Cracking Down on Shein & Temu: EU Ministers Approve New Customs Fee on Chinese Parcels

The executive of the EU called on the finance ministers of the bloc, holding a meeting on 13th November, to introduce a fee starting next year on low-value orders originating from Temu and Shein to contribute to a wave of cheap Chinese imports.

It has no tax on packages under 150 euros ($174) of goods imported straight to customers in the 27-member bloc, in numerous instances through Chinese-based sites.

In May this year, the European Union had suggested abolishing the exemption and a flat two-euro charge on small packages, which would come into force in 2028.

Trade chief Maros Sefcovic of the EU has now asked EU finance ministers in a letter to AFP dated Wednesday to find a temporary solution within the next year.

“It will be an important move towards making the European Union stronger against the quickly evolving trade reality,” Sefcovic wrote.

“This time scale,” he added, “does not fit into the urgency of the situation.”

Sefcovic claimed that European industries, particularly retailers, have emphasized that this distortion of competition should be eliminated immediately.

“It will be very hard to make our businesses and citizens understand why the EU can not act more urgently to offer a solution, ” he added.

The letter does not detail the level of the fee to be charged, but Sefcovic indicated that the ministers must strive to create a simplified interim customs fee and an improved connection of IT tools.

Thursday talks between EU member states and the European Commission are supposed to see them reach an agreement and eliminate the duty exemption, and a compromise to come up with a temporary solution next year.

They will accept to work on a simple provisional solution to allow a prompt implementation in 2026 (as soon as it is possible) to bridge the interim period in a draft statement that they will have seen but may still change.

This shall then be intended to submit the plan to the approval of the EU finance ministers during the next meeting on Dec. 12.

In frustration, other member states have already gone ahead with their own arrangements, such as Romania, which has already imposed a fee of five euros on small parcels.