EC Plans to Levy Fees on Online Parcel Imports

Concerned over the influx of cheap goods, especially from China, the European Commission is planning to curb them by proposing new administrative fees on online parcel imports.

The Commission said that around 90 percent of the packages concerned come from China, and many of them sold by booming online giants Shein and Temu. Both Chinese-founded platforms are suspected by the Commission of not doing enough to prevent the sale of products that do not meet European standards.

 This move aims to alleviate the burden on customs services, address unfair competition and ensure product safety. Additionally, the Commission has launched an investigation into Chinese online retailer Shein for potential consumer protection violations.

Every day, 12 million parcels valued under $22.8 enter the European single market, twice as many from 2023 and three times that of 2022. Nearly 90% of these parcels are originating from China and arrive through six European Union (EU) member states, straining local customs operations.

European Commission vice president Henna Virkkunen said that they were seeing many goods do not respect the standards or are even dangerous. European traders who comply with EU regulations also face unfair competition, while the surge in shipments has negative environmental consequences.

Any business that wants to benefit from EU’s market of almost 450 million consumers should play by the rules, the EU’s consumer protection chief Michael McGrath said.

McGrath said up to 96% of products tested and sold on the targeted platforms were not fully compliant with our rules and our safety standards.

He said that the consequences can be real and can be very, very serious and cited examples like a baby’s pacifier that could come apart and choke the child, or a light fitting that could cause an electric shock.

To address these concerns, the Commission is pushing for swift approval of a 2023 proposal to eliminate the customs duty exemption for goods under $155.43, a move expected to generate an additional $1.04 billion in import duties. It also suggests a new administrative fee to help cover inspection costs.

More Cooperation Urged

European Commissioner for trade Maros Sefcovic said that the Commission believes that such a fee should be part of the debate and discussed with the European Parliament and the member states. While details on the rate remain undecided, the levy would be imposed on online platforms and traders.

The Commission is also calling for closer cooperation between customs services and market surveillance authorities to track non-compliant products. Coordinated actions would improve risk assessments and enable more targeted inspections.

As part of its broader enforcement push, the Commission confirmed an ongoing investigation into Shein in collaboration with the European Network of National Consumer Authorities (CPC). The retailer is suspected of violating EU consumer protection laws, including unfair contract terms, misleading price indications and deceptive marketing practices.

In response, a Shein spokesperson welcomed the efforts of the European Commission to strengthen the trust and safety of the consumers shopping online, and they believe that the entire ecosystem can benefit from a level playing field.