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Europe’s New Parcel Duty Ends the Duty-Free Era

Brussels: The European Union has ended one of the internet economy’s quietest subsidies, and the change lands squarely on the parcel duty that cheap goods from outside the bloc never used to pay. Since 1 July 2026, every low-value item entering the EU now carries a flat charge, closing a loophole that shaped a decade of cross-border shopping.

The new parcel duty sets a fixed fee of three euros on each item in consignments worth up to 150 euros. Until now, those parcels crossed the border free of customs duty under the long-standing de minimis exemption. That exemption is gone.

The detail that matters most is the wording. The charge applies per item, not per parcel. A single package holding a phone case, a cable and a set of earbuds attracts three separate charges rather than one, turning a nine-euro bill on goods that recently arrived for nothing.

Why the numbers forced Brussels to act

The scale explains the urgency. Nearly 5.9 billion low-value items entered the EU from third countries in 2025 without paying a single euro in duty, roughly 12 million parcels a day. That figure runs more than four times the 1.4 billion recorded in 2022.

Most of that volume flows from a handful of Chinese platforms. Shein, Temu and AliExpress built direct-to-consumer models around the exemption, shipping individual orders straight from Chinese warehouses to European doorsteps. The old rules made that model cheaper than stocking goods inside Europe.

The Council agreed the measure in December 2025, and the Commission published the legal text and guidance in June 2026. The three-euro fee is temporary. It applies until 1 July 2028, after which standard customs duties, calculated by product type, take over.

Enforcement leans on data. From 1 November 2026, sellers must attach product identifiers to each consignment, though they can already do so voluntarily. Those identifiers let customs authorities screen for unsafe or non-compliant goods, an aim that sits alongside the revenue and fairness arguments.

What the duty changes for shoppers and sellers

Retailers based in Europe have argued for years that the exemption handed foreign rivals an unfair edge. A local shop pays duty and value-added tax on imported stock, while a parcel sent directly to a customer slipped through. The new charge narrows that gap, if not fully.

The platforms have already adapted. Shein, Temu and AliExpress have poured investment into European warehouse capacity, because orders shipped from within the bloc avoid the per-item charge entirely. The duty may therefore reshape supply chains more than it dents sales.

Consumers will feel the change unevenly. A single cheap item still costs little more, but baskets packed with several distinct products can watch the duty stack up fast. Analysts cited by European outlets doubt the fee alone will slow the giants.

The Commission frames the reform as a bridge to a wider customs overhaul that scraps the 150-euro threshold for good. The Council has signalled that the parcel duty is a first step, not the finished picture.

For now, Europe has priced a habit it once left free. Whether three euros per item changes what lands on the continent’s doorsteps, or merely where it ships from, will define the next two years of the parcel duty experiment.