Taxation of small Chinese parcels: EU moves to practical implementation

Brussels (Belgium) - The principle has been agreed, yet practical details remain to be settled. The 27 member states must find a provisional solution on Friday to tax the mountains of small Chinese parcels imported into the European Union “as soon as possible” in 2026. This move comes without waiting for the initial deadline set for 2028.

Some 4.6 billion shipments with a value of less than 150 euros entered the European market in 2024. This equates to more than 145 every second. Of this total, 91 percent came from China. One month ago, European finance ministers approved the removal of the customs duty exemption benefiting these parcels starting next year.

While this measure applies to parcels from all countries outside the EU, it primarily aims to combat the influx of low-cost Chinese products into Europe. These items often fail to meet European standards and are purchased on Asian platforms such as Shein, Temu or AliExpress.

This influx of packages imported without any customs duties is increasingly denounced as a form of unfair competition by European producers and retailers.

Furthermore, the volume of parcels arriving at European airports and ports is so high that customs officers are frequently unable to check their compliance. Under these conditions, it is difficult to intercept dangerous or counterfeit products before they reach consumers.

“Four years ago, there was one billion parcels arriving from China. Today, it is more than four billion,” highlighted the French minister of the economy Roland Lescure.

“These parcels currently [represent] unfair competition compared to high street trade which pays taxes. It is therefore essential to act and to act quickly, otherwise we will act too late,” he explained to AFP.

Herculean tasks

France is currently in a standoff with the Chinese-founded e-commerce giant Shein following a scandal involving the sale of child-like sex dolls and category A weapons. The country has led this battle in Brussels to lift the customs duty exemption on these low-value shipments.

The measure was actually already planned within the framework of the Customs Union reform, but this was not due to apply until 2028.

In November, the 27 member states agreed to implement it “as soon as possible” in 2026.

However, this requires finding a “simple and provisional” solution to tax these billions of parcels. This interim measure is needed while waiting for the customs data platform planned in the reform to become operational, which is intended to greatly facilitate the collection of customs duties.

Applying the usual customs duties to small parcels from 2026 would be a Herculean task. Rates vary according to category grids or product sub-categories and import countries. Such a move risks further clogging up already overwhelmed customs services.

Lescure stated on Thursday that he would defend “a flat-rate tax, because we want the measures taken in Europe to have an impact”. He prefers this over a “proportional taxation” which, according to him, would not be sufficiently dissuasive.

First step

“Will it be January 1? Will it be April 1? We shall see. In any case, I want it to move very quickly in 2026,” added Lescure.

However, implementing a transitional system “is not simple, because we have to do it with our existing means,” noted a European diplomat who refused to speculate on the entry into force date of the provisional mechanism.

The taxation of small parcels is only a first step in an EU offensive against the avalanche of Chinese products entering its territory. It is expected to be accompanied by the introduction of processing fees on these same parcels worth less than 150 euros from November 2026. Brussels proposed in May to set these at two euros per package.

This sum will help finance the development of controls. According to the EU, along with the collection of customs duties, it will contribute to rebalancing the rules of the game between European products and “made in China” competition.

This article was translated to English using an AI tool.

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