered the EU, with 91 percent originating from China. Under the new rules, the €3 charge applies per product category within a single shipment. An order containing three identical T-shirts incurs one €3 fee, while a package with a T-shirt, shoes, and shampoo triggers a €9 charge. While the tax is technically levied on sellers, companies may pass the cost to consumers or absorb the expense to remain competitive.

Some retailers are already pivoting by shipping goods in bulk to internal EU warehouses, bypassing the duty by treating subsequent deliveries as domestic shipments. While the tax provides a modest boost to European competitiveness, its primary function is to offset the administrative burden on customs authorities. With billions of parcels processed annually, the revenue could exceed €13.8 billion. This measure remains a stopgap, as the EU prepares a more comprehensive tariff overhaul scheduled for 2028.

Comments

Comments (0)

Leave a comment

No comments yet. Be the first!