### EU Moves to Impose Customs Duties on Low-Value Imports Amidst Surge of Cheap Goods The European Union (EU) is set to implement new customs duties on low-value parcels imported from outside the bloc, particularly targeting inexpensive goods from Chinese e-commerce platforms like Shein and Temu. This decision follows a meeting of EU finance ministers in Brussels, where a majority voted to eliminate the current exemption threshold of €150 for customs duties on such imports. The change aims to address the increasing influx of cheap goods flooding the EU market, which has raised concerns among local businesses and policymakers about fair competition and market integrity. The new regulations are expected to take effect as early as 2026, two years ahead of the previously planned timeline of 2028 [https://www.bluewin.ch/en/news/in-future-cheap-goods-will-also-be-subject-to-customs-duties-when-imported-into-the-eu-2961699.html, https://www.channelnewsasia.com/world/eu-states-back-small-parcel-duties-tackle-china-import-flood-5464791.html]. ### Breakdown of the EU's New Customs Duty Structure 1. **Elimination of Duty Exemption**: The EU will abolish the €150 exemption for low-value parcels, meaning all imports will be subject to customs duties regardless of their value [https://www.marketscreener.com/news/eu-to-impose-customs-duties-on-small-parcels-in-2026-in-hit-to-china-s-shein-temu-ce7d5fdcd18df42d.html]. 2. **Targeting Chinese E-commerce**: The primary focus of this initiative is to regulate imports from major Chinese retailers like Shein and Temu, which have been criticized for flooding the EU market with low-cost products [https://www.devdiscourse.com/article/business/3696677-european-union-challenges-cheap-chinese-imports-with-new-customs-legislation]. 3. **Implementation Timeline**: The new customs duties are expected to be implemented in 2026, accelerating the original plan set for 2028 [https://www.nltimes.nl/2025/11/13/eu-end-duty-free-imports-2026-amid-surge-cheap-goods-china]. 4. **Support from Member States**: The decision has garnered support from various EU member states, including France, indicating a collective effort to protect local businesses from the adverse effects of cheap imports [https://www.legit.ng/business-economy/economy/1683192-eu-backs-small-parcel-duties-tackle-china-import-flood]. ### Supporting Evidence and Data - **Current Exemption**: The existing threshold allows packages valued under €150 to enter the EU without incurring customs duties, which has been a significant factor in the rise of low-cost imports [https://www.indexbox.io/blog/eu-to-end-duty-free-status-for-small-parcel-imports-in-2028]. - **Projected Impact**: The EU's decision is anticipated to significantly affect the business models of companies like Shein and Temu, which rely on low-cost shipping to attract European consumers [https://www.businesstimes.com.sg/international/global/eu-targets-china-imports-urging-small-parcel-fee-2026]. ### Conclusion: Implications of the New Customs Duties The EU's decision to impose customs duties on low-value imports marks a significant shift in trade policy aimed at curbing the influx of cheap goods from China. 1. **Protection of Local Markets**: By eliminating the duty exemption, the EU aims to level the playing field for local businesses that struggle to compete with low-cost imports [https://www.ekathimerini.com/economy/1286653/eu-seeks-faster-crackdown-on-china-parcels-that-could-hit-shein-temu]. 2. **Economic Strategy**: This move reflects a broader economic strategy to safeguard European industries and promote fair competition within the single market [https://www.marketscreener.com/news/eu-ministers-agree-faster-crackdown-on-china-parcels-that-could-hit-shein-temu-ce7d5fddd98ff426]. 3. **Future Trade Dynamics**: As the EU prepares for these changes, businesses and consumers alike will need to adapt to the new customs landscape, which could reshape the dynamics of e-commerce in Europe [https://bitcoinethereumnews.com/finance/eu-looks-to-stop-tax-free-rule-on-packages-under-150-euros-starting-in-2026-shein-and-temu-could-take-a-hit]. In summary, the EU's decision to impose customs duties on low-value imports is a strategic response to the challenges posed by cheap Chinese goods, aiming to protect local economies and ensure fair competition in the marketplace.