The European Union has unveiled a proposal that would impose a flat fee of two euros on billions of small parcels shipped directly to consumers' homes, largely originating from China. This initiative is a significant shift in customs policy, as it means that packages valued at less than 150 euros (£126) will no longer be exempt from customs fees. EU Trade Commissioner Maros Sefcovic articulated that the new tax is expected to be paid by major online marketplaces, specifically targeting Chinese e-commerce platforms like Shein and Temu.
Last year, approximately 4.6 billion parcels entered the European market, with a staggering 90% of these shipments coming from China. According to Sefcovic, the overwhelming volume of these parcels has placed an immense burden on EU customs operations, complicating efforts to ensure that imports meet safety standards and regulatory compliance. He emphasized that the introduction of this fee would help "compensate the cost" associated with handling these packages, while also generating additional revenue for the EU budget.
Under the proposed plan, the two-euro fee will apply to parcels sent directly to consumers. Conversely, packages sent to warehouses would be subject to a reduced tax rate of 0.50 euros (£0.42). This regulatory maneuver resonates with the context of the United States’ recent tariff changes on Chinese goods during President Donald Trump's tenure, which also included a fee on small parcel shipments. After recent negotiations, the US revised the tariff on packages valued up to $800 (£606) down to 54% from the previous 120%, while still maintaining a flat fee of $100.
Concerns have emerged regarding the potential market flood from Chinese e-commerce giants into Europe, particularly with goods originally aimed at the US market being redirected elsewhere. European retailers have long contended that they face considerable competitive disadvantages against overseas rivals, who may neglect to adhere to the EU’s stringent product standards. In response to rising scrutiny, both Shein and Temu have expressed their willingness to collaborate with regulators to meet consumer protection expectations.
As a major player in the European market, Temu claims to serve 92 million users while Shein announces a user base exceeding 130 million. This latest move signifies a pivotal change as it re-evaluates the previous "de minimis" exemption that allowed low-value items to be shipped into the US without incurring duties or import taxes. The EU's efforts to reshape its customs policies reflect an overarching goal to fortify local businesses and maintain regulatory integrity in a rapidly evolving global trade landscape.
