The European Union has proposed a €2 flat fee on billions of small parcels shipped directly to consumers, primarily from China, in a move targeting platforms like Shein and Temu. The plan aims to end customs exemptions on parcels worth less than €150, shifting the financial burden onto major online marketplaces.

EU Trade Commissioner Maros Sefcovic said the surge in low-value parcels 4.6 billion in 2023, with over 90 per cent from China has strained customs systems and complicated safety and standards enforcement. The fee would help offset inspection costs and boost EU budget contributions. Parcels routed to warehouses will incur a lower €0.50 charge.

The EU’s action mirrors recent US measures. Earlier this month, the US slashed tariffs on small packages from 120 per cent to 54 per cent but retained a $100 flat fee per parcel. These moves are designed to close the ‘de minimis’ loophole that allows duty-free shipments of inexpensive goods, which Chinese platforms had long exploited.

Japan is also reviewing its current exemption on parcels worth under 10,000 yen, citing concerns about unfair competition, illegal goods, and lost tax revenue. Officials are weighing the impacts of removing exemptions amid a fivefold rise in small parcel imports over five years.

With Shein and Temu facing tightened rules in the US, there are fears of redirected excess inventory flooding EU markets. Both platforms claim compliance with regulations and boast over 220 million users in Europe.

As France and the UK explore similar clampdowns, the global backlash is reshaping the future of cross-border e-commerce and raising the cost of cheap online goods for millions of consumers.