EU plans €2 price on small parcels coming into the bloc | EUROtoday

The European Union has proposed a two-euro flat price on billions of small parcels despatched on to individuals’s houses, which primarily come from China in the mean time.

The new tax would imply that packages value lower than 150 euros (£126) are now not customs-free.

Online marketplaces, together with Chinese giants Temu and Shein, can be anticipated to pay the price, mentioned EU Trade Commissioner Maros Sefcovic.

Last 12 months, 4.6 billion such parcels entered the EU, with greater than 90% coming from China.

Such a quantity had created an enormous workload for EU customs workers, Sefcovic mentioned. He argued it had introduced challenges in guaranteeing the security and customary of products coming into the bloc was correctly checked.

The proposed price would “compensate the cost”, he informed the European Parliament. Brussels additionally hopes a few of the income generated will go in the direction of the EU funds.

The two-euro price will apply to packages despatched on to customers, whereas parcels despatched to warehouses can be taxed at a decrease price of 0.50 euros (£0.42).

The EU’s transfer comes after the US’s new tariffs on Chinese items below President Donald Trump’s administration – which embody a price on small packages.

Following negotiations final week, the tariff on small packages value as much as $800 (£606) was revised right down to 54% from 120%. However a flat price per parcel of $100 stays.

There had been fears that the Chinese e-commerce giants may then flood the European market with low cost items, as merchandise initially destined for the US must be dumped elsewhere.

European retailers have complained earlier than that they face unfair competitors with abroad opponents, who they argue don’t adjust to the EU’s strict product requirements.

Shein and Temu have beforehand mentioned they’d co-operate with regulators and shopper requirements. Temu says it has 92 million customers within the EU, whereas Shein has mentioned it has over 130 million.

Prior to the US tariffs, platforms like Shein and Temu had relied on the so-called “de minimis” exemption to ship low-value objects on to prospects within the US with out having to pay duties or import taxes.