THE WHAT? The European Union has agreed to introduce a temporary €3 levy on small e-commerce parcels in response to the surge in low-value imports, primarily from China.
THE DETAILS From July next year, parcels valued under €150 will face the interim charge, ahead of permanent customs duties planned for 2028 once a new EU customs data system is in place. The move follows the decision to scrap the long-standing duty-free threshold for low-value goods.
EU data shows shipments from China below €150 more than doubled year-on-year to 4.2 billion parcels in 2024, accounting for 91% of all such imports. France led the push for early action, citing unfair competition and regulatory concerns linked to platforms such as Shein and Temu.
THE WHY? For European cosmetics and personal care companies, the levy signals tighter enforcement on cross-border e-commerce that has pressured pricing while operating outside traditional tax and compliance frameworks.
Source: Bloomberg
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