Sourcing from China to Europe: The Complete 2026 Guide
By Samantha,
Jan 15, 2026
This 2026 guide to sourcing from China to Europe (EU-focused) covers key shifts like the end of the €150 duty exemption and interim €3 duty, essential shipping options, and more, to help businesses address compliance and cost challenges.
Europe is one of the world's most attractive destinations for products made in China because it combines large consumer demand, mature retail infrastructure, and strong cross-border e-commerce. But "Europe" is not one important rulebook. You are dealing with an EU-wide customs framework, EU-wide VAT concepts, and then member-state differences around VAT rates, product compliance enforcement, and local market expectations.
What is truly changing in 2026 is that Europe is tightening the low-value parcel system that helped fuel direct-to-consumer imports. For years, goods valued under €150 could enter the EU without customs duties (though VAT still applied). The European Commission has stated that the €150 customs duty exemption threshold will be removed in 2026, because the current exemption is no longer justified in the modern e-commerce model and creates unfair competition with traditional retail imports.
On top of that, EU policymakers have agreed on an interim approach: a fixed €3 customs duty on small consignments valued under €150, starting 1 July 2026, as an earlier step while broader customs reform is built out.
If your business model relies on small parcels shipped directly to EU consumers, these shifts affect your landed cost, pricing strategy, and compliance workflow. If you import in bulk to a warehouse (or you plan to), the changes still matter because they signal stricter data, stricter checks, and higher expectations of transparency.
Europe imports a broad mix of consumer goods, industrial inputs, and components from China. In 2026, the product groups that are most commonly sourced (and consistently in demand) include home and kitchen products, small appliances, lifestyle accessories, packaging products, furniture and décor, textiles, and a very wide range of general merchandise used by European e-commerce brands and retailers.
The reason product category matters more in Europe than many buyers expect is that the EU market emphasizes product compliance, consumer safety standards, and documentation quality. Even when your item looks "simple," you still need the right product description, the correct HS code classification, and a clear plan for VAT and customs clearance.
If your goal is long-term, repeatable importing into the EU, your best advantage is not choosing "the cheapest supplier." Your best advantage is building a process that produces consistent quality and consistent documentation.
The question "shipping from China to Europe" is really a question about speed, cost per unit, and control.
Express is popular for samples and small cartons because it is quick, the handoffs are simple, and you can test products without committing to large volumes. The drawback is cost per unit, which can crush margins if you try to scale with express shipping.
Air freight is typically used when your product is higher value, your replenishment is time-sensitive, or you want faster inventory turns. Air shipping does not eliminate customs risk. In practice, documentation mistakes cause delays regardless of shipping mode, so your invoice and packing list discipline matters just as much.
Sea freight is where most serious EU importers land once they build stable volume. LCL works when you are not ready to fill a container. FCL is usually the best for control when you have volume, because it reduces handling touchpoints and makes consolidation simpler.
Some lanes and seasons support rail freight as a middle option between air and sea. Whether it makes sense depends heavily on schedules, route reliability, and current pricing.
Your shipping plan must match your Incoterms.
EXW can look cheap on paper, but you carry responsibility from the factory gate. FOB is often preferred because the supplier handles the export-side delivery to port and export clearance, while you control the main freight and downstream customs process. DDP can feel convenient, but it often reduces transparency around duties, brokerage, and the way VAT is being handled in the destination.
In Europe, transparency is valuable because VAT handling and importer-of-record responsibilities are not "optional details." They directly shape risk and cash flow.
Europe's import costs typically come down to four things: declared customs value, duty treatment, VAT treatment, and fees (brokerage, handling, inspection, storage when delays occur).
The EU's VAT One Stop Shop website explicitly states that the VAT exemption on importation for small consignments up to €22 was removed, meaning all goods imported into the EU are subject to VAT.
