The European Union is moving to eliminate the €150 duty-free threshold for inbound parcels, a change that would directly challenge fast-growing e-commerce platforms such as Temu, Shein, and AliExpress, according to Inside Retail Asia.
The current exemption, designed for personal shipments, has been exploited at an industrial scale by online retailers shipping millions of low-cost items daily, avoiding customs duties and value-added tax. EU officials argue that the loophole has given foreign platforms an unfair price advantage over domestic merchants and cost member states billions in uncollected revenue.
If implemented, the policy would raise prices for consumers who rely on ultra-cheap goods from these marketplaces, potentially reshaping the competitive landscape for cross-border e-commerce. The proposal is part of a broader EU customs reform package and must still pass through the European Parliament and Council before taking effect.