EU closes the under-€150 duty exemption from July 1, ending the free ride for Temu, SHEIN and AliExpress

Summary

On July 1, 2026, the European Union abolishes the customs duty exemption that allowed parcels valued under €150 to enter the bloc from outside free of import duty. A flat €3 charge applies per distinct product type in each consignment, not per box, so a parcel containing three different items attracts a €9 bill. The temporary measure runs until July 1, 2028, when standard tariff rates take over. Chinese e-commerce giants China Temu, SHEIN and AliExpress built their European growth on the exemption; both Temu and SHEIN have been shifting inventory to EU-based warehouses for months ahead of the deadline, softening the immediate blow but raising their long-run cost structure.

Why it matters

The change removes a structural cost advantage that let Chinese platforms undercut European retailers on price while also bypassing the EU's product safety and chemical testing requirements. The March 2026 Customs Code reform, which reclassifies large marketplaces as "deemed importers," compounds the compliance exposure: sellers registered in the Import One-Stop Shop now face potential market bans for non-compliant goods, not just fines.

What to watch

• Whether the per-item duty calculation survives a legal challenge from the platforms.
• How quickly Temu and SHEIN complete their EU warehousing pivot and whether that eliminates their price advantage.
• The 2028 review, when normal customs duty rates will replace the flat €3 and the effective tariff could jump significantly.
• Whether the US follows with its own de minimis reform after ending the exemption for Chinese goods in 2025.