With the arrival of the new year, the customs exemption for packages valued under 150 euros is being abolished at EU level, bringing changes to the sales system used by corporate platforms like Temu, Shein, Banggood, Trendyol, etc. As decided on Thursday (13/11) by the Council of EU Finance Ministers (ECOFIN), all packages from third countries will now go through normal customs procedures, with the imposition of duties and prescribed handling fees.
Greece strongly supports this measure, with Finance Minister Kyriakos Pierrakakis considering it necessary for fair competition, revenue protection, and product safety.
New rules for tax-free small packages in 2026: What changes for Temu, Shein, e-shops and consumers
As a result, businesses and consumers are now weighing the pros and cons of these new developments. For Greece, supporting and accelerating this measure is driven by the need for a policy that balances consumer interests, domestic trade, and protection of public revenues, ending distortions, “loopholes” and “backdoors” that emerged with the explosion of global e-commerce over the past 2-3 decades.
The “pros” include reducing unfair competition from foreign businesses, increasing public revenues, preventing the shipment of unsuitable products that don’t comply with European standards, and environmental benefits from discouraging production and overconsumption of questionable quality items and materials.
The “cons” include price increases on “very cheap” products from third countries due to duties and processing fees flooding Europe, potential burden on lower incomes that “chase” low prices, risk of delays and bureaucracy in customs processing, new costs and procedures for express/postal/customs services, and the need for careful and balanced planning in imposing “handling fees” per package (at least 1.5-2 euros and above according to current proposals).
What ECOFIN decided
EU Finance Ministers agreed last Thursday to abolish customs duty exemptions for low-value packages, accelerating the implementation timeline (from 2028 to early 2026) with a transitional “simple” solution so all packages enter customs and duty procedures. In two years, from 2028, stricter measures will be taken with a new directive revision, based on a new platform for electronic clearance of every purchase from third-country e-shops imported to the EU.
Member states will present specific implementation proposals for approval at the next ECOFIN in less than a month (by 12/12) aiming for a new architecture for small package imports from China and third countries, which will operate “as soon as possible” within 2026, in a way that doesn’t cause additional delays and problems at customs from the volume of small packages that would accumulate, while today they pass “duty-free”.
What changes for consumers
Every package from a third country will be assessed for duties regardless of value (beyond VAT already applied and imposed at purchase time by platforms via IOSS/checkout) resulting in final prices becoming higher and less attractive than today’s “cheap” packages.
Besides duties, the plan provides for a separate “handling fee” per small package, approximately 2 euros according to the prevailing proposal, as a low nominal value charge that may take effect after mid-2026 – though the final amount and plan remains to be politically locked in.
How Temu, Shein, Trendyol are affected
The sales system used by corporate platforms like Temu, Shein, Banggood, Trendyol, etc. (and similar purchases via eBay) is targeted, with their ultra-low prices and free worldwide shipping as main attractions.
For years this model relied largely on the low exemption threshold from EU Customs for purchases up to 150 euros (“de minimis”). Additionally, this threshold allowed under-pricing by foreign companies or “splitting” orders by buyers to avoid the set limit.
From the coming months however, these purchases will be burdened with duties and fees, limiting the final price advantage over European retailers or potentially changing free shipping and return policies for these products by foreign companies.
The transition to full customs control regime may bring delays and problems at Customs, requiring adaptation and timely upgrading of customs information systems, while also increasing platforms’ operational costs.
What changes for e-shops
For Greek and European e-shops, the playing field changes and becomes more level with their Eastern competitors, as directly imported cheap packages won’t escape duties, limiting pricing differences with European platforms that pay full duties and comply with strict quality and manufacturing standards.
Our country serves as a gateway for Chinese products to the EU and led alongside France in accelerating these measures, responding to fair competition issues that Greek and European businesses and e-shops have against direct sales platforms that exploited the current exemption.
Why the regime is changing
The explosive increase in small packages from third-country platforms (like Temu and Shein) has caused losses to member states, not only because European businesses are affected, but because it combines with under-invoicing and circumventions, leading to revenue losses and competition distortion at the expense of state revenues and European retail and industry.
The EU seeks level playing fields, better compliance and product safety control, and discouraging “fast fashion” practices that inflate environmental footprint and bypass European rules.
Commission President Ursula von der Leyen emphasized that “from now on, all packages will go through usual customs procedures” ensuring “fair competition and better consumer protection,” with commitment to support member states with immediate transitional measures.
“We’re not asking to close Europe’s door to international trade, but to close the ‘backdoor’ of unfair competition. The basic ‘misspelling’ that must change immediately is the de minimis regulation,” emphasizes the president of the Hellenic Confederation of Commerce and Entrepreneurship (ESEE), Stavros Kafounis.
Finance Minister Kyriakos Pierrakakis stated that “Greece fully supports the measure,” requesting implementation from early 2026.
EU officials note that up to two-thirds of small packages are declared under-valued, something that will only be addressed by abolishing the exemption and stricter enforcement.
Source: ANA-MPA
