San Francisco Frontiers - New levy on non-EU parcels kicks in November 1

The new levy -- coming just weeks before the Black Friday, Cyber Monday, and Christmas season shopping rushes -- will be on top of the EU's three-euro fee on small parcels.

- How will it work? -

The fee will apply to each type of item in a package sent directly to consumers from outside the EU regardless of the parcel's value. For example, if there are 10 T-shirts in a package, the handling fee will be two euros.

But if a package contains two hats and 10 T-shirts, the fee will be four euros.

The handling fee comes on top of the three-euro duty imposed in July on small packages worth less than 150 euros.

But European consumers will not pay the handling fee, insists the EU.

Online marketplaces including US platforms such as Amazon and Chinese retailers such as AliExpress and Temu, as well as sellers and other intermediaries must pay the new fee.

Platforms and sellers can, however, raise their prices, thereby passing off the higher costs to the consumer.

- Why is the EU introducing the fee? -

Nearly six billion small packages entered the EU last year, according to official data.

Some 93 percent of the cheap packages that arrived in Europe came from China, usually via popular Asian platforms such as AliExpress and Temu.

Brussels says this is putting increasing strain on customs authorities to manage this influx, thereby raising their costs too. The handling fee will compensate their efforts.

Since the EU imposed the three-euro duty on small parcels in July, imports have fallen by around 64 percent -- although officials warn it is too early to draw firm conclusions.

Europe has also expressed concern about "unsafe" non-EU products such as toys that violate the rules arriving in the bloc via Chinese e-commerce platforms.

- What's next? -

The two-euro handling fee is a permanent levy but the three-euro duty on low-value packages is a temporary measure in place until July 1, 2028.

From that date onwards, standard, product-specific customs tariffs will apply.

The EU will have to assess the handling fee's amount every two years to ensure it remains proportional to the cost of customs operations in the bloc.

A.Evans--SFF