The European Union is planning to impose handling fees on tens of millions of small packages entering the region, mainly targeting packages from China. This move is expected to impact Chinese e-commerce platforms such as Temu and Shein.
According to a report from the Financial Times, the European Commission released a draft proposal on Monday (May 19) regarding the standardization of fees for small packages. Customs authorities in member countries have been struggling with the overwhelming influx of Chinese import packages.
On Tuesday (May 20), European Trade Commissioner Maroš Šefčovič addressed the Internal Market and Consumer Protection Committee of the European Parliament, promising to address the surge in package volume. He mentioned that this phenomenon has led to an increase in dangerous and non-compliant goods, prompting complaints from EU retailers about unfair competition.
Šefčovič emphasized the key role of customs as guardians of the single market. He mentioned reforms such as the establishment of the EU Customs Agency, the EU Customs Data Center, and the imposition of processing fees on e-commerce platforms as measures to strengthen supervision, streamline processes, and ensure fair competition to tackle these challenges.
The European Commission announced in February the cancellation of the policy exempting import small-value packages below 150 euros from customs duties. The Commission stated that in 2024, 46 million low-value goods were imported into the EU, with an average of 12 million packages per day, 91% of which were from China, marking a doubling from the previous year.
Although the draft has not specified the exact rate, sources familiar with the European Commission’s thinking indicate a fee of around 2 euros.
Some of the funds will cover customs costs, while the remainder will be included in the EU budget, projecting an increase of several billion euros in revenue annually.