The European Union has unveiled a proposed two-euro tax on billions of small parcels shipped directly to consumers' homes, a decision primarily aimed at raising revenue and regulating online retailers, notably Chinese companies like Shein and Temu. Under the new plan, items valued at less than 150 euros (£126) will no longer enjoy customs-free entry, with the expectation that major online marketplaces will shoulder the added costs.
EU Trade Commissioner Maros Sefcovic highlighted the overwhelming number of parcels entering the region—4.6 billion last year, 90% of which originated from China—and stressed the challenges faced by customs authorities in monitoring the safety and compliance of goods arriving in the EU. He described the fee as a measure to "compensate the cost" incurred by customs operations. Additionally, the EU anticipates that the revenue generated will enhance its budget.
The proposed fee would apply specifically to packages sent to individual consumers, while those directed to warehouses would incur a lower tax of 0.50 euros (£0.42). This initiative aligns with the U.S. tariffs imposed on Chinese imports under the Trump administration, which also enacted fees on small packages. Recent U.S. negotiations have adjusted the tariff on small shipments worth up to $800 (£606) to 54%, down from 120%, although a flat fee of $100 remains in place.
Concerns have been raised about potential flooding of the European market with inexpensive goods from Chinese e-commerce giants that might have previously been intended for the U.S. market. European retailers have long argued that they face uneven competition from overseas sellers, who often bypass rigorous EU product standards. Both Shein and Temu have expressed their willingness to cooperate with regulatory standards, with the former boasting over 130 million users and the latter reportedly reaching 92 million customers in the EU.
Prior to the introduction of U.S. tariffs, these platforms benefited from the "de minimis" exemption, allowing them to ship low-value items to customers without incurring duties or taxes. As policies continue to evolve, scrutiny on tax-free shipments from companies like Shein and Temu is set to increase in the EU.
EU Trade Commissioner Maros Sefcovic highlighted the overwhelming number of parcels entering the region—4.6 billion last year, 90% of which originated from China—and stressed the challenges faced by customs authorities in monitoring the safety and compliance of goods arriving in the EU. He described the fee as a measure to "compensate the cost" incurred by customs operations. Additionally, the EU anticipates that the revenue generated will enhance its budget.
The proposed fee would apply specifically to packages sent to individual consumers, while those directed to warehouses would incur a lower tax of 0.50 euros (£0.42). This initiative aligns with the U.S. tariffs imposed on Chinese imports under the Trump administration, which also enacted fees on small packages. Recent U.S. negotiations have adjusted the tariff on small shipments worth up to $800 (£606) to 54%, down from 120%, although a flat fee of $100 remains in place.
Concerns have been raised about potential flooding of the European market with inexpensive goods from Chinese e-commerce giants that might have previously been intended for the U.S. market. European retailers have long argued that they face uneven competition from overseas sellers, who often bypass rigorous EU product standards. Both Shein and Temu have expressed their willingness to cooperate with regulatory standards, with the former boasting over 130 million users and the latter reportedly reaching 92 million customers in the EU.
Prior to the introduction of U.S. tariffs, these platforms benefited from the "de minimis" exemption, allowing them to ship low-value items to customers without incurring duties or taxes. As policies continue to evolve, scrutiny on tax-free shipments from companies like Shein and Temu is set to increase in the EU.
