EU Proposes €2 Fee on Low-Value Parcels, Posing Challenge for Shein and Temu
The European Union is preparing to introduce a €2 ($2.27) handling fee on low-value e-commerce parcels entering the bloc, a move that could significantly impact fast-growing Chinese platforms like Shein and Temu. The measure is aimed at addressing a surge in online orders and leveling the playing field for European retailers.
In 2024, EU customs authorities processed 4.6 billion low-value parcels — double the figure from 2023 — with 91% arriving from China. The proposed fee, still pending approval by EU member states and the European Parliament, would be paid by the online retailers, not by consumers.
The European Commission said the fee would help fund compliance checks on the flood of packages, including regulations around toy safety and consumer protections. A smaller fee of €0.50 is also proposed for goods processed through EU-based warehouses, potentially favoring global firms with advanced logistics over smaller retailers.
“It’s fair to ask Alibaba, Temu, or Shein to pay their fair share,” said Bernd Lange, Chair of the European Parliament’s trade committee. He noted the burden these shipments place on customs authorities and the need for proper enforcement.
France has already voiced support for the measure, while the EU had previously announced plans to end the duty-free status of goods under €150 — but not until 2028.
Reactions from European retailers have been largely supportive. Zalando welcomed the proposal and called for fast-tracking the removal of the €150 customs exemption. Germany’s HDE retail association also endorsed the fee as a step toward curbing unfair competition.
However, concerns remain. Allegro, a leading Polish e-commerce platform, warned that the €0.50 fee for goods processed in EU warehouses might unintentionally benefit larger global players, while smaller firms would bear the full €2 cost. “The implementation details will be crucial,” said Allegro’s regulatory manager Ewelina Stepnik-Godawa.
Chinese companies have yet to respond, though China’s foreign ministry urged the EU to maintain a “fair, transparent and non-discriminatory” environment for Chinese businesses.
The proposal comes just weeks after the U.S. scrapped its own de minimis rule allowing duty-free entry for goods under $800, reflecting a broader global shift toward tighter e-commerce trade regulation.
