The European Union is set to end the €150 duty-free exemption for inbound parcels, a move aimed at curbing the flow of low-value goods from e-commerce platforms such as Temu, Shein, and AliExpress, according to a report by Inside Retail Asia.
EU officials stated that the exemption has been "abused and misused on an industrial scale," allowing these platforms to flood the market with cheap goods without paying import duties. The policy change is expected to level the playing field for local retailers and generate additional revenue for member states.
The move could have significant ripple effects for cross-border e-commerce, particularly for Asian sellers who rely on the EU market. Temu, Shein, and AliExpress have grown rapidly by shipping low-cost items directly to consumers, often bypassing traditional retail channels. The new tax regime may force these platforms to adjust pricing or logistics strategies.