From 1 July 2026, the EU will introduce a flat-rate customs duty of three euros per product category for small consignments from non-EU countries, abolishing the previous 150 euros duty-free threshold. The operational consequences are already becoming apparent. “The reform will not reduce shipment volumes,” says Rico Back, Managing Partner of SKR AG. “Instead, it is reshaping logistics and processing structures – and intensifying competition.”
Direct shipping loses economic appeal
Under the new EU rules, the three euros duty is applied per tariff item, not per parcel. A shipment containing multiple product categories – for example, a phone case and a charging cable – will incur multiple charges. Mixed consignments will therefore face disproportionately higher costs. In addition, the EU plans to introduce a flat processing fee of around two euros per imported consignment, regardless of the goods’ value.
“These new duties and fees do not eliminate the fundamental price advantage of direct imports from China over European goods,” explains Rico Back. “However, individual shipments are becoming less attractive, while consolidated import models – such as bulk shipments into EU warehouses for onward distribution – are gaining importance.”
Logistics capabilities determine competitiveness
The changes affect all non-EU suppliers. Those able to adapt their logistics efficiently will gain a clear competitive edge. Large platforms can respond faster to regulatory changes, operate more flexible networks, and invest strategically. Smaller suppliers face the same pressures but often lack the capacity to react with the same speed and efficiency.
Platforms are already adapting
“The expectation that these measures will slow down competition from the Far East is unlikely to materialise,” says Rico Back. “Goods flows are not declining – they are being reorganised.”
Platforms such as Temu and Shein have already begun adjusting their logistics models. Instead of shipping individual parcels directly from China, they are increasingly moving inventory to European distribution centres and fulfilling orders locally. This reduces processing complexity and shortens delivery times.
“The shift towards EU-based distribution will accelerate significantly from the summer onwards,” adds Rico Back. “Goods flows always follow the most efficient logistics structures – and those structures are evolving rapidly.”
Competition intensifies under new cost structures
The new regulations are fundamentally changing cost structures in cross-border trade while pushing customs and tax processes further upstream in the supply chain. Platforms and retailers must integrate these processes earlier to maintain speed, reliability and predictability.
Direct-to-consumer shipping models from China are coming under particular pressure, especially for low-margin products and suppliers relying on manual customs processes. By contrast, suppliers that import goods into the EU early and store them locally benefit from lower per-unit costs and more stable operations.
“Competition is not determined by regulation, but by the ability to reconfigure supply chains quickly and efficiently,” concludes Rico Back. “Those who control their structures will remain competitive – even under new conditions.”
