The amount of small packages imported from countries outside the EU have increased in recent years. In 2024, the value of imports to France totalled €5.3 billion. In 2025, 97% of small packages came from China and had an average value of €6.40. To curb the flow of low-value merchandise into France and incentivise purchases from European businesses, France initially enacted a national small package tax.

In this article, we explain the history of the small package tax and its replacement by the European customs duty. Learn about the duty's application, amount, exemptions, and impact on imports.

Key takeaways

• The small package tax was a temporary tax in France on shipments valued at less than €150 sent from non-EU countries. It was repealed and replaced by a standardised, Europe-wide customs reform.
  
• The new European customs duty is set at €3 per item category, instead of €2 under the French law. It applies to business-to-consumer (B2C) shipments imported to Europe valued at €150 or less.
  
• The tax directly affects businesses, platforms, and carriers outside of Europe, but they can recuperate the funds on final purchase prices.
  

What is the small package tax?

The small package tax is a now-repealed French tax on shipments valued at €150 or less from non-EU countries. It was introduced by Article 82 of the 2026 Finance Act and set at €2 per item category.

The €2 tax was intended to reduce imports of low-value goods to mainland France, Monaco, Martinique, Guadeloupe, and La Réunion. It aimed to combat unfair competition on foreign – particularly Asian – e-commerce platforms, such as Shein, AliExpress, and Temu. It took effect on 1 March 2026 and was repealed on 1 July 2026 – replaced by a unified, Europe-wide customs duty.

The small package tax was repealed due to its low earnings. It brought in only €2.3 million per month to the government, instead of the €33.3 million initially anticipated. Foreign businesses and e-commerce platforms evaded the small package tax by redirecting shipments to neighbouring countries exempt from it (e.g., Belgium and the Netherlands) and then delivering them to French customers by ground shipments.

What changed about the small package tax on 1 July 2026?

The national small package tax was repealed on 1 July 2026. Imports worth €150 or less are now charged a European customs duty of €3 per item category. This prevents businesses from evading the fee by sending shipments to neighbouring countries.

Similar to the small package tax, the purpose of the new European measure is to re-establish fair competition for European businesses. Until now, foreign businesses and e-commerce platforms did not have to pay customs duties on shipments valued at €150 or less and were also exempt from the strict (e.g., environmental, social, and tax) norms imposed on European businesses. These combined competitive advantages let foreign businesses sell products at low prices, which led European customers away from purchasing at local businesses.

The new customs law standardises tax rules across Europe, ensures fair competition, and protects customers from potentially hazardous (i.e., non-compliant or illegal) products entering the European market. It is a temporary measure that applies until the EU customs information platform is ready on 1 July 2028.

What will change about customs duties on 1 November 2026?

Beginning 1 November 2026, customs duties will include additional European fees. This will apply uniformly across the EU and will cover the cost of managing small packages imported to Europe. The European Commission will determine the amount.

What transaction types are affected by the new customs duty?

The new customs duty applies to all business-to-consumer (B2C) transactions made online for low-value goods sold by businesses outside of the EU (e.g., Asia or the US). In France, the measure primarily affects distance selling of clothing, shoes, accessories, toys, and jewellery valued at €150 or less.

How much is the new customs duty?

The new European customs duty is €3 per item category. For example, if a business sends a package containing three, five, or ten T-shirts, they pay a customs duty of €3 because T-shirts represent one item category. However, a package containing one pair of jeans, two T-shirts, and three toys will owe €9. This is because jeans, T-shirts, and toys are considered three different categories of items, depending on the customs nomenclature.

Who pays the new customs duty?

Typically, the business, intermediary platform, or carrier shipping the package pays the customs duty – not European customers. The duty must be paid at customs at the time of import. The EU takes the duties and pays out 25% to the member country that receives, processes, and clears the package through customs.

However, to protect their profit margins, international e-commerce businesses can recoup duties directly through the final price paid by customers.

Are there exceptions to the €3 customs duty?

Yes, there are some situations that are exempted from the €3 customs duty:

• Consumer-to-consumer (C2C) shipments valued at €45 or less using the Online Customs Clearance via Automated Processing Import/Export (DELTA I/E) or DELTA H7 customs declaration systems are eligible for the standard customs duty exemption.
  
• Shipments labelled with "CO" between mainland France and overseas departments and regions (DROM) are subject to the special overseas tax regime.
  
• business-to-business (B2B) shipments using the DELTA I/E system are charged the common external tariff (TEC) from the first euro.
  
• Shipments with an intrinsic value of over €150 are charged TEC.
  
• Shipments of goods that fall under preferential commercial agreements or EU customs measures are charged the agreement's preferential rate – often 0% – if value-added tax (VAT) was not paid via the Import One Stop Shop (IOSS) and goods are declared via the H1 declaration.
  

What changes for online businesses and importers?

For online businesses and importers based outside of the EU, customs duties on low-value shipments will raise import costs and erode profits. It also requires additional information (e.g., accurate, standardised descriptions and country of origin) and product identifiers (PIDs) beginning November 2026.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard or using our powerful API.

Stripe Tax helps you monitor your obligations and alerts you when you exceed a tax registration threshold based on your Stripe transactions. It can also register to collect tax on your behalf in the US, automate US filings in the Dashboard, and manage global filings through trusted partners. Stripe Tax automatically calculates and collects sales tax, VAT, and GST on:

• Digital goods and services in all US states and over 100 countries
  
• Physical goods in all US states and 42 countries
  

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration, or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: If you need to register for a sales tax in the US, let Stripe manage your tax registrations. You'll benefit from a simplified process that prefills application details – saving you time and simplifying compliance with local regulations. If you need help registering outside of the US, Stripe partners with Taxually to help you register with local tax authorities.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax automates US filings in the Dashboard, powered by TaxJar. For global filings, Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax or get started today.

FAQs about the small package tax and new customs duty