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New levy on cheap packages from China could generate billions

New levy on cheap packages from China could generate billions

The European Union is imposing new levies on low-cost goods from Asian e-commerce sites like SHEIN and Temu to cover rising customs processing costs. Starting November 1, a total of 5 euros in fees will apply per small parcel, a move expected to generate billions in revenue.

The European Union is introducing new measures to curb the influx of inexpensive goods from major Asian e-commerce retailers such as SHEIN and Temu. Following an initial levy of 3 euros per item implemented in July, an additional 2-euro charge will take effect on November 1. These fees are designed to cover the significant administrative costs incurred by customs services when processing and inspecting the massive volume of small international shipments. Official documents suggest these measures could generate approximately 6 billion euros in revenue.

Last year, nearly 6 billion packages valued under 150 euros entered the European Union, with over 90 percent originating from China. E-commerce platforms have increasingly utilized European distribution centers to facilitate these shipments, sometimes to bypass traditional import tariffs. Early market data already indicates a shift, as PostNL reported a 32 percent decline in deliveries from outside the EU in the last quarter. Furthermore, retailers like SHEIN have begun scaling back advertising campaigns in anticipation of these stricter regulatory requirements.

Based on reporting by nu. Translated and condensed by LocalHeadlines.

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