The EU Parliament encourages non-EU Shopee to adopt the wholesale import + overseas warehouse model

New EU cross-border Shopee regulations: mandatory overseas warehouse model + cancellation of small tax exemption, direct mail costs soar

In July 2025, the European Parliament officially passed a new regulation on cross-border Shopee supervision, requiring non-EU Shopee to give priority to the bulk import + overseas warehouse model to improve customs supervision efficiency, while canceling the tax exemption policy for small packages below 150 euros and imposing higher handling fees on direct mail packages. The new regulations are expected to start reform in 2026 and be fully implemented in 2028123.

1. Core content of the new regulations

(1) Mandatory overseas warehouse model, batch inspection efficiency improvement

Non-EU Shopee needs to ship goods in batches to warehouses within the EU and then distribute them to consumers for centralized customs inspection. It is expected that the interception rate of non-compliant goods can be increased from 17% to 63%17.

Exempt objects: C2C (individual sellers) and second-hand trading platforms can still maintain the direct mail model, but need to strengthen product compliance review1.

(2) Cancellation of the tax-free policy for parcels below 150 euros

All imported goods, regardless of their value, are subject to customs duties and value-added tax (VAT rate 19%-27%)610.

Direct mail parcels: A handling fee of 2 euros per piece (a sharp increase in costs compared to the original policy).

Overseas warehouse shipments: Only 0.5 euros per piece, a 75% reduction in costs13.

(3) Increased responsibility of Shopee platforms

Shopee platforms (such as Amazon and Temu) are defined as "presumed suppliers" and are required to withhold and pay taxes and fees. Violation fines can reach 200% of the unpaid taxes10.

2. Policy background and objectives

Combating tax evasion and underreporting: EU statistics show that 65% of inbound small packages are underreported, resulting in tax losses of more than 10 billion euros each year210.

Protecting local enterprises: Chinese cross-border Shopee (such as SHEIN and Temu) have a tax-free advantage and their product prices are 30%-40% lower than those in the EU, creating unfair competition11.

Relieve customs pressure: In 2024, the EU will handle an average of 12 million cross-border parcels per day (84% of which are transit parcels). The new regulations intend to improve efficiency through batch inspection710.

3. Impact on sellers and response suggestions

(1) Changes in cost and timeliness

Direct mail sellers: The cost per piece will increase by 2 euros + VAT, the customs clearance time will be extended to 3-5 days, and the return rate may increase by 10%-15%10.

Overseas warehouse sellers: Although they need to bear the storage costs, they can save logistics costs in the long run and improve delivery timeliness (such as 3-5 days to Western Europe)37.

Source:Shopee:https://www.cnjiaxiao.com/category-Shopee.html

Source:Shopee Mall:https://www.cnjiaxiao.com/category-Shopee%20Mall.html

Source:Shopee US Official Website:https://www.cnjiaxiao.com/category-Shopee%20US%20Official%20Website.html

(2) Compliance upgrade is imminent

Tax: Register for IOSS (Import One-Stop Service) or VAT of the storage country to avoid customs clearance delays12.

Product certification: Ensure that CE, EPR (such as battery law), GPSR (EU authorized representative required) and other compliance documents are complete38.

(3) Supply chain reconstruction strategy

Deploy overseas warehouses: give priority to hub countries such as Germany and Poland, or join the platform's pan-European plan (such as Amazon FBA)310.

Optimize SKU: eliminate low-value goods, develop high-priced product lines (such as electronic products), and share tax costs10.

4. Market Outlook

Industry reshuffle: "distribution-type" small and medium-sized sellers that rely on direct mail may be forced to withdraw, and compliant and branded companies will dominate the market711.

Technology dividend: The EU plans to invest in AI and blockchain to improve inspection efficiency and promote a surge in demand for smart warehousing (WMS system)710.

Data source: European Parliament resolution document, Ebang Power, Hugo Cross-border, etc.