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EU’s end of the €150 duty shield hits fast-fashion margins hard

 

The European apparel and textile sector is bracing for mandatory price increases following the fast-tracked EU decision to abolish the €150 customs duty exemption (de minimis) for non-EU e-commerce imports. This shift, set for early 2026 rather than the original 2028 target, aims to level the playing field for domestic retailers. The change will impose tariffs and potential handling fees—such as the proposed €2 charge per low-value shipment—directly onto the massive influx of foreign goods. This directly affects the profitability model of ultra-low-cost online giants like Shein and Temu, which drove the surge of over 4.6 billion low-value parcels into the bloc last year, with over 90% originating from China.

Mandatory data and compliance friction

Beyond tariffs, the industry must contend with heightened compliance expenses under the Import Control System 2 (ICS2). This requires e-commerce platforms and carriers to submit granular data, including precise 6-digit Harmonized System (HS) codes and consignee details, before goods arrive. Non-compliance, such as using vague product descriptions, risks shipment rejection and administrative penalties, directly increasing supply chain friction and costs.

For established European retailers, who are currently struggling against the competition that has captured an estimated 20% of the EU's online clothing market, the customs overhaul presents a critical, if delayed, opportunity to regain competitiveness and ensure imported garments meet EU safety and sustainability standards.

 
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