Starting in July, the European Union (EU) introduced new customs rules for ‘low-value’ imports. Intended to target the high volume of shipments from fast fashion and cheap foreign goods, the new duty has significant implications.
The rise of sites like Temu and Shein has seen a substantial increase in the volume of smaller shipments being imported to Europe. Operating as a direct link between factories in China and consumers around the world, these sites are able to sell goods at a fraction of the cost of local equivalents.
Temu, for example, is an online marketplace for third-party sellers. Just about every type of product and good manufactured in China can be found on the platform. With no ‘middlemen’, the goods are shipped to the consumer, keeping prices as low as possible. Equally, Shein operates as a fast fashion brand, using a network of suppliers to immediately deliver on trends while offering absurdly low prices and quickly scaling to meet specific demand.
However, new import changes may affect the European growth of these online behemoths…
New EU ‘de minimis’ rule: What has changed?
Previously, the EU operated with a ‘de minimis’ threshold of €150, meaning that goods below this value were exempt from import duty. This has now been scrapped, with a new system put in place. The new rule change targets business-to-consumer shipments, including those below the previous €150 threshold.
From the 1st of July 2026, a flat €3 duty applies to each line of the customs import declaration. Additional data is also required, with the introduction of Product Identifiers for all business-to-consumer goods, regardless of value. The EU also plans to introduce a €2 ‘handling fee’ for each declaration line from November 2026. While the changes themselves are relatively minor, the cumulative effect will be immense. For reference, the EU received 5.9 billion de minimis shipments in 2025.1
How it will affect the Chinese B2C model
The introduction of these new duties will have an impact on the attraction of fast fashion and low-cost goods imported under the current business-to-consumer model. For example, a shopper buying from Shein may only be paying €7-13 per item, but each declaration line will soon carry a total additional cost of €5. So, a theoretical shipment of 6 items (average cost of €10/item) will cost €60 plus €30 in duties, a 50% increase in cost to the consumer.
Managing reputation during regulation shifts
For businesses impacted by these changes, clear and consistent communication will be fundamental to customer education and long-term retention. With experience in supporting shipping and logistics companies, the team at CWA understand the challenges around international freight and evolving customs regulations. If you are interested in reputation management and effective communication strategies during periods of regulatory transition, our team have the solutions. Get in touch to learn more.
Emma Jackson – Account Director, CWA
1 https://taxation-customs.ec.europa.eu/news/guidance-and-legal-text-temporary-flat-fee-low-value-imports-which-will-apply-until-1-july-2028-2026-06-08_en
