Recently, the European Union formally approved new regulations on small parcel import tariffs, announcing the abolition of the duty-free policy for packages valued below €150, effective July 1. This marks the definitive end of the de minimis exemption benefit that has supported China-EU cross-border e-commerce for years, presenting Chinese sellers deeply rooted in the European market with entirely new operational challenges.

   €150 Duty-Free Threshold Eliminated, Two-Year Transition Period Established   

       As a policy buffer, the EU has established a two-year transition period from July 1, 2026, to June 30, 2028. During this period, small parcels valued at ≤€150 and shipped directly to EU consumers will be subject to a fixed tariff of €3 per customs tariff subheading, with different categories of goods within a single parcel calculated separately.

       For example, a parcel containing both a silk blouse and a wool blouse would incur €6 in tariffs, as these fall under two distinct product categories.

It is particularly noteworthy that the €3 fixed tariff during this transition period applies without exception. Even goods falling under the following special regulatory scenarios must still pay the tariff as required:

• Goods exempt from value-added tax under Article 143(1)(ca) of Directive 2006/112/EC;

• Remote import sales goods for which cross-border e-commerce platforms collect and remit VAT under the EU's Import One-Stop Shop (IOSS) mechanism;

• Postal parcels as defined in Article 1(24) of Delegated Regulation No. 2015/2446, i.e., traditional international mail sent through the Universal Postal Union system.

       Following the conclusion of the transition period on July 1, 2028, the €3 fixed tariff policy will be formally discontinued. All non-EU imported goods will then be subject to actual most-favored-nation rates or preferential rates under applicable agreements based on their corresponding customs tariff codes, while VAT will continue to be levied according to existing rules in individual EU member states.

       For sellers relying on low-price, high-volume strategies, this new policy represents a near-devastating blow, directly dismantling the industry's original low-price competitive logic. Multiple cross-border e-commerce platforms have already reminded sellers to promptly adjust their business strategies.

   Surging Costs Leave Sellers in a Dilemma   

       Once implemented, the policy will have profound implications for the global cross-border e-commerce industry. According to statistics, the number of cross-border parcels under €150 within the EU reached 4.6 billion in 2024. As of July 2025, monthly import volumes were still up 36% year-over-year compared to 2024.

       Currently, nearly 180 direct-mail parcels enter the EU every second on average, 97% of which are small items. Temu and Shein alone account for over 70% of order volume, with more than 95% of products on these platforms priced below €150. The new policy will directly increase their average costs by 15-20%.

       For Chinese sellers, the cost pressure from the new regulations is immediate and tangible. Tariff costs for multi-category combination parcels will increase significantly. The operational model previously reliant on "low-price bulk distribution" and "order-splitting for tax avoidance" will no longer be sustainable, squeezing corporate profit margins. Moreover, the new regulations cover IOSS mechanism goods and postal parcels, leaving virtually no room for tax avoidance and substantially increasing operational difficulty for small and medium-sized sellers.

       Faced with these policy adjustments, Chinese cross-border e-commerce enterprises must optimize their response strategies across multiple dimensions.

• At the operational level: Simplify product categories within parcels, avoid combining goods under different tariff codes, and reduce tariff costs by shipping single-category parcels;

• At the product level: Streamline product line design, reduce product categories spanning different tariff classifications, and control tariff expenditures from the source. Pricing strategies also require realignment, as enterprises must find balance between costs and market competitiveness, avoiding blind price wars.

       Localized supply chain layout has become a critical development direction. The new regulations are driving enterprises to accelerate the establishment of EU-based warehousing or partnerships with local businesses. Local inventory stocking can circumvent import tariffs while improving logistics and delivery efficiency. Digital transformation is also imperative, as enterprises must build digital inventory management systems to automate product classification and tariff calculations, adapting to operational requirements under the new regulations.