EU Ends Tariff Exemption for Sub-150 Euro Parcels, Imposes 3 Euro Transition Tariff

The EU's tariff measure on small parcels, implemented on July 1, has been in effect for one month. The measure abolishes the long-standing tariff exemption for B2C direct-shipped parcels valued under 150 euros. During a transition period running from July 1, 2026 to June 30, 2028, all low-value e-commerce parcels under 150 euros entering the bloc are subject to a fixed 3 euro tariff per product category, determined by the goods' HS codes. EU data shows that 46 billion cross-border small parcels valued under 150 euros entered the bloc in 2024, of which 91% came from China, primarily shipped directly through platforms including AliExpress, Temu and SHEIN.

Since the policy took effect, some cross-border e-commerce companies have seen European orders decline. The general manager of a Zhengzhou-based cross-border e-commerce company, which focuses on North America and Europe and sells home goods, beauty and apparel through TikTok, Amazon and Temu, said European orders have fallen significantly since the policy was implemented. The company is phasing out low-priced SKUs, concentrating on high-value differentiated products, completing EU VAT registration and product certification, building compliant overseas warehouse capacity, and diversifying its market presence with increased focus on the United States, while integrating upstream supply chain resources to reduce costs. Another exporter of pet supplies said it is adjusting its global market strategy, moderately scaling back European operations and increasing its presence in the United States and other overseas markets.

TUREBB, a car care brand with deep roots in the European market, prepared in advance with semi-managed self-built warehouses and platform official overseas warehouses, and has been less affected by the EU tariff policy. The brand's head said it will use platform overseas warehouse shipping as the primary fulfillment method for best-selling items, while maintaining flexible inventory at third-party overseas warehouses for replenishment.

Cross-border platforms have rolled out supporting policies. A senior executive at a leading cross-border e-commerce platform said merchants stocking goods in overseas warehouses are operating steadily. The platform has implemented support measures across three areas: logistics infrastructure, brand incubation and compliance assistance.