The Eu Intends to Impose a 2-euro Tax on Low-priced Goods

Recently, the European Commission submitted a proposal to impose a 2 euro fee on each small package entering the European market. This policy is aimed at responding to the challenges brought by the influx of a large number of low-priced goods into the EU market, especially for packages from Chinese e-commerce platforms such as Temu and Shein.

The deep logic behind the EU's "2 euro package tax"

In May 2025, the European Commission formally submitted a proposal to cancel the tax-free threshold for goods below 150 euros, and to impose a fixed fee of 2 euros per ticket for small packages directly mailed to consumers (0.5 euros per ticket for warehouse packages), targeting Chinese cross-border e-commerce platforms such as Temu and Shein. About 12% of VAT, the overall cost increased by more than 15%. If the logistics costs are increased, the profit margins of some products may drop sharply from 30% to single digits.

The policy is still under discussion, but it may take effect at the end of 2025 or early 2026. According to EU customs data, 91% of the 4.6 billion low-priced parcels imported by the EU in 2024 came from China, with an average daily parcel volume of more than 12 million, resulting in a surge in customs clearance pressure.

Policy core motivation

Financial leakage: EU customs lose up to 65% of tax revenue each year due to tax evasion of low-priced parcels. The EU loses about 5.8 billion euros in value-added tax each year due to the current 150 euro tax-free policy;

Fair competition: Local SMEs face dual pressures of cost and compliance due to the impact of low-priced goods; respond to the impact of "low-price dumping" by Chinese e-commerce platforms (such as Temu and Shein) on European SMEs;

Safety and environmental protection: Strengthen supervision of substandard products, low-priced goods may have safety risks, and massive transportation increases carbon emissions.

Impact of policy implementation

Cost surge: Take Shein as an example. If all of the 120 million parcels it sends to the EU in 2023 are subject to a 2 euro handling fee, annual expenditure will increase by 240 million euros;

Compliance pressure: The platform needs to add a new value review team, and the annual compliance cost is expected to increase by 120 million euros;

Logistics time efficiency: The German customs pilot showed that after adding 2 euros, the monthly inspection coverage rate increased from 5% to 8.5%, but it may lead to an increase in the parcel detention rate.

The triple challenges of cost, efficiency and compliance for enterprises and sellers

Cost pressure: profit margins are compressed

Direct costs: The 2 euro/piece fee will be directly passed on to sellers, especially low-priced goods (such as goods below 10 euros), the profit margin may return to zero; it may force sellers to increase the price of goods, thereby reducing the competitiveness of goods in the European market.

Hidden costs: In order to meet compliance requirements, sellers need to invest more resources in product declaration, traceability system construction, etc.

Chain reaction: Low-priced goods (below €15) may be forced to withdraw from the market, or transfer costs through price increases (but the price sensitivity of consumers needs to be balanced).

Logistics efficiency: customs clearance delays and inventory risks

Extended customs clearance time: Increased customs inspection coverage may cause packages to be stranded, affecting user experience;

Limited channel selection: Postal parcel customs clearance efficiency has decreased, and commercial express delivery costs have risen (such as DHL's new €3/ticket environmental protection surcharge).

Decreasing inventory turnover: To avoid risks, sellers may choose to prepare goods in overseas warehouses in advance, but inventory costs will increase.

Compliance risks: policy differences and supply chain transparency

Multi-country policy differences: The EU focuses on process charges, the United States adopts a tax recovery model, and Japan focuses on product traceability. Companies need to deal with different compliance requirements;

Increased platform responsibilities: E-commerce platforms are regarded as "importers" and must bear tariffs, VAT declarations and supply chain compliance obligations (such as origin, environmental protection standards);

Supply chain traceability: The EU intends to require platforms to upload digital certificates of product manufacturers, and sellers need to ensure supply chain transparency.

Supply chain reconstruction pressure

Direct mail model frustrated: The United States, Japan, Mexico and other countries have simultaneously tightened small-amount tax exemption policies, and the traditional "direct from China" model is unsustainable;

Localization demand: EU consumers expect faster delivery, and overseas warehouse layout has become a must.

The EU's response strategy for imposing a 2 euro tax on low-priced goods

Reasonable use of overseas warehouses

Establishing overseas warehouses in the EU can effectively solve some problems caused by changes in tariff policies. Through overseas warehouses, sellers can store goods in the EU in advance, and when there are orders, they can be shipped directly from local warehouses, shortening delivery time and improving customer satisfaction. At the same time, according to the EU's tax regulations, goods shipped from overseas warehouses can be declared and taxed according to local tax policies, avoiding tariffs and value-added tax issues in cross-border transportation.

Optimize logistics channels

Choose the right logistics partner: Cooperating with professional international logistics service providers, such as Chinadivision, can help sellers optimize logistics channels and reduce transportation costs.

Flexibly adjust transportation plans: When facing the risk of delays, quickly adjust transportation plans, such as choosing air or rail transportation, to shorten the overall transportation time.

Strengthen communication and collaboration with logistics partners

Logistics partners play a vital role in cross-border e-commerce operations. Sellers should maintain close communication with logistics suppliers, keep abreast of the impact of tariff policy changes on logistics links, and jointly explore response strategies. For example, logistics suppliers can adjust transportation routes and methods according to policy changes to help sellers reduce tariff costs.

Improve customer service quality

In the case of rising commodity prices due to tariff policy changes, improving customer service quality can help sellers enhance customer stickiness and improve customer satisfaction. Sellers can attract consumers to continue to buy goods by providing high-quality after-sales service and personalized shopping experience.

Follow policy trends

Continue to pay attention to the latest developments in EU tariff policies and adjust operational strategies in a timely manner. For example, the EU plans to launch a tariff system reform plan in 2026. As part of the reform plan, the new package handling fee will be implemented as a temporary measure until the EU abolishes the current preferential policy of exempting packages below 150 euros from tariffs.

Professional solutions provided by Chinadivision

As a professional third-party international logistics fulfillment service provider, Chinadivision provides the following solutions to help sellers cope with the challenges brought by the new EU policy:

Overseas warehouse service

Localized delivery: By setting up overseas warehouses in the EU, localized delivery is achieved, delivery time is shortened, and customer satisfaction is improved.

Tax optimization: According to the EU tax regulations, goods shipped from overseas warehouses can be declared and taxed according to local tax policies, avoiding tariffs and VAT issues in cross-border transportation.

Logistics optimization

Diversified logistics channels: Provide multiple logistics channels such as sea, air, and land transportation to help sellers optimize transportation plans.

Real-time monitoring and early warning mechanism: Through the logistics management system, real-time monitoring of transportation status, timely discovery and resolution of problems.

Compliance support

Professional tax consulting: Provide professional tax consulting services to help sellers understand and comply with EU tax regulations.

Document preparation and declaration: Assist sellers in preparing and submitting necessary customs declaration documents to ensure smooth customs clearance of goods.

Customer service

24/7 customer service support: Provide round-the-clock customer service support to answer sellers' questions in a timely manner.

Multilingual service: Support multiple languages ​​to ensure barrier-free communication with sellers and customers.

Transformation from "price war" to "value war"

The implementation of the new EU 2 euro tax marks the transition of cross-border e-commerce from "barbaric growth" to the era of "compliant competition". Enterprises and sellers need to reconstruct their competitiveness through localization, technology and branding. As a professional third-party international logistics fulfillment service provider, Chinadivision provides comprehensive solutions to help sellers optimize supply chain management, reduce operating costs and improve customer experience.

If you have any questions or need to know more about our services, please feel free to contact us. Our professional team will provide you with all-round support to help you solve practical problems.