Europe’s New VAT & the End of US De Minimis: What They Mean for Your Consolidated Shipments From China
For a long time, it was possible to “game” the system when buying from China:
- Keep each parcel small and cheap
- Ship everything as individual packages
- Rely on VAT exemptions and de minimis thresholds so duties and taxes barely showed up
That era is over.
- In the European Union, the old €22 import VAT exemption for small parcels was abolished on 1 July 2021. Now all commercial imports are subject to VAT, and every parcel needs an import declaration. Tax Adviser+3Taxation and Customs Union+3Avalara+3
- From 1 July 2026, the EU will also impose a flat €3 customs duty on low-value e-commerce parcels ≤ €150, mainly hitting small parcels from non-EU platforms such as Temu, Shein and AliExpress. btobnice.com+4欧盟理事会+4vatcalc.com+4
- In the United States, the famous US$800 de minimis exemption has been eliminated in stages during 2025: first for packages from China and Hong Kong starting 2 May 2025, then for most low-value imports from all countries from 29 August 2025. Those parcels now incur normal duties, taxes and fees. DHL+5The White House+5Investopedia+5
If you are an EU or US buyer using consolidated shipments from China—for personal purchases, side-hustle reselling or small e-commerce—these changes matter.
The good news: consolidation still works, and in many cases is more valuable than before. But the way you use it must adapt to the new VAT and tariff reality.
This guide explains:
- What exactly changed in Europe and the US
- How those changes affect consolidated vs single-parcel shipping
- Practical ways to design your China → EU/USA consolidation so you save money and stay compliant
1. Europe’s New VAT and the Coming €3 Duty on Small Parcels
1.1 End of the €22 VAT Exemption
Before 2021, non-EU sellers could ship small consignments (≤ €22) into the EU without import VAT. That created a clear advantage for cheap direct-from-China parcels compared with local EU retailers who had to charge VAT on every sale.
From 1 July 2021, the EU changed the rules:
- The €22 low-value consignment relief was abolished.
- All commercial goods imported into the EU are liable to VAT, regardless of their value. SimplyVAT+4Taxation and Customs Union+4Avalara+4
- An import declaration is now required for all goods entering the EU. Taxation and Customs Union
To handle the flood of low-value parcels, the EU created the Import One-Stop Shop (IOSS):
- For consignments up to €150, non-EU sellers or marketplaces can register for IOSS and collect VAT at checkout, then declare it monthly via one electronic VAT return. Taxation and Customs Union+2vatcalc.com+2
- If IOSS is not used, VAT is collected at import by the customs declarant (e.g. FedEx, DHL, national posts). FedEx
Implication for you:
Whether you use consolidation or single parcels, VAT is now always there. You can no longer “hide” under €22.
1.2 From July 2026: €3 Customs Duty on Low-Value Parcels
The next big change is coming on 1 July 2026.
The Council of the EU has agreed to introduce a fixed €3 customs duty on small e-commerce consignments: EU Perspectives+5欧盟理事会+5vatcalc.com+5
- Applies to parcels valued under €150 arriving in the EU
- Targeted largely at non-EU sellers registered in IOSS (covering about 93% of low-value flows, mostly from Chinese platforms) 欧盟理事会+2vatcalc.com+2
- Ends the long-standing “duty-free under €150” treatment for small parcels
Think about what that means in practice:
- If you let 10 separate parcels of cheap items come from China, you may pay 10 × €3 = €30 in duty alone from 2026, plus VAT and carrier fees.
- If you consolidate those items into one parcel (or one customs entry), you’re looking at a single duty event instead of ten.
Europe’s policy goal is clear: stop billions of tiny, lightly taxed parcels from bypassing normal customs channels and undercutting EU sellers. Reuters+1
For buyers who already use consolidation, this shift is actually an opportunity—if you structure your shipments intelligently.
2. The End of US De Minimis: What Actually Happened in 2025
2.1 Stage 1: China & Hong Kong Lose De Minimis (May 2025)
The US de minimis exemption (Section 321) used to allow imports ≤ US$800 to enter duty-free and tax-free, with minimal customs data. That “easy mode” enabled platforms like Temu and Shein to flood the US with ultra-cheap parcels. Investopedia+1
On 2 April 2025, a White House executive order announced:
- The US would eliminate duty-free de minimis treatment for low-value imports from China, citing concerns over synthetic opioids and national security. The White House
Follow-up analysis and consumer-facing explainers noted:
- Starting 2 May 2025, parcels from China and Hong Kong under US$800 would no longer qualify for de minimis; instead, they face tariffs of up to 120% or a flat US$100 per package, later adjusted, plus normal customs processing. Investopedia+2纽约邮报+2
Result: small shipments from China that once slid in duty-free suddenly became high-duty, high-fee packages.
