EU imposes 3 Euro tariff on small parcels to curb influx of cheap Chinese goods

(Taipei, July 1, 2024, CNA Foreign News) The European Union took its first step today to curb unfair competition from Chinese online retailers such as Shein, Temu, and Alibaba's AliExpress, imposing a 3 Euro (approximately NT$110) fee on small parcels previously entering the EU duty-free.

Reuters reported that this move is another blow to e-commerce platforms that sell goods at ultra-low prices by exploiting tariff exemptions. These platforms have grown rapidly as a result, but have also drawn dissatisfaction from retailers and policymakers.

The United States, the largest market for these platforms, terminated its small-value tariff exemption for Chinese goods exported to the US in May last year and canceled the duty-free treatment for all imported goods in late August.

The European Union's (EU) charging measure takes effect today and will be billed separately for each customs classification of goods. For example, a parcel containing 3 different types of goods will incur a total charge of 9 Euros; similar items such as multiple dresses or multiple toys in the same parcel will be charged 3 Euros.

Low-priced imported goods have enjoyed duty-free privileges for decades, with the current duty-free threshold of under 150 Euros in effect since 2008. However, the number of e-commerce parcels entering the EU through this exemption has surged, from 1.4 billion in 2022 to an estimated 5.8 billion in 2025.

Dirk Gotink, a Member of the European Parliament who led the tariff reform initiative, said in an interview, "In the past trade environment, this was very reasonable, but times have changed. The trade landscape has been completely disrupted by e-commerce, especially from China."

"This duty-free exemption has been massively abused and misused to gain a competitive advantage, at the expense of EU businesses."

Derek Lossing, an e-commerce and air cargo consultant, said the charging measure is likely to impact the scale of global air cargo, with e-commerce air cargo volume entering EU countries expected to decline by 10% to 35% in the weeks following its implementation.

The 3 Euro fee is a temporary measure, scheduled to be replaced by specific category tariffs on July 1, 2028, when a new EU customs authority will begin operations.

The charging measure is likely to cause e-commerce platforms to pass on some of the additional costs to consumers, driving up product prices.

AliExpress said in a statement that applicable goods will be marked with prices including tariffs and VAT, while other goods will display import fee details to consumers before checkout.

Shein and Temu did not respond to requests for comment. (Compiled by Lu Ying-tzu) 1150701

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