De minimis end goes global as EU, UK and Japan tax small parcels
The US, EU, UK and Japan are ending duty-free low-value parcels. The EU's €3 levy started in July 2026, the UK follows in 2028 and Japan in April 2028.
Temu and Shein grew into global shopping giants by shipping low-cost goods directly from overseas factories to consumers' doorsteps. Much of that model relied on de minimis rules, customs exemptions that let small, low-value parcels enter a country with little or no duty and minimal paperwork. As those exemptions are rolled back, the economics behind ultra-cheap online shopping are changing.
The United States has moved to close or suspend its de minimis exemption, and the effects are reaching shoppers. Prices on popular discount platforms have risen, and sales patterns and parcel volumes have shifted. The change is also spreading internationally. The European Union, the United Kingdom, and Japan are among the jurisdictions moving to tax or add fees to small imported packages. That trend has raised concerns among postal operators, who handle a large share of these shipments and must adapt to new customs requirements.
Implementation has not been smooth. Rules covering parcels sent through postal channels have faced delays and revised deadlines, partly because of political timing and partly because of the logistical challenge of collecting duties on millions of small items.
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The US, EU, UK and Japan are ending duty-free low-value parcels. The EU's €3 levy started in July 2026, the UK follows in 2028 and Japan in April 2028.
US Customs pushed its new de minimis mail-entry rules from Oct. 22 to Jan. 20, 2027, past the midterms, as the EU adds a €2 parcel handling fee on Nov. 1.
CBP pushed its de minimis mail-entry rule from Oct. 22 to Jan. 20, 2027, delaying cost increases on small parcels and imported drugs until after the midterms.
Ending the $800 de minimis exemption raised Shein and Temu prices, cut Shein's US revenue 14% in Q1 2026, and hit low-income shoppers hardest.
UPU chief Masahiko Metoki says the EU's new charges on parcels under €150 could hit global postal and logistics networks as Temu and Shein volumes fall.
CBP indefinitely suspended the $800 de minimis exemption and created a postal entry process, now delayed to Jan. 20, 2027, as the EU adds a €3 parcel duty.
Temu and Shein have raised prices and shifted to local warehouses as the US ended its $800 de minimis rule and the EU imposed a €3 duty on low-value parcels.
Shein and Temu raised U.S. prices as the $800 de minimis exemption ended. Some items jumped up to 377%, and duties on low-value parcels are now locked in.
U.S.-bound postal traffic fell 81% when de minimis ended in 2025. A year on, Shein and Temu prices are up and the EU is taxing small parcels too.