EU Targets Chinese E-Commerce Giants with New Package Tax to Curb Underselling
October 28, 2026
The EU has taken aim at the flood of small parcels, with about 5.9 billion packages in 2025 coming mainly from China, prompting a new package tax regime: 3 euros per product for items under 150 euros and a 2-euro processing fee that starts on November 1.
France rolled out a 3-euro forfaitary EU-wide duty for low-value shipments under 150 euros from July, replacing the national tax, and plans to add a second 2-euro levy per category, totaling 5 euros starting November 1, with customs controls strengthened since March to allow intervention after goods enter the country.
The moves are part of broader EU and French efforts to curb underselling and shield European consumers and businesses from perceived unfair competition linked to Chinese platforms.
Officials express cautious optimism about the policy’s effects, noting ongoing adjustments as platforms adapt logistics and investigations continue.
The policy targets competition from Chinese platforms such as Shein, Temu, and Alibaba, seen as Trojan horses for Beijing due to low prices and potential non-compliant products.
Experts emphasize the need for a coordinated European framework to curb platform-driven competition while ensuring product safety and fair trade across the bloc.
Actions followed a 2025 scandal involving alleged dangerous items on Shein, prompting suspension attempts in France and intensified inspections of Shein, Temu, and AliExpress.
Past incidents of problematic items have fueled calls for stricter regulation and a shift toward exemptions on customs for small parcels to reduce competition, environmental impact, counterfeits, and safety risks.
Critics warn higher costs could be passed to consumers and reduce access to affordable goods, while platforms may respond by expanding European logistics hubs, as seen with Shein’s platform activity in Poland.
France and the EU are pushing for greater platform accountability, including a potential EU Product Act that would require verification and could lead to suspensions for repeated failures.
An environmental angle accompanies the policy: an anti-fast-fashion penalty framework targets ultra-short-lived fashion items, with penalties up to 12 euros for a jacket and a ban on advertising these items starting January 1, 2027.
November 2025 inspections at Roissy airport found high levels of non-conformity in Shein shipments, though courts did not block the platform in France at that time.
Summary based on 4 sources