EU to impose €2 tax on low-cost items in blow to Temu and Shein

The EU plans to impose a flat €2 handling fee on billions of small packages, primarily from China, affecting online retailers like Temu and Shein, as part of efforts to manage the influx of 4.6 billion imported items annually. This proposal, presented by Trade Commissioner Maroš Šefčovič, aims to cover customs checks and contribute to the EU budget, while also eliminating the €150 “de minimis” exemption, making sellers liable for VAT and goods quality. The initiative responds to rising concerns over unsafe imports and aims to balance competition within the single market.

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