EU Scraps €150 Duty Free Threshold to Target Shein and Temu Parcels in 2026

New EU customs rules are set to push up the true cost of ultra cheap parcels from Shein and Temu from 2026, directly targeting the low value shipments that have powered their growth across the bloc. Finance ministers have agreed to scrap the long standing €150 duty free threshold and introduce new per parcel charges, ending the tax free treatment that many Chinese fast fashion orders currently enjoy.

What is changing from 2026

From as soon as possible in 2026, all non EU parcels will face customs duties regardless of value, rather than slipping in duty free under €150. A temporary flat customs charge of about €3 per low value shipment is expected as a bridge measure until a fuller reform takes effect in 2028.

Alongside this, EU institutions are considering an additional handling fee of roughly €2 per small parcel to cover processing costs at customs. Together, these fees could add around €5 to each budget order, a meaningful uplift on items that often cost under €10 to 15.

Why Shein and Temu are in the crosshairs

Platforms like Shein and Temu ship millions of ultra low priced items directly from China to EU consumers, frequently declaring values under €150 and taking advantage of the de minimis exemption. EU governments and local retailers argue this has created an uneven playing field, with domestic brands paying duties, higher labor costs, and stricter product safety compliance while being undercut on price.

Officials have also flagged concerns about product safety, fraud and environmental impact from the sheer volume of short lifecycle goods entering the bloc. The new duties are framed as a way to enforce checks more consistently and discourage ultra fast overconsumption rather than an outright ban.

Customs and Fast Fashion Crackdown

The duty changes are an early outcome of the EU’s broader customs reform, which aims to build a more digital, data driven system and phase in an EU Customs Authority and data hub by 2028. By pulling implementation forward from 2028 to 2026, ministers responded to pressure from member states such as France, which is also considering its own €2 fast fashion import tax and possible extra environmental levies of around €5 per item.

The European Commission says removing the exemption should help protect EU industry competitiveness, improve consumer protection and support climate goals, while still keeping cross border e‑commerce functioning. Other markets, including the United States, have moved in a similar direction by tightening their own de minimis rules on low value imports from China.

What this means for shoppers and brands

For EU shoppers, the headline change is that cheap Shein and Temu parcels will no longer arrive with zero customs duty; final prices are likely to rise once flat duties and handling fees are layered on. Some platforms may choose to absorb part of the increase, consolidate shipments or adjust sourcing strategies, but the era of structurally subsidised ultra low cost imports is being actively squeezed.

For European brands and retailers, the move should narrow the price gap slightly and make competition with ultra fast fashion players less lopsided, even if it doesn’t eliminate their scale advantage overnight. The next few seasons will show whether higher landed costs materially slow order volumes from these platforms or simply push them to retool around the new rules.