The EU taxes cheap parcels from China – level 3

08-07-2026 07:00

The EU has introduced a new 3-euro fee on low-value e-commerce parcels from China, which targets major online retailers like Shein, Temu, and AliExpress.

Previously, these platforms entered the EU bloc duty-free under a long-standing exemption for goods under 150 euros. However, policymakers and European retailers complained about unfair competition after the number of exempt parcels surged from 1.4 billion to 5.8 billion in 2025. Lawmakers argue that this tax loophole was abused on an industrial scale, which gave Chinese giants a massive competitive advantage over local businesses.

Under the new rules, fees are applied per item category in a shipment; for example, a package with three different types of products will incur a 9-euro charge. This decision follows similar strict actions by the US, which completely ended its own low-value import exemptions earlier this year to protect its domestic market.

Difficult words: retailer (a person, shop, or online business that sells goods directly to customers for their personal use), exemption (a special permission that says a person or a company doesn’t have to pay a tax or follow a rule), loophole (a small mistake or missing part in a law that allows people to avoid paying taxes or following a rule legally), competitive advantage (a special strength, lower price, or condition that makes one company much better and more successful than its rivals).

You can watch the video news lower on this page.

Why did lawmakers say the long-standing duty-free exemption for goods under 150 euros needed to be closed after exempt parcels rose from 1.4 billion to 5.8 billion in 2025?

LEARN 3000 WORDS with NEWS IN LEVELS

News in Levels is designed to teach you 3000 words in English. Please follow the instructions
below.

How to improve your English with News in Levels: 

Test

  1. Do the test at Test Languages.
  2. Go to your level. Go to Level 1 if you know 1-1000 words. Go to Level 2 if you know 1000-2000 words. Go to Level 3 if you know 2000-3000 words.

Reading

  1. Read two news articles every day.
  2. Read the news articles from the day before and check if you remember all new words.

Listening

  1. Listen to the news from today and read the text at the same time.
  2. Listen to the news from today without reading the text.

Writing

  1. Answer the question under today’s news and write the answer in the comments.

Speaking

  1. Choose one person from our Conversation section.
  2. Talk with this person. You can answer questions from Speak in Levels.

 

Stock images by Depositphotos