In a significant shift for e-commerce, the European Union has announced plans to introduce a €2 flat fee on small parcels sent directly to consumers, particularly targeting goods from China. This proposal aims to tackle the massive influx of online shopping packages and ensure better customs regulation. According to EU Trade Commissioner Maros Sefcovic, parcels valued under €150 will no longer be exempt from customs duties, which means that online retail giants like Shein and Temu will be affected by this new tax.
Last year, the EU was inundated with approximately 4.6 billion small parcels, with over 90% originating from China. Sefcovic explained that this overwhelming volume has created significant challenges for customs agents in inspecting overall safety and quality standards of incoming products. He noted that the proposed fee would help "compensate the cost" incurred by customs and hopes it would contribute to the overall EU budget as well.
The €2 fee is specifically targeting parcels sent directly to consumers, while goods shipped to warehouses will incur a lower tax rate of €0.50. This regulatory change contrasts with the U.S. tariffs established during Donald Trump's presidency, which have subjected various Chinese goods to additional fees.
Concerns have arisen regarding the potential for Chinese firms to flood the European market with low-cost products that may not meet existing EU safety regulations, which European retailers have complained about in the past. Industry leaders stress that importers must comply with stringent standards that overseas competitors often evade.
Both Shein and Temu have expressed willingness to cooperate with regulators regarding these standards. Temu claims to have 92 million users across the EU, while Shein reports a user base of over 130 million. The future of tax-free parcel rules for these companies is now under review, reflecting ongoing adjustments within the global e-commerce landscape.
