【By Observer Net, Qi Qian】

According to the latest news from the UK's Financial Times on November 13, the European Union has called for the immediate cancellation of the policy of exempting small parcels valued below 150 euros (approximately 1225.1 RMB, the same below) from import duties, with the plan to take effect in early 2026.

The report said that this move targets small packages from China, and it is more than two years earlier than originally planned. In May this year, the EU first announced this proposal, which was expected to take effect in mid-2028.

On the local time of the 13th, EU member states' finance ministers will meet in Brussels. The EU Commissioner for trade and economic security, Maros Sefcovic, wrote a letter to the finance ministers of various countries, urging them to agree to accelerate the cancellation of the small parcel tax exemption policy.

According to the content of the letter seen by the Financial Times, Sefcovic stated in his letter: "This is a key step to ensure that the EU enhances its position in the rapidly changing trade reality." He added that this move "will send a strong signal that Europe takes seriously the enhancement of competitiveness and ensures fair conditions for its businesses."

"The previous timetable does not match the urgency of the current situation," Sefcovic wrote. "European industries, especially retailers, have repeatedly emphasized that it is necessary to immediately eliminate this distortion of competition. It will be extremely difficult to explain to our businesses and citizens why the EU cannot act faster."

Sefcovic continued to say, "This is not a technical issue, but about the ability of Europe to defend its economic interests. A modern and competitive Europe must be able to... better protect its goods borders and maintain fair competition."

The report said that EU countries need to reach a consensus on the new timetable and negotiate details such as the fixed customs fees to be implemented.

Maros Sefcovic, EU website photo

At the time when the EU Commission proposed the new timetable, some European countries had already taken action separately.

According to information from the American Forbes website, the French parliament is preparing to debate a bill that would impose a 2-euro tax on low-value imported goods. This measure may come into effect next year. Recently, Romania and other countries have already imposed fees of up to 5 euros on small packages.

The Financial Times reported that the small parcels involved in the EU's proposed new regulations are mostly from China, which could have a new impact on the business of Chinese cross-border e-commerce companies such as Temu and Shein. Data shows that 4.6 billion such small parcels entered the EU last year, of which 91% originated from China, and the number is expected to continue to grow.

Number of low-value imported e-commerce goods entering the EU in 2024, Financial Times map

In recent years, Chinese e-commerce apps like Temu and Shein have developed rapidly around the world. According to data from research company Sensor Tower, in 2024, Temu became the most downloaded mobile e-commerce application globally, with downloads reaching 550 million times, followed by Shein.

Previously, foreign media believed that the business model of Chinese e-commerce benefited from the "minimum exemption", which allows parcels below a certain amount or value to be exempt from tariffs in the destination country. However, in addition to Chinese e-commerce, US retailers such as Amazon and Walmart also use this mechanism to import goods.

With the rapid development of Temu and Shein, these two e-commerce platforms have become thorns in the eyes of Western governments.

The US government took the initiative, and the tax exemption policy for small parcels (valued below 800 dollars) officially ended in August. However, many Chinese merchants said that they expect the cost of selling to the US to increase, but they have already established warehouses in the US in advance to buffer the impact.

At the same time, the EU and Japan and other countries plan to follow the US example and target small parcels.

In May, the EU announced that it planned to cancel the policy of exempting small parcels valued below 150 euros from import duties. Instead, the EU will charge a uniform fee of 2 euros (about 16.335 yuan) per parcel annually that enters the territory and is directly delivered to consumers' homes; if the small parcels are first transported to warehouses within the EU for storage, a fee of 0.5 euros (about 4.084 yuan) per parcel will be charged.

China's Foreign Ministry spokesperson Mao Ning responded at the time, stating that specific issues should be directed to the relevant Chinese authorities.

Mao Ning also pointed out, "I can tell you that China has always believed that creating an open and inclusive international trade environment is in the common interest of all parties. We hope that the EU will abide by its commitment to openness, provide Chinese enterprises with a fair, transparent and non-discriminatory business environment, and create favorable conditions for Sino-European economic and trade cooperation."

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