The European Union is considering imposing a processing fee of 2 euros (approximately 2.27 dollars) on low-cost e-commerce parcels imported into the region, according to a report from Reuters on Wednesday, May 21. This move could potentially impact major Chinese e-commerce platforms such as Shein and Temu, which heavily rely on small parcels to dominate the market.
EU Trade Commissioner Maroš Šefčovič explained to the European Parliament on Tuesday that the proposal aims to address the regulatory challenges brought about by the influx of cheap goods from China. In 2024, the EU processed around 46 million low-cost parcels, with 91% originating from China, doubling from the previous year.
The European Commission announced in February this year that starting from 2028, the duty-free treatment for parcels valued below 150 euros will be revoked, and the feasibility of imposing processing fees will be evaluated separately. The proposal still needs to be reviewed and approved by EU member states and the European Parliament, with France being the first to express support.
According to the draft proposal, a processing fee of 2 euros per parcel will be charged if the parcel is directly delivered to the consumer; if it is transshipped through warehouses within the EU, the fee will be reduced to 0.5 euros. The EU stated that the costs will be paid by the e-commerce platforms for conducting product safety and compliance checks, without passing the burden onto consumers.
Bernd Lange, Chair of the European Parliament’s Trade Committee, stated, “Inspecting just 46 million parcels comprehensively is challenging, thus making companies like Alibaba, Temu, and Shein pay reasonable fees is a fair move.”
Alibaba, Shein, and Temu have not responded to Reuters’ requests for comments yet. The Chinese Ministry of Foreign Affairs has accused the EU of discriminating against Chinese companies.
The United States has already taken the lead this month in canceling its de minimis policy, ending tax-free imports for goods below 800 dollars.
European retailers have long criticized the current policies for leading to unfair competition. E-commerce platform Zalando expressed support for the processing fee plan and urged the EU to swiftly remove the duty-free threshold. Stephan Tromp, Deputy General Manager of the German Retail Association, also noted, “The processing fee is part of addressing unfair competition, but the 150 euro duty-free threshold should also be abolished simultaneously.”
While the largest fast fashion brand in Europe, Zara’s parent company Inditex, has not issued a comment, CEO Oscar Garcia Maceiras stated in a recent BBC interview that he supports the removal of duty-free treatment, emphasizing the need to create a “fair competition environment.”