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Europe Struggles with a Deluge of Chinese Parcels
In 2024, 4.6 billion small parcels worth less than 150 euros entered the European market. This amounts to 145 packages per second, with 91% originating directly from China. In France alone, 800 million of these budget-friendly shipments have been delivered, fueled by the rapid growth of platforms such as Shein and Temu. The result: severe weakening of local businesses, circumvented tax rules, and a surge in non-compliant products. This occurs amidst a trade war between the U.S. and China, which has pushed Beijing to redirect its flows towards Europe.
The French Treasury’s Strategy
The government has unveiled a plan in Roissy to curb the influx of these inexpensive parcels. The key measure? Starting in 2026, a fixed levy on each small package from outside the EU. The fee, estimated to be “a few euros,” would not fall on consumers but on platforms and importers. This revenue would finance the ramp-up of customs and health inspections, which are increasing significantly each year. This is a temporary solution until the European customs union reform scheduled for 2028.
A Regulatory Gap Becomes a Freeway
Since 2010, parcels valued under 150 euros from outside the European Union have been exempt from customs duties in the name of “customs fluidity.” However, with the rise of Chinese e-commerce, this exemption has become a significant regulatory blind spot.
Packages arrive en masse, often undervalued or misdeclared, and they naturally evade VAT and safety standards. When inspected, 94% are found non-compliant, with 66% deemed dangerous, according to French customs. The scale of the task for customs is enormous.
Spotlight on Shein and Temu
Based in Singapore for Shein and in China for Temu, these two platforms are at the center of criticism. Their business model features rock-bottom prices, direct shipping from Asia, and limited transparency regarding product compliance. They epitomize the ultra-fast fashion and low-cost overconsumption model.
Together, Shein, Temu, and Amazon now account for a quarter of online fashion sales in France. The European Commission is investigating the first two for failing to meet standards and questionable business practices.
By 2025, the Ministry of Economy pledges to triple the inspections on risky parcels, particularly targeting cosmetics, toys, electronic, and medical equipment. These operations will be conducted jointly by the DGCCRF and customs, with a focus on platforms posing a “systemic risk”: VAT fraud, dangerous products, and non-compliance with social or environmental standards. The ultimate goal is to align European regulation to entirely eliminate the customs exemption for items under 150 euros by 2028.
Is It Already Too Late?
While merchant associations finally welcome a recognition of the issue, they criticize the response as too delayed. “These are proposals that have been on the table since February,” laments Yohann Petiot, director of the Trade Alliance. He argues that immediate actions, such as the dereferencing of non-compliant platforms like what happened with Wish in 2021, are needed. He condemns a chronic inaction, noting that “any physical store would have been shut down” facing such high rates of non-compliance.
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The growth of Chinese platforms is coupled with an aggressive strategy: Temu reportedly increased its marketing budget in Europe by 30% since the start of the year. This shift in trade flows to Europe, following the tripling of U.S. customs duties, is already evident.
For France, the goal is as much about protecting consumers as it is about defending local commerce, tax equity, and health standards. The government is banking on the leverage effect of a European coalition to impose the levy by 2026.