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EU to Impose €2 Handling Fee on Small Parcels, Impacting Shein and Temu

May 27, 2025, 3:43 a.m. ET

AsianFin — The European Union plans to introduce a €2 handling fee on low-value parcels shipped directly to consumers, targeting mainly Chinese e-commerce giants such as Shein and Temu.

This initiative seeks to curb the rapid growth of small parcel imports, improve customs efficiency, and enhance product safety controls.

In 2024, the EU processed roughly 4.6 billion low-value parcels, with over 90% coming from China. The new fee forms part of a comprehensive customs reform aimed at abolishing the current €150 duty-free threshold. Under the changes, sellers will be required to register for VAT and comply with EU regulatory standards. Parcels distributed via EU warehouses will benefit from a reduced fee of €0.50.

The European Commission points to rising concerns about unsafe, counterfeit, or non-compliant goods flooding European markets. Environmental issues and unfair competition faced by domestic businesses have also driven the reform. Officials expect the fee to provide modest revenue and strengthen customs oversight.

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