Brussels Aims to Accelerate Crackdown on Cheap Chinese Parcels

The European Commission is moving to close loopholes that allow millions of low-value Chinese parcels to flood into the bloc each year, often slipping through customs unchecked and untaxed. The push, announced this week in Brussels, forms part of a wider effort to level the playing field for European retailers and manufacturers who say they are being undercut by a deluge of ultra-cheap imports from e-commerce giants such as Temu, Shein, and AliExpress.

At the heart of the issue lies the EU’s long-standing de minimis rule, which exempts goods valued at less than €150 from customs duties. Initially designed to ease administrative burdens on small shipments, it has been exploited by exporters—particularly in China—who underdeclare the value of their products to avoid taxation and scrutiny. According to customs officials, the result has been a tidal wave of micro-parcels, many falsely listed as gifts or priced below €10.

A Growing Economic and Political Issue

The scale of the problem is staggering. The Commission estimates that more than one billion small parcels arrived in the EU last year from non-EU countries, a large proportion of them from Chinese online platforms. Many of these shipments bypass VAT and safety regulations, undercutting European firms and costing EU governments billions in lost revenue.

The political dimension is equally sensitive. European policymakers have grown increasingly wary of China’s expanding digital export machine, which is reshaping consumer habits across the continent. Low-priced fashion and household goods from Chinese platforms have gained enormous popularity with younger shoppers, particularly in Germany, France, and Spain, where Temu’s downloads rival those of Amazon.

For Brussels, however, the issue has evolved beyond commerce. It touches on questions of consumer protection, data security, and fair competition—areas where the EU is determined to assert regulatory control. “Europe cannot remain an open door for goods that ignore our tax and safety standards,” said Paolo Gentiloni, the EU Commissioner for Economy, in a statement. “We are updating our customs rules to reflect the realities of digital trade.”

Customs Modernisation and Enforcement

The proposed crackdown is part of a sweeping Customs Reform Package that aims to create a single EU Customs Authority and a new digital import system by 2028. Under the plan, the €150 threshold for customs duty exemption could be abolished altogether, meaning all parcels—regardless of value—would face standard VAT and safety checks.

Brussels also intends to make online marketplaces legally responsible for ensuring that taxes are paid on the goods they sell to EU consumers. This would effectively shift the compliance burden from fragmented customs offices to the platforms themselves, forcing companies like Shein and Temu to collect VAT at the point of sale and submit it directly to EU tax authorities.

Enforcement remains a formidable challenge. Most parcels arrive through national postal systems that lack the staff and digital infrastructure to inspect millions of small packages. Customs officials in countries such as the Netherlands and Belgium, where major logistics hubs like Liège process vast quantities of e-commerce imports, say they are overwhelmed.

Industry Reactions

Chinese e-commerce platforms have so far responded cautiously. In statements, Shein and Temu have both said they comply with all applicable EU tax laws and are committed to transparency. Yet industry analysts say that higher import costs or stricter enforcement could push these platforms to adjust their pricing models—or even reroute shipments through third countries.

European retailers, long frustrated by what they see as an uneven playing field, have welcomed Brussels’ renewed urgency. “We cannot compete with goods that arrive tax-free and often without meeting EU safety standards,” said one German retail federation representative. “This is not protectionism—it’s basic fairness.”

The Broader Context

The initiative also fits within a broader recalibration of Europe’s trade relationship with China. As the EU seeks to assert “strategic autonomy” and reduce dependencies in critical sectors, the flood of low-cost imports from Chinese platforms has come to symbolise the asymmetry in global trade.

With elections looming next year and public sentiment hardening against perceived unfair trade practices, Brussels’ resolve to act has sharpened. The crackdown on cheap Chinese parcels is likely to become one of the EU’s most visible trade policy measures in 2025—a test of whether Europe can adapt its customs and regulatory framework to a rapidly digitising global economy.

In the end, the reform’s success will depend not only on political will but also on the EU’s ability to modernise its own systems. For now, one thing is clear: the days of frictionless, duty-free parcels landing on European doorsteps may soon be numbered. By Nick Staunton | European Business Magazine