2.2 Stage 2: De Minimis Ends for Most Countries (August 2025)
By late August 2025, the shift became global:
- Trade and logistics briefings indicate that on 29 August 2025, the US ended de minimis treatment for most low-value imports from all countries, meaning most shipments ≤ US$800 now incur duties, taxes and fees. Avathon+5Practical Ecommerce+5Infios+5
Industry reports highlight the impact:
- Up to 50% of low-value cross-border e-commerce volume was routed via de minimis; its removal increased Asia-to-US air freight costs and forced many sellers to rethink their logistics models. Freight Amigo+2McKinsey & Company+2
- Freight forwarders moved from a “speed and volume” mentality to a “compliance and data first” approach: more HS codes, more declarations, more risk management. Avathon+2McKinsey & Company+2
Implication for you as a US buyer:
- The old rule of thumb—“If it’s under US$800, I’m safe”—is now wrong.
- Every small parcel from China (and increasingly from anywhere) can trigger normal customs duty + fees.
- Sending many light parcels is likely to be more expensive than sending fewer consolidated shipments with proper customs entries.
3. Consolidated Shipments From China: Why They Still Make Sense
3.1 What Consolidation Actually Is
In logistics terms, consolidation means combining multiple small consignments into a single, larger shipment:
- Multiple orders from different sellers are sent to a China forwarding warehouse
- The warehouse receives, checks, stores, then repacks them into 1–3 master cartons
- Those cartons are shipped internationally as one customs shipment (or one per lane/destination)
Freight and e-commerce logistics guides highlight several key benefits: Reuters+3Avalara+3aircargonews.net+3
- Lower per-unit freight cost: You pay the “first-kg” or base fee once, not ten times.
- Better volumetric weight: Smart repacking reduces wasted space, lowering chargeable weight.
- Fewer customs entries: One consolidated entry means one set of brokerage fees instead of many.
- Improved tracking and loss control: Far fewer tracking numbers to manage.
Under the old de minimis world, some buyers avoided consolidation to stay “under the threshold” parcel by parcel. But now that:
- The EU charges VAT on all imports and will add a €3 duty per small parcel, and
- The US has ended de minimis for most low-value imports,
…trying to “hide” behind small parcels no longer works. The balance has shifted clearly in favour of fewer, better-designed shipments.
3.2 How New VAT & Tariff Rules Interact With Consolidation
In the EU:
- Import VAT applies whether you bring in 10 parcels or 1 consolidated shipment—the total tax base is similar. FedEx+2Taxation and Customs Union+2
- The crucial difference is the new €3 per-parcel duty plus any extra handling fees:
- 10 small parcels under €150 each → potentially €30+ in duty, plus multiple clearance charges. Reuters+1
- 1 consolidated shipment (with proper declaration) → a single duty calculation and a single set of admin fees.
In the US:
- Without de minimis, every parcel can incur:
- Base customs duty
- Section 301 tariffs on China origin goods (often 7.5–25% and now sometimes higher for specific categories)
- Brokerage and processing fees per customs entry Avathon+3Practical Ecommerce+3DHL+3
- Consolidating into a larger shipment means:
- One customs entry
- Duties calculated on the full shipment, but admin costs shared across all items
- Easier to route via professional DDP or “duties prepaid” services that cleanly include tariffs in your quote.
In both regions, the math increasingly favours consolidation + compliant customs over many low-value parcels.
4. Designing Your China → EU/USA Consolidated Flow in 2025
4.1 Use a China Forwarding Warehouse as Your Hub
The modern pattern for small buyers looks like this:
- Open an account with a China forwarding / consolidation warehouse in a major hub (Shenzhen, Guangzhou, Yiwu, Shanghai).
- Use the warehouse address (with your customer ID) when you order from:
- Taobao, 1688, JD, Pinduoduo (domestic Chinese platforms)
- AliExpress, Temu, Shein, TikTok Shop (where custom addresses are allowed)
- Direct factory or supplier shipments
Your parcels first travel inside China, cheaply and quickly, to your warehouse.
When they arrive, the warehouse:
- Scans and registers each parcel
- Logs weight and dimensions
- Often takes photos of the outer box (and contents if you pay for inspection)
You see all incoming items in a dashboard and decide when to consolidate.
