The European Union has unveiled a proposal to implement a flat fee of two euros on billions of small parcels delivered directly to consumers, a significant majority of which currently originate from China. This initiative signifies a shift in customs policy, as packages valued at less than 150 euros (£126) would no longer enjoy customs exemptions.
Impacts on Online Marketplaces
EU Trade Commissioner Maros Sefcovic indicated that the new fee would apply to major online platforms, particularly highlighting the obligations for Chinese e-commerce giants like Temu and Shein to comply. Last year, around 4.6 billion such parcels entered the EU, with more than 90% of them coming from China, thus intensifying the workload for EU customs officials.
Sefcovic emphasized that the sheer volume of parcels has made it increasingly challenging to ensure that the safety and standards of goods entering the EU are adequately monitored. He stated that the proposed fee would “compensate the cost” of customs operations and expressed hopes that a portion of the revenue generated would contribute to the EU budget.
Fee Structure and Comparisons with US Tariffs
The two-euro fee would specifically target packages dispatched directly to consumers, whereas parcels sent to warehouses would incur a lower fee of 0.50 euros (£0.42). This move aligns with a broader trend observed in international trade, particularly following the introduction of new tariffs on Chinese goods in the United States during President Donald Trump’s administration, which also included a fee on small packages.
Recent negotiations in the US led to a reduction of the tariff on small packages valued at up to $800 (£606) from 120% to 54%. Nevertheless, a flat fee of $100 per parcel continues to apply. There are concerns that Chinese e-commerce giants may flood the European market with low-cost goods, as products intended for the US could be redirected to Europe.
European retailers have previously voiced their frustrations regarding competition from foreign firms, arguing that these companies do not adhere to the EU’s stringent product standards. Both Shein and Temu have indicated their willingness to collaborate with regulators to meet consumer safety standards, with Temu claiming to have 92 million users in the EU and Shein reporting over 130 million users.
Before the imposition of US tariffs, platforms such as Shein and Temu benefitted from the “de minimis” exemption, enabling them to ship low-value items directly to customers in the US without incurring duties or import taxes.