What: EU customs authorities introduce a new EUR 2 fee per parcel to manage the surge of Chinese e-commerce imports, which doubled to 4.6 billion packages in 2024.

Why it is important: The unprecedented volume of parcels challenges EU customs infrastructure and fair competition, necessitating new measures to ensure product compliance and market balance while protecting European retailers

The European Union's proposal to implement a EUR 2 handling fee for low-value e-commerce packages marks a significant shift in cross-border trade regulation. The measure comes in response to an overwhelming surge in parcels, with EU customs handling 4.6 billion low-value packages in 2024, of which 91% originated from China, representing a twofold increase from the previous year. The fee structure includes two tiers: EUR 2 for direct-to-customer deliveries and 50 cents for parcels processed through EU warehouses. This initiative complements the planned 2028 removal of duty-free treatment for consignments valued under EUR 150. The fee aims to cover compliance monitoring costs for issues such as toy safety, with the burden falling on online retailers rather than consumers. Major European retailers, including Zalando and Allegro, have welcomed the proposal while advocating for faster implementation of broader reforms. The measure aligns with recent US policy changes and reflects growing global scrutiny of cross-border e-commerce practices.

IADS Notes: The EU's handling fee proposal emerges amid significant global retail regulatory shifts. In February 2025, the EU introduced comprehensive reforms establishing platform liability for unsafe products, while the US implemented substantial tariff changes in April 2025, eliminating its USD 800 de minimis threshold. These pressures have already prompted major industry adaptations, with Shein offering increased procurement prices to relocate manufacturing to Vietnam in February 2025. The UK's recent review of its customs threshold further demonstrates the growing Western consensus on stricter cross-border trade controls, fundamentally reshaping the global retail landscape.

EU delivers shock to Temu, Shein: A new fee for low-value parcels