**EU Introduces €2 Fee for Small Parcel Deliveries Impacting Shein and Temu**

EU plans to address the surge in small parcel shipments significantly affecting online retailers and customs processing.

The European Union (EU) is set to implement a flat €2 fee on billions of small parcels sent directly to consumers, a move that targets major online marketplaces, particularly from China, such as Shein and Temu. This proposed tax would eliminate the customs-free status for packages valued at less than €150 (£126), indicating a significant policy shift aimed at addressing the overwhelming volume of incoming shipments.

EU Trade Commissioner Maros Sefcovic highlighted that last year alone, approximately 4.6 billion small parcels entered the EU, with over 90% originating from China. He emphasized that this influx has burdened EU customs personnel and raised concerns regarding the safety and standards of the goods entering the bloc. The new fee, he argues, will help cover some of the associated costs and contribute to the EU's budget.

While the €2 charge is targeted at packages shipped directly to consumers, parcels sent to warehouses will incur a lesser fee of €0.50 (£0.42). This proposal follows similar recent tariff measures in the United States under the previous administration, which introduced a flat fee structure on small packages.

The move has raised concerns that Chinese marketplaces might flood the European market with inexpensive goods, especially as they adapt to reduced U.S. tariffs. European retailers have previously voiced grievances over the unfair competition posed by foreign competitors who do not abide by EU's stringent product standards.

Both Shein and Temu have expressed a commitment to collaborate with EU regulations and adhere to consumer safety standards. Notably, Temu boasts 92 million users within the EU, whereas Shein reports a user base exceeding 130 million. Both companies had earlier benefited from the "de minimis" exemption in the U.S., allowing low-value items to be shipped without incurring additional duties or taxes. This new development may lead to significant changes in the operational landscape for these e-commerce giants moving forward.