EU Introduces €2 Fee on Small Parcels, Targeting E-Commerce Giants

The EU aims to regulate the influx of small packages from China and support local market fairness through a two-euro fee on direct-to-consumer shipments.

The European Union has unveiled plans to impose a two-euro fee on billions of small parcels shipped directly to consumers, a measure primarily affecting e-commerce giants from China such as Shein and Temu. According to EU Trade Commissioner Maros Sefcovic, this new tax will apply to packages valued under 150 euros (£126), which will no longer enjoy customs-free entry.

Last year alone, the EU received 4.6 billion of these parcels, with over 90% sourced from China. This surge in volume has placed significant strains on EU customs officials, who struggle to ensure that safety and quality standards are upheld for goods entering the market. The proposed charge aims to "compensate the cost" of regulating these influxes while contributing to the EU budget, Sefcovic stated during a session in the European Parliament.

The fee structure specifies that packages sent directly to customers will incur the full two-euro fee, while those bound for warehouses will be subject to a lower rate of 0.50 euros (£0.42). This initiative follows similar tariff adjustments made by the United States during Donald Trump's presidency, which included a flat fee on lower-value items imported from China.

Concerns have risen that this fee might prompt Chinese e-commerce companies to flood European markets with low-cost goods originally intended for the U.S. market, potentially overwhelming local retailers. European businesses have long argued that such foreign competitors circumvent EU product standards, undermining fair competition.

Despite these apprehensions, both Shein and Temu have expressed their willingness to work alongside regulators to meet consumer standards. With reports indicating that Temu boasts 92 million users in the EU and Shein claiming over 130 million, their market presence is significant.

Previously, e-commerce platforms like Shein and Temu benefited from the "de minimis" exemption, allowing low-value shipments to bypass duties and taxes for U.S. consumers. With this exemption under review globally, the landscape for cross-border e-commerce could undergo significant changes, prompting further scrutiny on how these giants operate in international markets.