4.2 Consolidate and Repack for Lower Chargeable Weight
When you request consolidation, the warehouse typically:
- Removes redundant packaging (retail boxes, huge cartons, unnecessary fillers)
- Combines items into 1–3 optimally sized master cartons
- Adds appropriate internal protection (bubble wrap, foam, corner protectors)
- Re-measures actual and volumetric weight
Industry case studies show that proper repacking can deliver 30–50% savings compared with shipping items individually, mainly by reducing duplicated base fees and optimising volume. Avalara+2aircargonews.net+2
In the new VAT & tariff environment, this also means fewer customs entries and lower admin fees.
4.3 Choose the Right International Service Type
From your China warehouse to the EU/US, you usually have a choice:
For Europe
- DDP air “special lines” (7–15 days)
- Ideal for 2–30 kg consolidated shipments
- The forwarder acts as importer of record, pays VAT and duties and delivers to your address
- Particularly attractive given VAT on all imports and the coming €3 per-parcel duty FedEx+2Reuters+2
- Rail/sea + last-mile courier (15–35+ days)
- Better for 30–100+ kg and bulk restocking
- Cheaper per kg, but slower
- Postal / DAP routes
- Lower freight headline, but VAT and duties collected on arrival and more exposed to per-parcel admin charges
For many EU shoppers and micro-sellers, DDP consolidation is becoming the “default safe option”: one all-in price, no surprise VAT/duty letters.
For the USA
- DDP or “duties prepaid” air e-commerce lines
- Forwarder files full customs entry, pays duties & Section 301 tariffs, then injects packages into USPS/UPS/FedEx
- Helpful now that de minimis is gone for most low-value imports Avathon+3Practical Ecommerce+3DHL+3
- Sea/rail to a US hub + domestic distribution
- Competitive for heavier consolidated shipments where you’re restocking inventory rather than buying one-off items
Again, consolidation is the enabler: it’s much easier and cheaper to run one compliant DDP entry for a consolidated load than to fix customs issues for dozens of random parcels.
4.4 Get Your Data Right (New Rules = More Scrutiny)
McKinsey and other analysts stress that the post-de minimis logistics model is data-driven: customs agencies are demanding richer, more accurate shipment data, and logistics providers must adapt. McKinsey & Company+2Avathon+2
You can help your forwarder by:
- Providing accurate product descriptions and values
- Keeping supplier invoices and payment proofs organised
- Avoiding deliberate under-valuation or vague descriptions (“gift”, “sample”)
This reduces the risk of:
- Customs re-assessing values
- Parcels being held while they request more information
- Fines or retroactive taxes due to misdeclaration
In a stricter world, compliance is a key part of “cheap”.
5. Practical Checklists: What You Should Change Now
5.1 For EU Buyers (Personal + Small Sellers)
- ✅ Assume all imports from China are subject to VAT, regardless of value. Tax Adviser+3FedEx+3Taxation and Customs Union+3
- ✅ Plan for a €3 customs duty per small parcel under €150 from 1 July 2026; build this into your cost model. EU Perspectives+4欧盟理事会+4vatcalc.com+4
- ✅ Stop relying on dozens of tiny parcels; use a China forwarding warehouse and consolidate.
- ✅ For 2–30 kg, consider EU DDP air lines so VAT and duty are built into one transparent price.
- ✅ For heavier buys, use rail/sea consolidation with proper customs handling.
- ✅ Keep all invoices and product lists ready in case your forwarder/customs asks for additional documentation.
5.2 For US Buyers (Personal + Small Sellers)
- ✅ Accept that US$800 de minimis is effectively gone for China/HK and largely for other origins; small parcels are no longer “free”. DHL+5The White House+5Investopedia+5
- ✅ Avoid a “parcel forest” from China; move your purchases into fewer, consolidated shipments.
- ✅ Choose DDP or duties-prepaid routes wherever possible so tariffs and fees are covered up front.
- ✅ If you resell, consider restocking via consolidated shipments into a US warehouse, then shipping domestically to your customers.
- ✅ Work with forwarders who can show you sample customs entries and are transparent about how they handle Section 301 tariffs and new postal fees.
6. Conclusion: The Game Has Changed—Your Strategy Should Too
Europe’s VAT reform and small-parcel duty, together with the end of US de minimis, are sending a clear message:
The age of “millions of tiny, lightly taxed parcels from China” is over.
If you keep importing from China as if it’s still 2019—ordering randomly, shipping everything direct, hoping parcels are “too small to matter”—you’ll face:
- More surprise VAT/duty invoices
- Higher per-item shipping and handling costs
- More customs holds and uncertainty
But if you:
- Treat a China forwarding warehouse as your hub
- Consolidate shipments intelligently
- Use DDP or tax-included services where they make sense
- And keep your product data clean,
you can still make China → Europe/USA shipping work affordably and predictably.
The rules have changed—but consolidation, done right, is one of the few strategies that becomes more powerful as VAT and tariffs tighten.
