PARIS – The European Union is moving up its timeline to close the loophole that has fueled the rapid rise of ultra-fast fashion Chinese e-commerce platforms such as Shein and Temu.
European finance ministers from the 27 countries that comprise the EU approved an agreement to abolish the exemption on packages valued at less than 150 euros, to be implemented as early as the first quarter of 2026 — two years ahead of schedule.
The new rules will also see packages subject to additional handling and import charges, though the amount of the additional fees has not been determined.
The move comes as France has been pushing for stronger action against the platforms, and against the backdrop of a furor over Shein opening its first physical retail store in Paris.
It echoes the U.S. move to roll back its own de minimis allowance, aimed at curbing the flow of ultra-cheap Chinese imports, which went into effect in May.
More than 12 million packages a day flowed into Europe in 2024, with 90 percent originating in China. The number of Chinese imports to Europe has jumped 7.3 percent in the first nine months of 2025 alone.
France pushed to speed up the implementation of import fees, arguing that the flood of goods was overwhelming customs systems, resulting in undervaluation of products and widespread noncompliance with European safety rules.
Other countries had also pressed to move up the timetable, as the flood of goods has caused unfair competition and destabilized several industries.
“Recent events have shown that the issue of e-commerce platforms is an important issue of competitiveness and consumer protection,” French finance minister Roland Lescure told AFP ahead of the vote.
The EU had previously planned to eliminate the exemption and enforce additional measures on Chinese packages in mid-2028 as part of an overall reform and harmonization of customs across the board. But growing political pressure, particularly from the retail, fashion and consumer goods sectors, pushed lawmakers to speed up that deadline.
Once implemented, every low-value package entering the bloc would be subject to a customs charge. The European Commission has proposed a flat-rate duty, while France is lobbying for a fixed fee of around 5 euros per parcel, arguing that Chinese exporters frequently declare inaccurately low values. A separate EU-wide 2 euro handling fee is also under discussion.
Shein and Temu, both of which rely on high-volume, low-value shipments dispatched directly from Chinese factories to European consumers, would be impacted. Shein in particular has been under fire in France since announcing it would open its first physical store inside the legacy department store BHV.
Last week’s opening drew protestors and politicians speaking out against the company, in part for its high-volume, low-cost model, as well as a scandal in which sex dolls resembling children were being sold on its marketplace. BHV has seen an exodus of brands, including Agnès B., Rivedroite and the SMCP stable of brands, from its aisles as upmarket labels do not want to be associated with Shein’s pricing and model.
However, consumers don’t seem to mind, with BHV reporting more than 50,000 customers in the first five days. Still, BHV parent company Société des Grands Magasins has pushed back Shein’s planned openings in five regional stores by several days or weeks.
SGM said the delay is intended to refine the concept rather than cancel it, and unrelated to the controversy. The company said that due to demand, it is working with Shein on larger, more suitable spaces to avoid disappointing customers and ensure stronger execution when Shein rolls out in additional cities.
Following the uproar, French authorities launched proceedings to suspend Shein’s online sales over product-safety concerns, and to open and inspect every package coming into the country.
Representatives for Shein did not comment on the EU proposal.
There are other national laws proposed in Italy and Romania. The EU-wide measure is expected to be submitted for approval at the next finance ministers’ council on Dec. 12.