This matters for two reasons. First, you should not build a pricing model that assumes "small shipments avoid VAT." Second, you need to decide how VAT will be collected and declared, because that affects customer experience (for DTC shipments) and clearance speed.
The Import One Stop Shop (IOSS) was created to simplify VAT declaration and payment for distance sales of low value goods not exceeding €150.
In simple terms, IOSS is often used in e-commerce models where goods are shipped directly to consumers, and VAT is collected at the point of sale. The benefit is reduced friction at delivery, because VAT can be handled in a structured way instead of being collected unexpectedly from the end customer.
The European Commission has published a clear update stating that parcels valued below €150 sent from a third country to a consumer in the EU are currently exempt from customs duties, and that this threshold will be removed in 2026 to level the playing field between direct parcel imports and traditional bulk retail imports.
This is a major change because many sourcing and pricing strategies were built around "low-value parcels enter duty-free." When that changes, you must re-check your landed cost math.
In December 2025, the Council of the EU announced that as of 1 July 2026, goods entering the EU in small consignments valued under €150 will be subject to a fixed €3 customs duty, and this is tied to flows where sellers are registered in IOSS for VAT.
Reuters also reported the same timing and interim €3 duty approach as part of an accelerated response to the surge in low-value parcels.
This gives importers a concrete date to plan around. If you sell into EU markets, you should plan your 2026 pricing and shipping structure with this duty scenario in mind.
Reuters reported that over 4.6 billion low-value parcels entered the EU in 2024, with a very high share coming from China, and that volume is one reason EU policymakers are accelerating reforms.
The practical meaning for importers is that EU customs authorities are under pressure. When authorities are under pressure, they prioritize better data, more automation, and stricter enforcement. If your product descriptions, values, and documentation quality are not strong, delays become more likely.
If you import into the EU as a business, you typically need an EORI number. The European Commission explains that an EORI number is mandatory for customs clearance in the EU for customs operations such as import, export, and transit.
The European Commission's Access2Markets guide also tells EU importers to apply for an EORI number and notes it is valid throughout the EU.
If you are setting up your first serious EU import program, this is one of the early "foundation" steps. Without proper importer identification, shipments can get stuck, or clearance becomes slow and expensive.
Here's the same 2026 EU VAT & Customs changes table by EJET:
|
Item |
Current Rule (before 2026) |
2026 Change |
Impact & Actionable Advice |
|
VAT |
Small imports ≤ €22 were VAT-exempt |
€22 exemption removed – all imports now subject to VAT |
Pricing models can no longer assume "small shipments avoid VAT." Decide how VAT will be collected and declared, affecting DTC customer experience and clearance speed. |
|
IOSS (Import One Stop Shop) |
Low-value B2C imports (≤ €150) could use IOSS to simplify VAT |
Still applicable, but must pair with new €3 fixed customs duty (from 1 July 2026) |
Register for IOSS, especially for e-commerce direct-to-consumer shipments. VAT collected at point of sale reduces delivery friction. |
|
Low-value Parcel Duty |
Parcels ≤ €150 were duty-free |
From 1 July 2026, parcels under €150 subject to fixed €3 duty |
Update sourcing and pricing strategies; include €3 duty in landed cost calculations. |
|
Reason for Policy Change |
Many low-value parcels entered duty-free, mostly from China |
In 2024, >4.6 billion low-value parcels entered the EU; reforms accelerate leveling the playing field |
EU customs under pressure; ensure accurate product descriptions, declared values, and documentation to avoid delays. |
|
EORI (Economic Operator Registration & Identification) |
Businesses importing into the EU require EORI |
Remains mandatory for all customs operations across the EU |
Apply for EORI early in any new EU import program; shipments without it risk delays or extra fees. |
|
Duty Calculation Process |
Duties based on HS code and declared value |
Low-value parcels: fixed €3; high-value: standard HS-based calculation |
Adjust cost calculations, shipping quotes, and customer communications for smooth clearance. |
|
Customer Experience |
Low-value parcels VAT-exempt, minimal friction |
All shipments now subject to VAT (IOSS can pre-collect) |
For DTC, display VAT at checkout to avoid unexpected charges at delivery. |
Europe is strict about who is legally responsible for import declarations, payment of duties, and VAT handling. In practice, you should decide early who the importer of record is and ensure the entity has the right registrations and numbers for customs and VAT.
