EU plans €2 fee on small parcels entering bloc through e-com websites

The new tax implies packages worth less than €150 are no longer customs-free.

EU trade commissioner Maroa Sefcovic recently told the European Parliament he had proposed a handling fee to deal with the challenges of the 4.6 billion items annually imported directly to homes.

Part of revenue generated would cover the cost of extra customs checks, while the rest will be directed to the EU budget, European media outlets reported.

Items sent to warehouses will, however, be taxed at €0.50, the draft proposal of the European Commission says.

Online marketplaces, including Chinese giants Temu and Shein, would be expected to pay the fee, said Sefcovic. Temu says it has 92 million users in the EU, while Shein has said it has over 130 million.

Last year, 4.6 billion such parcels entered the EU, with more than nine-tenths coming from China.

European retailers had earlier complained that they face unfair competition with overseas competitors, who they argue do not comply with the EU's strict product standards.

Fibre2Fashion News Desk (DS)