EU's New Customs Duty Changes Price of Cheap Garden Products from July

From 1 July 2026, a new small parcel customs duty will take effect in the European Union, affecting all goods ordered from outside the EU. A €3 customs duty will be added to each item, meaning garden supplies, decorations and tools ordered from Temu and Shein-style discount retailers will become significantly more expensive.

A new customs duty regime will come into force in the European Union on 1 July 2026, bringing about a significant change for everyone accustomed to ordering goods from e-shops outside the EU. From then on, a €3 flat-rate customs duty will be added to each small parcel, regardless of the package value or contents.

What the new regime means

Until now, the EU applied the so-called de minimis exemption, under which goods valued below €150 were not subject to customs duty. This encouraged purchases from cheap Chinese platforms such as Temu, Shein and AliExpress, where garden supplies, lights, decorations, flower pots and small tools are particularly popular.

Under the new regime, this exemption disappears and a €3 flat-rate customs duty will apply to each shipment. For example, if a garden enthusiast orders five garden torches with a total cost of €8, an additional €3 fee for one shipment is added, meaning a proportionally significant price increase.

The boom in discount retailers is unlikely to stop

Despite the price increase, the change may not significantly affect consumer behaviour. Many products will remain cheaper even after the customs duty is added compared to domestic or European manufacturer alternatives. Additionally, major platforms have already announced that they will adjust their pricing structures to minimise the perceived price increase for customers.

The change is part of the EU's broader effort to create more level playing field conditions for European merchants, who have had to pay VAT and other mandatory fees while goods arriving from outside the EU have escaped these obligations without consequence.

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