In a significant regulatory move, the European Union (EU) has proposed the implementation of a €2 flat fee on small parcels sent directly to consumers. This change primarily targets a substantial number of shipments from China, as the EU's customs system has been strained under the influx of low-value parcels. Last year alone, around 4.6 billion such parcels were received, with over 90% originating from Chinese companies, including e-commerce platforms Temu and Shein.
EU Trade Commissioner Maros Sefcovic articulated the rationale behind the new tax during a session at the European Parliament, highlighting that the volume of packages had created an immense workload for customs staff and posed challenges to safety and product standard checks. By introducing this fee, the EU aims to offset the costs associated with managing these parcels while also generating revenue for the EU budget.
The proposed fee structure outlines that packages worth less than €150 (£126) will incur the full €2 charge, while those sent to warehouses will be taxed at a reduced rate of €0.50 (£0.42). This initiative follows a recent trend in global trade, mirroring the United States' tariffs on similar shipments. In the U.S., previous tariffs were revised, yet a flat fee remains in effect, raising concerns about a potential overflow of goods into the European market.
European retailers have long voiced concerns regarding competition from international e-commerce giants that do not adhere to the EU’s rigorous product standards. In light of these developments, Shein and Temu have publicly committed to complying with regulatory requirements, with Temu reportedly boasting 92 million users in the EU, and Shein claiming over 130 million.
This scrutiny into parcel shipments emerged as both platforms previously took advantage of the "de minimis" exemption, allowing low-value goods to enter the U.S. without incurring tariffs. As beliefs surface surrounding the likelihood of these Chinese companies bolstering their presence in Europe, the proposed €2 fee marks a crucial shift in how the EU manages international e-commerce and its competitive landscape.
