The European Union has announced plans to introduce a two-euro flat fee on billions of small parcels shipped directly to consumers, a move set to impact Chinese e-commerce giants like Shein and Temu.
Under the new proposal, packages worth less than 150 euros which are currently exempt from customs fees would no longer be customs-free. Instead, every small parcel sent straight to EU homes would carry the new €2 charge. Parcels arriving at warehouses, however, would see a reduced fee of €0.50 per package.
EU Trade Commissioner Maros Sefcovic explained that the change is aimed at easing the workload on customs officials and ensuring that incoming goods meet safety and quality standards. Last year alone, 4.6 billion such parcels entered the EU, with over 90% originating from China. “This fee will help compensate the cost,” Sefcovic told the European Parliament, adding that Brussels also hopes the new measure will provide additional revenue for the EU budget.
Online platforms such as Shein and Temu are expected to pay the fee. Temu says it has 92 million EU users, while Shein claims more than 130 million in the bloc. Both companies have stated they are prepared to cooperate with EU regulators and uphold consumer standards.
The move follows the US decision to impose higher tariffs on small parcels from China, including a significant flat fee of $100 per package. Although recent negotiations brought the US tariff on parcels valued up to $800 down from 120% to 54%, the per-parcel charge remains in place. There had been concerns that Chinese retailers would redirect surplus goods to Europe, potentially flooding the market with cheap imports after the US crackdown.
European retailers have long complained of unfair competition from overseas sellers, pointing to differences in compliance with strict EU product standards. The de minimis exemption, which previously allowed direct shipping of low-value goods without duties, helped fuel the growth of platforms like Shein and Temu across global markets.
If approved, the EU’s flat fee policy could change the landscape for cross-border e-commerce, increasing costs for online shoppers and leveling the playing field for European businesses.
