From the first of July, small parcels from outside the EU with a value of less than 150 euros will be subject to a 3-euro duty per product category upon entry into the European Union. They say this is the best solution to stem the flood of Chinese parcels. But is this really the way to tackle the most rampant forms of fast fashion?
by Massimiliano Viti
From the first of July, parcels from outside the EU with a value of less than €150 will be subject to a duty of €3 per product category upon entry into the European Union. If a parcel contains products with four different customs codes, the duty applied to the single parcel is 12 euros. Is this the best solution to stem the tide of Chinese parcels, or will the measure join the list of remedies that cause more harm than the disease itself?
A level playing field
Just a few weeks after it came into force, the tax already seems to have been passed on to European consumers, as e-commerce platforms have adapted and adjusted their prices. According to Brussels, the tax is intended to curb the rise in imports from China. Even though the measure affects all non-EU countries, including the UK. The number of low-value parcels entering the European Union has, in fact, risen from 1.3 billion in 2022 to 5.9 billion in 2025. Around 90 per cent come from China, given the rapid growth of online platforms such as Shein and Temu. The duty also aims to ensure a level playing field with European retailers.
Competitive gap
Now, with the new duty, the competitive advantage of online platforms is expected to have diminished. European businesses had complained about having to comply with EU regulations, whilst many products arriving from abroad via this flood of parcels failed to meet European standards, including safety standards. In this regard, The Guardian cites dietary supplements: almost two in three products from outside the EU fail public health and safety tests. The same applies to professional personal protective equipment: 60 per cent does not comply with EU regulations.
Analysts’ doubts
However, several analysts have expressed doubts about the measure’s effectiveness. Firstly, because the prices of products sold by online platforms are so low that a €3 price hike is unlikely to deter purchases. It is no coincidence that Shein has already taken countermeasures. For example: it has opened several pop-up shops in Hungary, attempted to open a permanent shop in Paris and expanded a huge distribution centre in Poland. It will likely explore other options to try to mitigate or limit the impact of the duty, such as absorbing part of the costs by adjusting the thresholds for free delivery. Although the simplest countermeasure remains raising prices and passing the tax on to European households.
The countermeasures
The European Commission has been emphasising quite strongly, including on social media, that European citizens will not pay anything extra, as the duty will be paid by the platforms and retailers. This is true only in theory, because in practice, from the very days following the duty’s entry into force, the price lists of Shein, Temu and other major Chinese marketplaces have changed. Products priced at less than 4 euros have virtually disappeared from the range. Furthermore, rather than increasing the total amount charged to the customer by 3 euros, many retailers have opted to simplify the process by increasing the price of each individual product by 3 euros. Consequently, a purchase of three products at 2 euros each – which would have amounted to a total order value of 9 euros, including the duty – now comes to 15 euros.
Taxing the damage
From an environmental perspective, the criticism is quite fierce and highlights how European law imposes a penalty but does not oblige companies to reduce their environmental impact or to produce fewer garments. In other words: a cost is attributed to the damage, but it does not prevent it, thereby allowing the production model to survive. This means that the challenge of overproduction – the main issue in the fashion sector – remains unresolved.
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