New £2.60 charge on anyone ordering from Temu and Shein in EU

The European Commission hopes to reverse the 'desertification' of Europe's high streets (Image: Getty)

Online shoppers who regularly use low-cost online retailers such as Temu and Shein are being warned to brace for steeper prices from tomorrow with the arrival of a new customs tax. Under previous rules, consumers have been able to buy up to €150 (£129) worth of goods – including fast fashion, cosmetics and toys – without any customs charges as part of a "de minimis" exception – a rule that disregards small, trivial amounts.

However, in a bid to prevent the "desertification" of Europe's high streets, the EU's main executive body, the European Commission, has implemented a tax law reform to curb cheap Chinese imports. From Wednesday (July 1), small parcels under that value will be subject to a new €3 (£2.60) customs charge. It comes after it was revealed that in 2025 alone, almost 5.9 billion items were shipped into the EU without paying any form of customs tax, 90% of which came from China, and a figure almost quadruple the number that entered the bloc in 2022.

tThe rise of online shopping has 'contributed to the decline of traditional retail and the desertification of cities,' the EU said (Image: Getty)

“This reform ensures fairness for all businesses operating within the EU market while keeping customs procedures simple for consumers,” said Maros Sefcovic, the European commissioner for trade. “By introducing a small duty and stronger product traceability, we are closing loopholes that allowed unsafe and non-compliant goods to enter our market too easily.

“This is a key step in the modernisation of our Customs Union and towards a fully digital, agile and coordinated EU customs system fit for the challenges of our times.”

The EU fined Temu £174.5m after it failed to stop the sale of dangerous and illegal products (Image: Getty)

The duty will apply per item type, rather than per parcel. Officials have also stressed that the duty is only temporary, with the £2.60 charge only set to apply for two years. From July 2028, the rollout of a new EU Customs Data Hub will help to streamline the management of e-commerce imports. EU officials hope the new tax will make some consumers think twice, especially when buying very low-value items.

The new customs charges will also apply in Northern Ireland, under Brexit trading arrangements, but all proceeds will go to the UK Treasury. In the UK, the Treasury has said it will start charging import duties on small parcels worth less than £135 from October 2028 – earlier than the original May 2029 date, but still too late for many British retailers that have already gone out of business.