The European Union is set to implement a flat fee of €2.00 on small packages primarily imported from China, targeting online retailers such as Temu and Shein.

As part of this new tax, packages valued under 150 euros will no longer be customs-free, according to EU Trade Commissioner Maros Sefcovic.

Anna Cavazzini, chair of the EU Parliament's Internal Market Committee, noted that the current customs and market surveillance system was not equipped to handle the increasing volume of low-value packages from these online platforms.

Sefcovic emphasized the necessity for enhanced controls to ensure that imported products meet safety standards and do not pose risks to consumers.

This decision reflects the EU's ongoing efforts to create a more level playing field for local businesses against foreign competition, particularly in light of complaints from EU retailers.

France has been a strong advocate for imposing management fees on small parcels, having received around 800 million such packages last year, and is pushing for a handling fee for non-EU online sellers.

The introduction of this handling fee aims to address the influx of small packages that have contributed to trade imbalances and disruptions in the domestic market.

The €2 fee is intended to cover the increased workload for customs authorities due to the rising volume of low-value imports, which have overwhelmed customs operations.

Additionally, the EU plans to eliminate its customs duty exemption and require online platforms selling such products to register for VAT, enhancing quality control.

Revenue generated from this fee will support European customs agencies managing the increased volume of shipments and contribute to the EU budget.

Sefcovic announced this initiative during a session in the European Parliament, emphasizing that e-commerce platforms will be responsible for paying the fee per parcel.

This measure is part of broader regulatory changes aimed at enhancing trade fairness and consumer protection within the EU.