The European Union has introduced a flat fee of €2 on small parcels entering its market, primarily affecting direct shipments from China.
EU's New €2 Fee Targets Rising Small Parcel Shipments from China
EU's New €2 Fee Targets Rising Small Parcel Shipments from China
The proposed fee aims to regulate e-commerce giants like Shein and Temu, amid rising concerns over consumer safety.
The EU has announced a new flat fee of €2 on billions of small parcels shipped directly to consumers, principally impacting online marketplaces from China like Shein and Temu. EU Trade Commissioner Maros Sefcovic highlighted that this fee applies to packages under a value of €150 (£126), which means they will no longer be exempt from customs duties. Last year alone, the EU processed approximately 4.6 billion such parcels, with over 90% originating in China, leading to a substantial burden on customs personnel.
Sefcovic emphasized the new fee is intended to offset administrative costs and facilitate thorough inspections of goods entering the EU. The European Parliament was informed that this move would also contribute revenue towards the EU budget. Notably, the fee will only apply to parcels sent directly to consumers, while shipments directed to warehouses will face a reduced fee of €0.50 (£0.42).
This development mirrors the U.S. approach under former President Trump's administration, which has implemented tariffs on small packages from China. Following recent adjustments in negotiations, the U.S. has lowered tariffs on small packages valued up to $800 (£606) from 120% to 54%, although a substantial flat fee remains in place.
The EU's decision is partly driven by concerns about a potential influx of inexpensive goods from Chinese retailers, which may threaten local businesses by selling products that do not meet stringent EU safety and quality standards. Shein and Temu have committed to working with regulators to align with European consumer protections. According to reports, Temu currently has about 92 million users in the EU, whereas Shein boasts over 130 million.
Before the U.S. tariffs were enacted, both companies had benefited from the "de minimis" rule, which allowed low-value items to be shipped without incurring duties or import taxes into the U.S. As global trade continues to evolve, scrutiny over international e-commerce practices is intensifying.
Sefcovic emphasized the new fee is intended to offset administrative costs and facilitate thorough inspections of goods entering the EU. The European Parliament was informed that this move would also contribute revenue towards the EU budget. Notably, the fee will only apply to parcels sent directly to consumers, while shipments directed to warehouses will face a reduced fee of €0.50 (£0.42).
This development mirrors the U.S. approach under former President Trump's administration, which has implemented tariffs on small packages from China. Following recent adjustments in negotiations, the U.S. has lowered tariffs on small packages valued up to $800 (£606) from 120% to 54%, although a substantial flat fee remains in place.
The EU's decision is partly driven by concerns about a potential influx of inexpensive goods from Chinese retailers, which may threaten local businesses by selling products that do not meet stringent EU safety and quality standards. Shein and Temu have committed to working with regulators to align with European consumer protections. According to reports, Temu currently has about 92 million users in the EU, whereas Shein boasts over 130 million.
Before the U.S. tariffs were enacted, both companies had benefited from the "de minimis" rule, which allowed low-value items to be shipped without incurring duties or import taxes into the U.S. As global trade continues to evolve, scrutiny over international e-commerce practices is intensifying.
