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EU Slaps More Fees On Cheap Shein And Temu Parcels, Expects €6 Billion Windfall

• By  Textile Excellence
• October 31, 2026

Another €2 charge kicks in on low-value parcels on November 1, adding to the €3 fee already in place. Cheap parcels are no longer getting a free ride into Europe.

Cheap online shopping in Europe is getting more expensive. The EU is tightening the screws on low-value parcels entering the bloc, with new fees targeting the flood of inexpensive imports led by Chinese platforms Shein and Temu. And the money involved is substantial: the charges could generate nearly €6 billion a year for the EU budget between 2028 and 2034, according to a European Commission document seen by Reuters.

Around 5.8 billion parcels worth less than €150 entered the EU last year, up 26% from 2024. The Commission estimates that most were undervalued to avoid customs duties.

The EU has already imposed a €3 charge on these parcels since July 1. From November 1, an additional €2 handling fee will apply to each separate item, pushing up the cost of low-value shipments even further.

The measures are expected to hit the business models of platforms built around ultra-cheap products and direct-to-consumer deliveries. Temu's owner, PDD Holdings, said in August that the changes would have a considerable impact on parts of its business, though it did not quantify the hit. Shein, which earns about a third of its revenue in Europe, had already seen regional sales fall before the fees took effect, after raising prices and cutting advertising expenditure.

Brussels takes aim at the low-cost model

Dirk Gotink, the European Parliament lawmaker leading the bloc's customs reforms, did not mince words. He described the new €2 fee as a way to tackle “a highly toxic business model of low value non-compliant e-commerce imports from China”.

He added: “The newly generated revenue gives us the chance and means to reverse decades of underinvestment and to give Europe's customs authorities the resources they need to effectively protect our single market.”

The Commission expects 90% of the revenue to go into EU coffers and 10% to member states, although the split could change as negotiations over the 2028–2034 budget continue. At present, member states retain 25% of customs fees.

Importantly, the €6 billion estimate already factors in an expected fall in parcel volumes as retailers adjust to the new charges.

Platforms scramble to adapt

Chinese ecommerce companies are already changing tack. Alibaba-owned AliExpress is expanding local warehousing in response to the fees, but warned that the charges would hurt low-income European households and “exacerbate the cost-of-living crisis”.

Temu has reportedly offered some shoppers discounts to offset the fees, according to screenshots seen by Reuters. It is trying to soften the blow for customers accustomed to €3 jewellery and €5 dresses. Temu did not respond to Reuters' request for comment.

Shein, which is expanding warehouse capacity in Poland, said it remained focused on keeping prices “competitive” while offering faster and more convenient delivery.

US rival Amazon appears less exposed. It says 97% of the products it sells in the EU are fulfilled from warehouses within the bloc, leaving relatively few shipments affected by the new charges.

The EU's move follows a similar US decision last year to scrap duty-free treatment for low-value online orders, citing concerns over unfair competition and unsafe products.

For Shein and Temu, the challenge is now clear: keep prices low while absorbing new costs, changing delivery models and adapting to a tougher customs regime. Europe's appetite for cheap parcels may not disappear, but getting them through the door is becoming more expensive.

“The new €2 fee is aimed at tackling a highly toxic business model of low value non-compliant e-commerce imports from China. The newly generated revenue gives us the chance and means to reverse decades of underinvestment and to give Europe's customs authorities the resources they need to ⁠effectively protect our single market.” - Dirk Gotink, the European Parliament lawmaker