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EU agrees €3 small parcel tax on goods from outside bloc

Last year, 4.6 billion such small packages entered the European Union - with 91% originating in China
Last year, 4.6 billion such small packages entered the European Union - with 91% originating in China

EU finance ministers have agreed to impose a €3 duty on all small parcels imported into the bloc starting 1 July next year, to help tackle a flood of cheap imports by the likes of Shein and Temu.

The move comes a month after the bloc agreed to scrap a duty exemption for packages worth less than €150 imported directly to consumers in the 27-nation bloc, in many cases via Chinese-founded platforms.

The fixed fee will be introduced on a temporary basis and will stay in place until the bloc can settle on a permanent solution for taxing such imports, an EU spokesperson said.

Last year, 4.6 billion such small packages entered the European Union - more than 145 per second - with 91% originating in China. The EU expects those numbers to rise.

European retailers have said they face unfair competition from overseas platforms, such as AliExpress, Shein and Temu, which they claim do not often comply with the EU's stringent rules on products.

France has made the matter a priority, given that around 800 million such packages were shipped to the country last year, with strong domestic pressure to take action.

French Finance Minister Roland Lescure welcomed the flat tax as "a major victory for the European Union".

"Europe is taking concrete steps to protect its single market, its consumers and its sovereignty," he said.

The move comes as the EU strives to bolster the continent's competitiveness by making the lives of European businesses easier through slashing red tape.

Alongside ending the duty exemption, the EU executive in May proposed a small package handling fee worth €2.

EU member states have yet to agree on the level of that fee, but they are hoping it will apply from late 2026.