The European Union (EU) has unveiled a significant initiative: a two-euro flat fee on small parcels sent directly to consumers, predominantly from Chinese e-commerce platforms such as Shein and Temu. Under the new regulations, parcels valued under 150 euros (£126) will no longer enjoy customs exemption, placing a financial burden on online retailers competing in the EU market.
EU Trade Commissioner Maros Sefcovic detailed the necessity of this fee before the European Parliament, stating that last year, approximately 4.6 billion small parcels entered the union, with over 90% originating from China. This influx has resulted in a substantial workload for customs officials, complicating the enforcement of product safety and quality standards. The proposed tax aims to defray these costs while also contributing to the EU's financial resources.
Distinguishing between types of shipments, the two-euro fee will apply to individual packages sent directly to consumers, while shipments to warehouses will be subjected to a reduced fee of 0.50 euros (£0.42). This resolution comes in the wake of recent changes to U.S. tariffs on Chinese goods, which were initially much higher.
Concerns have emerged that with revised tariffs, e-commerce giants might redirect their cheap goods to the European market, exacerbating competition for local retailers who argue that foreign competitors evade strict EU regulations. Both Shein and Temu have committed to adhering to European regulations and consumer standards.
Shein boasts over 130 million users in the EU, while Temu reports 92 million, both benefiting from shipping policies that previously allowed tax-free parcel deliveries. This policy landscape is undergoing scrutiny, especially in light of the evolving international trade dynamics.
