Why is Shein becoming more expensive in the EU? Ask our chatbot

Previously, e-commerce giants were able to ship millions of ultra-cheap, tax-free individual packages directly from Chinese factories to European consumers, avoiding customs duties entirely. To end this structural advantage and protect local European retailers, the EU has eliminated this exemption, introducing a flat-rate customs duty of €3 that applies to each product category within a parcel rather than once per parcel.

If a shopper buys a shirt, a pair of sunglasses and a bag in a single order, they will now face a €9 customs charge on a low-cost bundle that previously entered the continent completely free of charge.

The EU made this decision because massive non-EU platforms were exploiting the exemption to flood Europe with billions of untaxed shipments. This loophole created severe unfair competition for local European retailers, which are legally required to pay domestic taxes and comply with strict safety standards.

Likewise, these ultra-cheap imports pose serious health and environmental risks due to microplastic pollution from non-biodegradable fast fashion, the substantial carbon footprint generated by individual air-freight deliveries, and frequent regulatory tests revealing toxic levels of heavy metals and chemicals in consumer products.

Do you want to know more about how the new tax will affect you as a worker or a business owner? Ask the Euronews AI chatbot!