The European Union is preparing stricter measures to address the surge of low-cost packages entering the region from Chinese e-commerce platforms like Temu and Shein.
With nearly 4B low-value parcels expected in 2024—triple the number in 2022—the influx is overwhelming customs checks, allowing the entry of dangerous goods, such as toxic toys, and counterfeit products. Most packages shipped from China to the EU fall under the region's €150 customs duty threshold and bypass scrutiny.
The EU is proposing the following measures:
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Revenue Tax and Handling Fees – a new tax on on e-commerce platform revenue and an administrative fee per package.
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Removal of Tax Exemptions – potentially eliminating the €150 customs duty exemption.
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Stricter Enforcement – to reduce the flow of unsafe products like toys and cosmetics.
Would all that even be possible?
Amsterdam’s Schiphol airport and Rotterdam port handle a combined 3.5M packages a day, which equates to 40 packages per second. An EU diplomat told FT, “There is no way you can check it all.”
A tax on the revenue of e-commerce platforms, which would be applied to both EU and foreign businesses, would require approval from the bloc’s 27 member states, and would also impact European businesses and consumers.
EuroCommerce, which represents EU retailers, noted that a handling fee would be difficult to justify under World Trade Organization rules that limited the amount of fees and charges for customs processing to the approximate cost of the service rendered.
The organization told FT, “For now we urge the European Commission and member states to step up enforcement at national and EU level, and break down silos between different enforcement domains.”