EU Trade Commissioner Maros Sefcovic announced a €2 tax on small parcels worth under €150, impacting billions of shipments, particularly from Chinese firms like Shein and Temu. The fee aims to manage customs workloads and support EU standards.
EU Introduces €2 Fee on Small Parcels, Impacting Chinese E-Commerce Giants
EU Introduces €2 Fee on Small Parcels, Impacting Chinese E-Commerce Giants
The European Union's new proposal for a flat €2 fee on small parcels aims to regulate an influx of shipments from China, affecting popular platforms like Shein and Temu.
The European Union has unveiled a significant policy shift, proposing a two-euro flat fee on billions of small parcels shipped directly to consumers' homes. This is a direct response to the increasing volume of packages, primarily from China, which currently comprise over 90% of the total 4.6 billion small parcels entering the EU each year. Trade Commissioner Maros Sefcovic emphasized that the fee is essential to offset the substantial workload faced by EU customs officials, who oversee the safe and regulated entry of goods into the bloc.
The new charge will apply to packages valued below €150, effectively eliminating their previous customs-free status. Sefcovic articulated that the revenue generated from this fee could also contribute to the EU budget, alleviating financial pressures resulting from managing these massive import volumes. Furthermore, parcels sent to warehouses will incur a lower fee of 0.50 euros, establishing a tiered approach to taxation.
This decision follows the United States' previous implementation of tariffs on Chinese goods, which were recently amended. European online retailers have voiced concerns over the competitive edge that such e-commerce giants gain through preferential shipping regulations, arguing that they undermine the EU's stringent product safety standards. Notably, Shein and Temu boast substantial user bases in Europe, with 130 million and 92 million users respectively, and have pledged to adhere to regulatory standards moving forward.
The introduction of the €2 fee sets a new precedent in the EU’s approach to global e-commerce, directly addressing concerns over market flooding with low-cost items and emphasizing the need for equitable competition among European retailers.
