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EU Ends Duty-Free Low-value Parcels In Blow To China’s E-Commerce Giants

China’s cross-border e-commerce sellers are bracing for a major hit as the European Union prepares to scrap its €150 (US$174) duty-free threshold on low-value parcels next year, a move that mirrors Washington’s recent crackdown.

According to the European Commission, 91% of all sub-€150 shipments in 2024 came from China, and their volume more than doubled in a year.

Sellers warn that new compliance burdens and higher taxes will squeeze already thin margins and push consumer prices higher.

The shift comes as EU scrutiny of Chinese firms intensifies, from proposed telecom bans on Huawei and ZTE to possible action against fast-fashion giant Shein.

Beijing urged Brussels to maintain a “fair and transparent” business environment.

The removal of the exemption follows a surge in low-value imports and aims to “level the playing field” with traditional retail, the EU said.

With both the U.S. and EU tightening rules, analysts warn Chinese merchants may run out of high-income export markets.

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