The aim is to curb the surge in this type of import, which has tripled since 2022, reaching 4.6 billion packages below this value by 2024.
This complicates content control by customs authorities and paves the way for the entry of products that do not comply with European standards, creating unfair competition for community manufacturers.
The Twenty-Seven last month agreed to eliminate the customs duty exemption enjoyed since 1983 by orders not exceeding 150 euros, but this measure will not come into force until the European Union’s (EU) unified data center is operational in 2028.
However, partners considered this delay excessive to address an issue they see as urgent, thus agreeing on this temporary mechanism that will allow them to tax these packages from July 1 until the definitive system is applied.
Specifically, the new customs tax will be imposed on all goods entering the EU from non-EU sellers registered in the European single VAT window for imports, covering “93% of all ‘online’ trade flows to the EU,” explained the EU Council.
The measure, however, is different from the two-euro management fee that the European Commission also proposed applying to packages arriving in the bloc, which has not yet been approved.
States had two options on the table today for the transitional tax: apply a rate proportional to the value of goods or a uniform fixed rate for everyone, as proposed by France.
Ultimately, partners opted for the Paris proposal, which is leading initiatives to tackle the Chinese e-commerce giants in the EU.
“Europe is acting concretely to protect its single market, its consumers, and its sovereignty,” celebrated French Economy Minister Roland Lescure, noting that France already plans to implement a two-euro management fee on these packages at the national level, which, if approved by the French Parliament, could be added to the European one agreed upon today.
Meanwhile, Spanish Economy Minister Carlos Cuerpo expressed his support for the advancement of the low-value package tax “to control the flow of this type of product” before the meeting.
The European Commission estimates that 91% of the 12 million packages valued under 150 euros arriving daily in the EU come from China, attributing their increase to the “exponential growth” of ‘online’ stores such as Temu or Shein, which have won over millions of consumers in the EU thanks to “penetrating online advertising, low prices, and ultra-fast shipping.”
This massive arrival of packages directly to consumers increases the risk of counterfeit or unsafe products entering, distorts competition with European manufacturers who must comply with EU standards and pay taxes when importing in large quantities, while also harming the environment and lending itself to fraud, institutions warn.
