Overview

• The European Commission has introduced a draft proposal to impose a €2 fee per low-value package directly shipped to the EU, with a €0.50 fee for items sent to warehouses.
• The measure seeks to address the challenges posed by the 4.6 billion parcels imported annually, primarily from China, which strain customs operations and raise product safety concerns.
• Revenue from the proposed fees would help fund enhanced customs controls, with remaining funds allocated to the EU budget.
• The proposal follows a postponement by EU finance ministers on eliminating VAT and tariff exemptions for goods under €150, deferring discussions to broader customs reform talks.
• Platforms like Shein and Temu are expected to face significant cost increases if the fees are implemented, impacting low-cost e-commerce retailers.