Published on: May 21, 2025 / update from: May 21, 2025 - Author: Konrad Wolfenstein
EU taxes for Temu and Shein: EU plans a package fee for online orders from China-Image: Xpert.digital
EU tax on cheap imports: challenges for Temu and Shein
Customs reform: How the EU takes on cheap platforms
The EU Commission is planning a flat-rate levy of up to two euros on parcels from third countries, whereby the low-cost providers Temu and Shein are in particular in focus. This measure reacts to the massive increase in daily package deliveries, which is currently around twelve million shipments and presents the European customs authorities with considerable challenges.
Suitable for:
The planned fee structure
The European Commission has submitted a concrete proposal to introduce a flat -rate levy. This provides for:
- Two euros fee per package for direct delivery to private households
- Reduced delivery of 50 cents for packages that are delivered to department stores
EU trading commissioner Maros Sefcovic explained the plan on May 20, 2025 in front of the internal market committee of the European Parliament. He emphasized that the fee should primarily be borne by the platforms on which consumers give up their orders, but admitted that the providers could pass these costs on to their customers through higher prices.
Background and extent of the problem
The European customs and surveillance system has brought its limits to the enormous increase in package programs from third countries, especially from China:
- In 2024, around 4.6 billion packages were imported into the EU, which corresponds to around 145 shipments per second
- 91 percent of these deliveries come from China
- Most of these programs have a value of goods below 150 euros and are therefore currently freed from customs taxes
Suitable for:
Business model of the low -cost providers
Temu and Shein have built their business model on direct deliveries from China:
- Temu, also active in Germany since 2023, attract customers with extremely low prices by delivering the products directly from the manufacturer to consumers
- Shein, originally founded in China and has now been based in Singapore, works as a manufacturer, dealer and marketplace in one and can keep its prices low by avoiding middlemen, shops and large inventories
The Green politician Anna Cavazzini, chair of the internal market committee in the EU Parliament, describes the problem as follows: "The phenomenon of the individual packages with the lowest value is young and grows through cheapest marketplaces such as Shein and Temu. The European system of customs and market surveillance has never been interpreted."
Goals of the measure
The planned package fee pursues several goals:
1. Relief of the customs authorities
The flood of packages has led to a massive overload of the customs authorities. The levy is intended to help cover the “increased surveillance costs” and to provide the necessary resources for increased controls.
2. Generation of income for the EU budget
The income from the fees should partially benefit the customs authorities, another part is to flow directly into the EU budget. Sefcovic estimates that the collection of fees could bring in around three billion euros annually for the EU budget.
3. Improvement of consumer protection
Consumer protection organizations warn that over 90 percent of the products of platforms such as Shein or Temu are not in accordance with the EU rights and some of them contain toxic chemicals. The tightened controls should therefore also serve consumer protection.
4. Creation of fairer competitive conditions
The measure aims to reduce the systematic disadvantage of European traders compared to Far Eastern platforms. The Austrian trade association expressly supports the planned two-euro fee as a step to a fairer competition.
Further planned measures
The package fee is part of a more comprehensive reform package:
- Possible abolition of the customs exemption for packages below 150 euros
- Tightening market controls for products from third countries
- Better equipment of the customs authorities for increased import controls
- Temporary blocks of platforms in the event of repeated legal violations
Current investigations against Temu and Shein
In parallel to the planned fee in Brussels, investigations against the low-cost retailers Shein and Temu are already underway:
- Studies for possible violations of EU laws on consumer protection and the rules for online platforms
- The EU consumer protection authorities had announced a sharper approach to Shein in February 2025
- An official procedure of the EU Commission is already underway against Temu
Market development and reactions
The German Trade Association HDE observes that Chinese online retailers such as Temu and Shein are increasingly focusing on Europe and Germany after the US market has become more unattractive due to customs policy under President Trump. According to the deputy HDE general manager Stephan Tromp, the expenditure for digital advertising in Europe in April and May 2025 has increased by 40 percent and more.
The EU measure is similar to the procedure in the United States, where the “de-minimis” excavation, which released shipments below $ 800 of tariffs, was abolished.
Suitable for:
Packing of the EU: Chance for fair competition or burden for consumers?
The planned package fee is a response from the EU to the unprecedented increase in direct imports from China, which burden both the customs authorities and raise questions about consumer protection and fair competition. With a flat-rate levy of two euros per package, the EU Commission is trying to finance controls and at the same time create incentives so that retailers are increasingly putting more on warehousing within the EU. It remains to be seen whether the measure will achieve the desired effects or whether the fees are ultimately passed on to consumers.
Suitable for:
Your global marketing and business development partner
☑️ Our business language is English or German
☑️ NEW: Correspondence in your national language!
Konrad Wolfenstein
I would be happy to serve you and my team as a personal advisor.
You can contact me by filling out the contact form or simply call me on +49 89 89 674 804 (Munich) . My email address is: wolfenstein ∂ xpert.digital
I'm looking forward to our joint project.
