Finance ministers from the EU’s 27 member states agreed on Friday to impose a flat 3 euro ($3.52) tariff on low-value e-commerce parcels entering the bloc, a move aimed at curbing what officials describe as unfair competition and safety risks posed by ultra-cheap imports mainly from China.

The measure, set to take effect on July 1, 2026, will apply to parcels valued below 150 euros ($176), particularly those sold by non-EU merchants registered under the EU’s Import One-Stop Shop (IOSS) value-added tax system. EU officials say this encompasses 93 percent of all e-commerce flows to the EU.

“We ensure that duties are paid from the first euro, creating a level playing field for European businesses and limiting the influx of low-cost goods,” said Stephanie Lose, the Danish minister for economic affairs.

The decision targets a surge in small parcels shipped directly to European consumers by platforms such as Shein, Temu, AliExpress, and Amazon Haul, which source goods from Chinese factories and sell them at ultra-low prices.

Closing a Loophole in Customs Rules

Under the IOSS system, online purchases in the EU valued under 150 euros can currently enter the bloc duty-free.

This exemption has fueled a sharp rise in imports. Last year, the number of low-value e-commerce parcels entering the EU doubled to about 4.6 billion, with more than 90 percent originating from China, according to EU customs data.

In a statement, the Council of the European Union said the new tariff is meant to address “unfair competition for EU sellers, health and safety risks for consumers, high levels of fraud and environmental concerns” linked to duty-free entry.

Brussels had originally planned to eliminate the 150 euro customs duty relief in 2028 as part of a broader overhaul of the EU customs system. However, growing concerns over the dumping of Chinese goods in European markets prompted calls from member states to act sooner.

Temporary Measure Ahead of Permanent Reform

Under the agreement, the 3 euro flat tariff will remain in place until a permanent solution—namely the full removal of the duty-free threshold for goods under 150 euros—takes effect. EU officials said that reform was negotiated in November 2025 and would subject all low-value goods to standard EU tariffs applied on a per-item basis once implemented.

Separately, EU policymakers are also discussing a proposed 2 euro “handling fee” on small parcels, though no implementation date has been set.

The measures align with a broader push by the EU, the United States, and other major economies to tighten scrutiny of cross-border e-commerce and rein in the rapid expansion of low-cost imports from China.

Li Yan contributed to this report.