Europe Plans National Handling Fee on Small Packages

 EU governments to impose national handling fee on parcels

The European governments will levy a national handling fee on small packages bought from online stores like Shein, Temu, and Alibaba as the European Union's block policy is set to meet delays. The step is to raise additional revenues, better customs clearance, and rectify the inflow of duty-free imports inundating the continent.

With an estimated 4.6 billion pieces of packages bought by European consumers during the year 2024—80 percent thereof from China—their authorities have raised an alarm that the customs are overwhelmed. Most of the packages are cheap goods such as garments, electronics, and toys that pay below-average import duties.

EU proposal delayed, countries act independently

The European Commission also implemented an estimated €2 handling fee in May to normalize customs inspections as well as stabilize the revenues collection. The EU plan is still not to take effect until at least December 2026. The postponement has pushed governments to resort to national handling fee on small packages, risking market fragmentation and subsequent price escalation for the end customer.

It was the first nation to impose an €5 fee this past August, and the Netherlands and Poland believe the same. The Polish Deputy Minister for the Digital Economy Dariusz Standerski also conceded the consideration by Warsaw of national-level solutions but reiterated that only an EU-level solution will ensure lasting success.

Governments are pressured by shopkeepers

Shippers' and European retailers' calls for swift action have been echoing around governments. Danish transportation company DSV customs director Anna Jerzewska said governments are under tremendous urgency to solve what she described as an "ecommerce tsunami."

Nevertheless, she warned setting an EU-country national handling fee on small packages without coordination will have packages shipped EU countries round with little or no charges.

The Dutch economy ministry reinforced this worry, stating that it favors an national fee only if the other member states do the same to prevent the "waterbed effect," where the packages will only migrate to countries without the surcharge.

Germany calls for quicker EU-level solution

Germany's finance minister, Lars Klingbeil, appealed to the European Commission to speed up the EU fee's introduction as customs administrations and also market surveillance authorities are overwhelmed. He appealed to the growing danger surrounding illegal imports, product safety, as well as level playing grounds that only an EU coordinated approach will safeguard the loopholes.

The EU is, however, bickering over whose pockets the revenues from the surcharges will land. The EU institutions wish the monies to flow into the EU budget, but nations that handle high volumes of parcels—such as the Dutch and Belgians—refuse to give up control over the revenues.

Consumers will increasingly pay online soon

The national handling fee on small packages planned would be aimed at the big e-commerce players, whose only option will be to pass the expenses on to the customers. This will make purchasing online from outside the EU expensive, ending the extremely cheap delivery formula that witnessed companies such as Temu and Shein dominating the market.

With member countries and Brussels stalled on the detail of implementation, one point is certain: The era of budget shopping duty-free is closer to an end for Europe, and the national treatment fee for small packages is the potential first step in redefining cross-border e-commerce's rule.