EU's new Temu Tax

In Short: The EU is slapping a €2 handling fee on every small package shipped directly to consumers—mostly from China—via bargain platforms like Shein and Temu. It’s part of a wider shake-up to customs rules aimed at tightening border checks and levelling the playing field for EU retailers.

What’s Going On?
Fast, cheap, and direct-to-door parcels have flooded EU borders—4.6 billion last year, with over 90% from China. Customs can’t keep up, retailers are crying foul, and officials are worried about dodgy goods slipping through. The €2 fee (or €0.50 for warehouse-bound items) helps cover customs costs and nudges sellers to route goods via EU warehouses. That means more oversight, less chaos, and—yes—potentially pricier Shein hauls.

Key details:

• €2 handling fee for direct-to-consumer parcels
• €0.50 fee for packages sent to EU warehouses
• Scrapping of the €150 de minimis exemption, meaning all imported goods will be subject to VAT
• Platforms will become liable for product compliance as “importers”

Insights: Europe is quietly rewriting the rules of the e-commerce game. The EU’s also scrapping its €150 de minimis threshold, meaning sellers must register for VAT and be liable as importers. That’s a major compliance shift. Platforms like Temu and Shein, already on the back foot after Trump’s tariff tantrums, now face a double whammy. Expect changes to shipping models, more costs passed to consumers, and a new chapter in global e-commerce logistics.

How Does This Impact Law Firms?