France levies taxes on small imported packages

 From March 1st, France will officially apply new taxes on small shipments imported from outside the European Union (EU).

From March 1st, France will officially implement new taxes on small shipments imported from outside the European Union (EU), marking a step aimed at controlling the influx of cheap goods into the domestic market.

A tax of 2 euros (2.36 USD) was passed in the 2026 budget bill, applying to orders valued under 150 euros (177 USD) sent to mainland France as well as overseas territories such as Martinique, Guadeloupe, Réunion and Monaco.

The French government says the measure aims to curb the massive importation of ultra-cheap products and encourage consumers to prioritize shorter supply chains and local stores. In reality, the policy primarily targets items ordered on Asian e-commerce platforms such as Shein, Temu, and AliExpress, which are attracting a large number of European customers due to their low prices.

It's worth noting that the tax is calculated per item declared to customs, not per package. If a package contains only identical products, the importer only has to pay 2 euros in tax. However, when a package includes many different types of products, an additional 2 euros will be charged for each type, potentially significantly increasing the total tax even if the order value remains unchanged.

In principle, consumers are not the direct payers of this tax. The responsibility for payment lies with the entity liable for value-added tax upon import, which could be the seller or an intermediary platform. However, experts believe this cost is likely to be added to the final selling price, meaning buyers still indirectly pay for it.

France's policy is only temporary before the EU implements a similar mechanism across the bloc. From July 1, 2026, the EU plans to apply a fee of 3 euros (3.55 USD) to small shipments to control the flow of cheap imports, while ensuring quality standards and fair competition for European businesses.

According to 2024 figures, approximately 4.6 billion packages under 150 euros entered the European market, equivalent to more than 145 packages per second, with 91% originating from China. This rapid increase is putting significant pressure on European manufacturers and retailers, prompting governments to tighten regulations on cross-border trade.

Source: VTV