With more than 90% of small parcels entering the EU from China, the proposed measure seeks to streamline customs processes and ensure compliance with safety standards.
**EU Proposes New Tax on Small Parcels Affecting Retail Giants Shein and Temu**
**EU Proposes New Tax on Small Parcels Affecting Retail Giants Shein and Temu**
The European Union aims to introduce a two-euro fee on small parcels, primarily impacting Chinese e-commerce platforms amid rising trade tensions.
In a significant shift for international shipping regulations, the European Union has put forth a proposal to impose a two-euro flat fee on billions of small parcels delivered directly to consumers' homes. This change primarily targets e-commerce platforms from China, such as Shein and Temu, which have become popular among European shoppers. Currently, packages valued at less than 150 euros (£126) escape customs fees, but under the new regulations, they will no longer be customs-free.
EU Trade Commissioner Maros Sefcovic emphasized the need for this proposed tax, citing the staggering 4.6 billion small parcels that entered the EU last year, over 90% of which originated from China. He explained that this influx has placed a considerable burden on EU customs officials and made it challenging to ensure that the goods entering the digital market meet existing safety and quality standards. By implementing this fee, Brussels aims to offset the associated administrative costs and bolster the EU budget with the revenue generated.
The new two-euro fee will apply specifically to parcels sent directly to consumers, while those consigned to warehouses will incur a reduced tax of 0.50 euros (£0.42). This European move mirrors recent actions taken by the US government, which has also introduced tariffs on small packages coming from China under President Donald Trump's administration, with significant adjustments made following trade negotiations.
Retailers within Europe have previously voiced their concerns about competing against foreign e-commerce platforms. They claim that companies like Shein and Temu do not comply with the EU's stringent product standards, giving them an unfair advantage. In response, both Shein and Temu have expressed their willingness to collaborate with EU regulators to ensure consumer safety and product compliance.
As the regulations evolve, both Shein and Temu have significantly expanded their customer bases in the EU, each boasting impressive user numbers—92 million for Temu and over 130 million for Shein. The landscape of international commerce in Europe is rapidly changing as the EU reviews existing tax-exemption rules, indicating a more stringent approach towards low-value international shipments.
EU Trade Commissioner Maros Sefcovic emphasized the need for this proposed tax, citing the staggering 4.6 billion small parcels that entered the EU last year, over 90% of which originated from China. He explained that this influx has placed a considerable burden on EU customs officials and made it challenging to ensure that the goods entering the digital market meet existing safety and quality standards. By implementing this fee, Brussels aims to offset the associated administrative costs and bolster the EU budget with the revenue generated.
The new two-euro fee will apply specifically to parcels sent directly to consumers, while those consigned to warehouses will incur a reduced tax of 0.50 euros (£0.42). This European move mirrors recent actions taken by the US government, which has also introduced tariffs on small packages coming from China under President Donald Trump's administration, with significant adjustments made following trade negotiations.
Retailers within Europe have previously voiced their concerns about competing against foreign e-commerce platforms. They claim that companies like Shein and Temu do not comply with the EU's stringent product standards, giving them an unfair advantage. In response, both Shein and Temu have expressed their willingness to collaborate with EU regulators to ensure consumer safety and product compliance.
As the regulations evolve, both Shein and Temu have significantly expanded their customer bases in the EU, each boasting impressive user numbers—92 million for Temu and over 130 million for Shein. The landscape of international commerce in Europe is rapidly changing as the EU reviews existing tax-exemption rules, indicating a more stringent approach towards low-value international shipments.
