Wednesday, May 21, 2025

END OF CHEAP PARCELS FROM TEMU AND SHEIN? EU WANTS A FIXED CHARGE OF €2

 Filenews 21 May 2025



The European Union plans to impose a single end to the billions of small packages entering the bloc, mostly from China, the Financial Times reported on Tuesday, citing a proposal in an attempt to hurt online retailers such as Temu and Shein.

BRUSSELS (Reuters) - The European Commission on Monday released a draft proposal on the handling fee after pressure from member states whose customs authorities are overwhelmed by the 4.6 billion items imported annually, the newspaper added.

The proposal, seen by the Financial Times, does not set the amount of the fee, but according to the newspaper, it will amount to about €2  ($2.25).

A fee of €0.50 for items sent to warehouses

The European Commission's draft proposal also states that the €2 fee will apply to direct sales, but that items sent to warehouses will be taxed at €0.50.

Some of the revenue generated will cover the costs of additional customs controls, while the rest of the money will go to the EU budget.

EU Commissioner Maroš Šefkovic promised to tackle the surge in parcels, which, "has led to an increase in dangerous and non-compliant products and complaints from EU retailers of unfair competition".

End cheap parcels from Temu, Shein and Alibaba to the USA

It is recalled that the US had also imposed a fee on cheap parcels from Temu, Shein and Alibaba, which are imported into the United States.

Specifically, Donald Trump has signed an executive order ending the rule that allowed items from China and Hong Kong worth up to $800. enter the U.S. without customs duties.

The U.S. government has said it is targeting this exemption as it believes it may be used to ship ingredients used in the production of illicit fentanyl to the U.S., avoiding detection by authorities.

At the same time, Trump has said that the tariff relief has benefited Chinese e-commerce platforms at the expense of U.S. retailers.

Packages from China and Hong Kong will now be taxed at a rate of 120% of their value or charged at a flat rate. That fee starts at $100 and is set to increase to $200 on June 1.

Although Americans can still buy goods from companies like Temu and Shein, their costs will likely rise as retailers raise prices ahead of the tariffs.

capital.gr