In brief
In an effort to address the surge of small parcel shipments entering Europe from China, the EU has proposed a new two-euro flat fee on packages valued under 150 euros. EU Trade Commissioner Maros Sefcovic highlighted that this policy aims to lighten the considerable workload imposed on customs staff dealing with approximately 4.6 billion parcels received last year, with over 90% originating from China.
The proposal specifies that direct-to-consumer shipments will incur the higher fee, while shipments to warehouses will face a reduced fee of 0.50 euros. This tax is seen as a way to enhance revenue for the EU budget while also ensuring better compliance with safety standards for products entering the region. The move reflects broader concerns over competition, as European retailers have voiced their grievances about unfair practices from overseas marketplaces. In light of recent U.S. tariffs on Chinese goods that include a fee on small packages, the EU's decision notably aligns with a global shift towards stricter trade regulations. Both Shein and Temu have indicated their willingness to comply with upcoming regulations, with Temu boasting 92 million users in the EU and Shein declaring 130 million users. Previously, both platforms benefitted from "de minimis" exemptions allowing them to ship low-value items duty-free to customers, a situation now under review as standard compliance measures come into focus.
