How the EU plans to crack down on low-value e-commerce goods from China
European finance ministers have agreed to advance import duties on low-value parcels next year to crack down on cheap Chinese e-commerce imports from online platforms such as Shein and Temu.
Here are details of Europe’s concerns about cheap e-commerce imports, and the actions the European Union is taking.
WHAT IS THE PROBLEM?
The EU has a “de minimis” import duty exemption for e-commerce packages arriving in the bloc with a value of less than 150 euros ($174).
Online platforms such as Shein, Temu, AliExpress and Amazon Haul deliver clothing, accessories and gadgets from Chinese factories directly to buyers at the lowest prices thanks to customs exemptions.
The number of low-value e-commerce packages entering the block doubled last year to 4.6 billion. More than 90% of them come from China, according to the Commission.
The EU executive estimates that around 65% of small parcels entering the EU are undervalued to avoid import duties.
This report also looks at the risk of loss to consumers due to products that do not meet requirements, environmental damage due to the delivery of products with a short shelf life, and losses to European Union industry, especially retailers, due to a surge in imports.
The United States scrapped a “de minimis” policy that allowed goods worth less than $800 duty-free to enter, raising concerns that cheap imports from China would divert more goods to Europe.
WHAT IS THE EU’S PLAN?
The EU is planning an overhaul of its customs system with the creation of an EU Customs Authority and an EU Customs Data Center to replace IT infrastructure in EU member states, saving up to 2 billion euros per year, according to the Commission, and enabling greater coordination.
The EU is a customs union, which means there are general tariffs on imports from non-member countries, and there are no tariffs on trade between EU countries. But each country has its own customs agency, and the bloc has 189 different customs IT systems, which is why a data center is needed, said Dutch lawmaker Dirk Gotink, who is overseeing European Parliament reforms.
The data center will have to work closely with European technology companies, given the sensitivity of the information.
“The data is essentially an MRI scan of the European economy and trade flows; this data is very sensitive and access to this data should be very tightly regulated,” Gotink told Reuters in an interview.
The rollout giving e-commerce companies access to data centers is only scheduled for 2028, the date when the current de minimis exemption of 150 euros will be abolished. For many people, this is too slow.
SHORT TERM FIX
The bloc wants to introduce “temporary simplified customs duties” on low-value e-commerce packages, possibly in November 2026. A single percentage-based duty on all these packages will be decided by finance ministers at a meeting on December 12.
The Commission has also proposed a handling fee of 2 euros for low-value e-commerce packages sent directly to consumers or 50 cents for packages handled by warehouses. The online retailer or importer will be responsible, and this is in addition to any temporary customs fees.
Handling charges will likely be implemented in November 2026, or earlier if a suitable IT solution can be found.
COUNTRIES RUSH FOR CUSTOMS AGENCY
Nine countries, including Belgium, France and the Netherlands submitted bids to host the new EU customs authority.
France has proposed the northern city of Lille as the host city, Belgium has proposed the air cargo hub Liege, and the Netherlands has proposed The Hague. Poland is fighting for Warsaw, which is already the headquarters of Europe’s border and coast guard agency Frontex.
Other locations the European Commission will consider are Rome, Porto, Malaga, Bucharest and Zagreb.
Source: Reuters
