Prime Highlights:

The European Union will charge a €2 tax on small parcels into the block, and it’s targeted at low-value shipments from China’s e-commerce websites such as Shein and Temu.

The move is aimed at preventing the huge volume of parcels and forcing them to adhere to EU safety and quality standards.

Key Facts:

There were 4.6 billion small parcels into the EU in 2024, and more than 90% came from China.

The new charge will be imposed on packages valued under €150, which are exempt from paying customs.

Key Background:

The European Union is also introducing a new €2 tax on low-value parcels with a value of less than €150 entering its member states. The move is primarily aimed at addressing the huge quantity of low-value shipments, predominantly from Chinese online retailers, which have increased to 4.6 billion parcels in 2024. More than 90% of these shipments are arriving from China, which is putting enormous pressure on EU customs authorities to process and monitor such goods effectively.

Some of these parcels are already subject to the “de minimis” regime under which goods under a specified level are imported into the EU duty- and tax-free. The new fee would remove this exemption to enable the EU to better track product safety, quality, and environmental standards compliance. An additional parallel fee of €0.50 for warehouse parcels is also suggested with reduced customs handling for bulk parcels.

The policy is in reaction to pressure applied by European traders who insist that foreign providers, and specifically China, gain an unfair benefit by bypassing customs charges and regulatory inspections. The new policy also follows bigger markets, including the United States, in attempting to level the playing field for local firms.

Chinese e-retailers Shein and Temu also have a considerable foothold in the EU marketplace, boasting user bases of 130 million and 92 million respectively. The two businesses have already indicated willingness to collaborate with the new regulation. In general, the action by the EU indicates its desire to uphold equitable trade practices, support consumers, and uphold the integrity of its single marketplace.

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