**EU Introduces €2 Fee on Small Parcels, Impacting Online Giants**

The European Union's new flat rate fee on small parcels aims to balance competitive play for European retailers while ensuring proper customs checks and safety standards.

In a significant shift in e-commerce dynamics, the European Union (EU) has put forth a proposal to impose a two-euro flat fee on billions of small parcels shipped directly to consumers' homes, primarily targeting goods imported from China. This fee will eradicate the customs-free status for packages valued under 150 euros (£126), impacting prominent online marketplaces, especially Chinese retailers like Shein and Temu, as stated by EU Trade Commissioner Maros Sefcovic.

Last year, a staggering 4.6 billion of these parcels flooded into the EU, with over 90% originating from China. The sheer volume has significantly burdened customs officials, who struggle to ensure that the safety and quality of goods entering the bloc are actively monitored. According to Sefcovic, the proposed fee aims to "compensate the cost" of processing these packages and contribute revenue towards the EU budget.

The new fee structure delineates that packages sent directly to consumers will incur the two-euro fee, while those destined for warehouses will be charged a lower fee of 0.50 euros (£0.42). This move comes in light of similar tariff strategies in place under the previous US administration, which reflected ongoing tensions with Chinese imports. The recent US tariff revisions also showcased a pivot, lowering the fee on small packages while retaining a flat rate charge.

Concerns have arisen among European retailers, who claim they are at a disadvantage against foreign competitors that bypass EU product standards. In response to regulatory changes, both Shein and Temu have expressed willingness to collaborate with authorities on compliance and consumer safety standards. Currently, Temu boasts 92 million users within the EU, while Shein claims to have over 130 million.

As the EU reviews its tariffs and fee structures, it seeks to define a balanced approach to international trade while empowering local economies and ensuring a high standard of consumer protection.