Effective July 1, 2026, the European Union will eliminate duty exemptions for imported goods valued up to €150, a move that has prompted Chinese e-commerce platforms to transfer part of their logistics operations to the EU. This shift poses new challenges for domestic logistics companies, which will face increased competition.
The new regulations are part of a broader reform of the EU’s customs system, affecting millions of consumers and thousands of import businesses. Chinese trading platforms have quickly adapted by relocating operations within the EU.
Understanding the New Flat Fee Structure
During the transition period, the EU has introduced a simplified customs fee of €3 for each product category in a shipment.
This means that a single purchase of three identical items, like three t-shirts, constitutes one tariff category, resulting in a €3 customs fee. However, if the same shipment contains three different products, such as a t-shirt, a charger, and glasses, it falls into three tariff categories, leading to a fee of €9. It’s important to note that this flat fee does not replace VAT, which is still charged separately.
Natalia Stanowska-Potoczny, a legal advisor at Causa Finita Szczepanek and Partners, highlights that while the new regulations aim to simplify the customs process, they also alter the competitive landscape in e-commerce, particularly for non-EU platforms.
The decision to eliminate exemptions was justified by the need to level the playing field between EU businesses and sellers outside the Union. Previously, sellers from countries like China and Turkey could offer goods without customs duties, benefiting from lower production costs due to cheaper energy and labor.
Additionally, there have been numerous incidents of undervaluing shipments or splitting orders into smaller packages to evade duties.
Initial Impact of the New Regulations
In the weeks following the implementation of the new rules, there has already been a notable decrease in the number of shipments entering the EU. Logistics companies reported a roughly 20% decline in packages from China, which could amount to a billion fewer shipments annually.
This new fee has dissuaded consumers from ordering cheap items, such as cables or cases, where the €3 charge often exceeds the product’s value. Consequently, some demand has shifted to European e-commerce platforms like Allegro and Amazon EU, as well as local distributors. Products available locally have become more competitively priced and offer faster delivery without additional customs charges.
Chinese Platforms Adapt to New Rules
Chinese e-commerce giants, including AliExpress, Shein, and Temu, have swiftly devised strategies to navigate the new regulations. One method involves establishing warehouses within the EU, known as EU Warehouses. Goods are imported in bulk, cleared collectively at the border, and then shipped to customers from warehouses in Poland or Germany as intra-community transactions.
An example of such investment is Shein’s logistics center near Wrocław, covering 740,000 square meters and expected to employ up to 5,000 people. This model enables companies to reduce customs costs per item while also shortening delivery times and simplifying order fulfillment.
E-commerce platforms are also employing other strategies, such as consolidating orders or raising thresholds for free shipping, which allows them to spread the customs fee across a larger number of products.
What Lies Ahead for Consumers and Businesses in November?
The customs reform is just beginning. The European Commission has proposed introducing an additional fee for handling low-value shipments across the EU by November 1, 2026. The exact amount will be determined in a separate delegated act, based on the minimum costs incurred by customs authorities when processing such goods. This means that starting in November, consumers and platforms should expect not only the €3 customs fee per product category but also an additional administrative fee added to each low-value shipment.
From November 1, 2026, customs declarations will require the use of product identifiers (PID) to aid in accurately tracking goods and detecting discrepancies. Furthermore, the European Commission plans to introduce a new administrative fee for handling low-value shipments.
Beginning in 2028, the flat €3 fee will be replaced by the standard Common Customs Tariff, meaning that duties will be calculated individually based on the type and value of goods. Ultimately, the reform aims to include digital reporting of transactions and expand OSS procedures to cover additional transaction types.
The European Union is working towards creating a comprehensive digital customs and tax settlement system, ready to address future challenges in global e-commerce. As emphasized by Natalia Stanowska-Potoczny, the €3 fee marks only the start of much broader changes that could entirely transform the rules governing imports from outside the EU in the coming years.