Operationally, this matters because your supplier can produce the product, but they cannot "fix" customs responsibility for you once the cargo is in transit. That responsibility needs to be designed into the plan before production begins.
Europe-bound sourcing rewards buyers who prioritize supplier reliability and documentation discipline.
Wholesale sites are useful for discovery and price comparison. The risk is assuming that a listing equals a real factory with stable quality systems. If you want fewer EU compliance surprises, your supplier verification should include: legitimacy checks, export capability confirmation, consistent sampling, packaging and labeling capability, and proof that the supplier can follow specifications precisely.
If you are selling in EU markets, consistent labeling and documentation are not "nice to have." They directly impact clearance and consumer trust.
If your focus is variety and fast product discovery, Yiwu is often used as a practical hub for general merchandise sourcing. If your focus is OEM/ODM or manufacturer relationships, major trade fairs can be stronger.
The winning approach is usually: discover quickly, then verify deeply. Many importers waste money by trying to scale after a single conversation and a single sample. In Europe, that often translates into higher return rates, chargebacks, and compliance headaches.
If you can't be on the ground in China, a sourcing agent reduces two major risks: selecting the wrong supplier and receiving inconsistent quality.
EJET's service intro describes an end-to-end approach that includes supplier sourcing, factory audits, sample coordination, order follow-up, quality inspection, warehousing and consolidation, export documentation, shipping coordination, and after-sales support.
For Europe buyers, the value of this support is often in the details: better supplier screening, earlier correction of packaging and labeling issues, and inspection-based quality control before goods are shipped.
If you want EJET to verify suppliers, coordinate inspections, and help you land goods into EU destinations with clean documentation, get a free quote for sourcing from China to Europe.
A Europe-ready product file should include materials, dimensions, tolerances, packaging requirements, and clear acceptance standards. If you don't define these, suppliers fill in the gaps themselves, and you receive inconsistent outputs.
In Europe, HS code choice affects duty planning. Compliance expectations affect whether you need testing, declarations, or special labeling. If you handle this after production, you risk delays, re-labeling costs, or rejected shipments.
A single sample is not proof that mass production will match. Sampling rounds help you align expectations. A pre-production sample can prevent "we changed a component without telling you" surprises.
Pre-shipment inspection catches defects before your goods are locked inside a container. This is especially important for EU markets where returns can be expensive and marketplace penalties can be painful.
If you source multiple SKUs or multiple suppliers, consolidation reduces shipping cost per unit and reduces document complexity. In an environment where EU customs authorities are dealing with massive parcel volumes and tighter enforcement, reducing complexity is a competitive advantage.
If you sell DTC parcels into the EU, factor in the removal of the €150 duty exemption and the interim €3 duty from 1 July 2026.
If you import in bulk to an EU warehouse, these changes still matter because they signal a stronger compliance environment overall.
Yes, but the process matters more. The EU's changes around low-value parcels and stronger customs enforcement mean you must plan compliance, data quality, and landed cost carefully.
Yes. The EU VAT One Stop Shop portal explains the old €22 VAT exemption was removed and all imported goods are subject to VAT.
IOSS simplifies VAT declaration/payment for distance sales of low value goods not exceeding €150 imported into the EU.
The European Commission states the €150 customs duty exemption threshold will be removed in 2026.
The Council of the EU states a fixed €3 duty will apply to small consignments under €150 as of 1 July 2026, and Reuters reported the same date and approach.
The European Commission explains an EORI number is mandatory for customs clearance in the EU, and Access2Markets advises EU importers to apply for one.
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