The European Union has unveiled a proposal to impose a €2 flat fee on billions of small parcels shipped directly to consumers’ homes, primarily from China, in a move to address customs overload and bolster the EU budget.

The measure, announced by EU Trade Commissioner Maros Sefcovic, would end the customs-free status for packages valued under €150 (£126), targeting major Chinese e-commerce platforms like Temu and Shein.

In 2024, the EU processed 4.6 billion such parcels, with over 90% originating from China, creating significant strain on customs operations.

Sefcovic told the European Parliament that the influx has made it difficult to ensure compliance with the bloc’s safety and quality standards.

The proposed fee aims to offset these costs, with a portion of the revenue expected to support the EU budget.

Parcels shipped directly to consumers will face the €2 fee, while those sent to warehouses will incur a reduced rate of €0.50 (£0.42).

The proposal follows recent U.S. tariffs on Chinese goods under President Donald Trump’s administration, which include a 54% duty on small packages worth up to $800 (£606) and a $100 flat fee per parcel.

Concerns have grown that Chinese e-commerce giants might redirect goods originally bound for the U.S. to Europe, intensifying competition.

European retailers have long argued that overseas competitors, including Temu and Shein, benefit from lax compliance with EU product standards, creating an uneven playing field.

Temu, with 92 million EU users, and Shein, with over 130 million, have pledged to cooperate with regulators on consumer standards.