European levy on non-EU parcels kicks in on Sunday in bid to curb China influx

From Sunday, the European Union will introduce a €2 (US$2.25) handling fee on packages coming from outside the 27-nation bloc, aiming to curb the influx of products from China. This new levy will be added on top of the existing €3 duty on small parcels worth less than €150, which has been in place since July. The handling fee applies to each item in a package, regardless of its overall value.

For instance, a package containing 10 T-shirts would incur a €2 charge, while a package with two hats and 10 T-shirts would attract a €4 fee.

The European Consumer Organisation (BEUC) expresses concern that some online platforms may pass these additional costs onto consumers at the final stages of a purchase, which would be illegal under EU law. The handling fee aims to compensate customs authorities for the strain they face in processing nearly six billion small packages that entered the EU last year, with 93% originating from China through platforms such as AliExpress and Temu.

Since the implementation of the €3 duty in July, imports have dropped by around 64%, though officials caution that it is too early to draw definitive conclusions.

The handling fee is a permanent measure, while the €3 duty remains a temporary one until July 1, 2028, when standard customs tariffs will apply. The EU will reassess the handling fee's amount every two years to ensure it remains proportional to the cost of customs operations. Meanwhile, Temu has pledged to improve its handling of illegal product sales, following a €200 million fine in May for selling dangerous baby toys.

The company has submitted an action plan to address the issue, including measures to prevent the sale of illegal goods on its platform and enhance compliance infrastructure for a safer shopping environment for EU users.