EU Bids Farewell to ‘De Minimis’ in July: €3 Flat Fee on Small Shipments Enforced

Europe makes a move to stop Shein and Temu. The Council of the European Union (EU) has approved on Tuesday the application of a fixed tariff of €3 to small value packages, less than €150, entering the community block through e-commerce. The measure will come into force on July 1st, 2026.

The decision of the European authorities responds to concerns about the “unfair competition” faced by European sellers against goods that currently enter duty-free. They point to “health and safety risks” for consumers, “high levels of fraud” and the “environmental impacts associated” with this type of product.

The new levy will apply to all goods imported in small shipments whose non-EU seller is registered in the EU’s VAT one-stop shop (IOSS) system, which accounts for approximately 93% of ecommerce flows into the bloc.

According to the Council, the measure is temporary and will be in place until the final agreement to completely remove the duty-free threshold for parcels under €150 comes into force. Once implemented, all goods under that value will be subject to normal EU tariffs according to their category.

The EU will apply a flat tariff of three euros to parcels valued below €150, entering the EU bloc through ecommerce

The EU executive will periodically monitor the application of the tariff and assess whether it is necessary to extend it to products sent by sellers not registered in the IOSS, thus extending the scope of the measure.

The initiative differs from the handling fee, which is still under discussion within the customs reform package and the multiannual financial framework, and which seeks to modernize import procedures in the EU.

For the fashion and retail sector, this measure could impact small-value cross-border purchases, especially those of clothing and accessories bought on ecommerce platforms outside the EU, where European consumers have until now been exempt from tariffs.

Experts say the measure seeks to level the playing field for European retailers, incentivize domestic trade and reduce the risks associated with the exponential increase in cross-border e-commerce, marking a significant change in EU tariff policy for small shipments.