The European Union has officially abolished its long-standing duty exemption for low-value imports, a move that is expected to significantly alter the operating model of Chinese cross-border e-commerce sellers and accelerate the industry’s shift toward localized fulfillment across Europe.
Under Regulation 2026/382, which took effect on July 1, parcels valued below €150 no longer qualify for duty-free entry into the EU. The policy ends a system that had been in place for more than three decades and supported the rapid growth of direct-to-consumer cross-border commerce between China and European markets.
During a transition period running through July 2028, the EU will impose a fixed €3 duty per Harmonized System code on imported parcels. Beginning in November, direct-mail shipments will also be subject to an additional €2 customs clearance fee. By comparison, products already stored in European warehouses will face a substantially lower charge of €0.50, creating a clear incentive for overseas sellers to localize inventory and distribution operations.
The policy change comes as European authorities seek to manage the growing volume of low-value imports entering the bloc. According to European Commission customs data, approximately 46 billion low-value parcels entered the EU in 2024, with 91% originating from China.
The previous exemption played a critical role in the rise of platforms such as SHEIN, Temu, and AliExpress. By shipping products directly from factories in China to individual consumers in Europe, these companies were able to minimize inventory risk, maintain lean operating structures, and offer highly competitive prices.
The removal of the exemption significantly changes those economics. Industry estimates suggest the new measures could increase logistics and customs-related costs by €5 to €8 per parcel. For many low-priced products, particularly in categories such as apparel and accessories, the additional charges could materially reduce profit margins and weaken one of the key advantages that fueled cross-border direct-mail growth.
As a result, the regulation is expected to accelerate an ongoing transition toward local warehousing and regional fulfillment networks. Major Chinese logistics and e-commerce players have already begun preparing for this shift. Companies including Cainiao, JD Logistics, and Zongteng Group have expanded their warehouse presence across Europe, while SHEIN has been testing localized fulfillment operations in markets such as Poland and Turkey.
The EU’s approach sends a clear signal about the future direction of cross-border trade. Rather than relying on millions of individual international parcels, policymakers are encouraging overseas merchants to establish more permanent logistics infrastructure within Europe, improving customs oversight while supporting faster and more predictable delivery services.
For China’s cross-border e-commerce sector, the regulation marks an important turning point. The industry’s first phase of globalization was driven by manufacturing efficiency, low-cost international shipping, and favorable regulatory conditions that enabled products to move directly from Chinese factories to overseas consumers.
The next phase is likely to look very different. Success will increasingly depend on localized supply chains, overseas warehouse networks, tax and regulatory compliance capabilities, and the ability to build stronger brand recognition in international markets.
The transition may prove challenging for smaller merchants that remain heavily dependent on direct shipping from China. However, companies that have already invested in European infrastructure could gain a competitive advantage as the new rules take effect.
Beyond its immediate impact on parcel costs, the EU’s decision reflects a broader shift in global trade regulation. As governments tighten oversight of cross-border e-commerce, Chinese companies are being pushed to move beyond cost-driven expansion strategies and develop more sustainable, localized operating models.
For an industry that has grown rapidly over the past decade, July 1 may ultimately be remembered not simply as the day a duty exemption disappeared, but as the moment China’s cross-border e-commerce sector entered a new stage of globalization.