Brussels Backs France on EU Handling Fee for Cheap Parcels

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In a significant shift towards addressing the challenges posed by e-commerce and low-value imports, the European Commission is advocating for the implementation of a customs handling fee on packages valued at less than €150. This proposal, which aims to take effect earlier than initially anticipated, is a direct response to mounting pressures from member states, particularly France, which recently introduced its own national handling fee. The proposed changes could reshape the landscape of online retail within the European Union, impacting both consumers and businesses alike.

Commissioner for Trade and Economic Security, Maroš Šefčovič, communicated these intentions in a letter directed to the finance ministers of the EU member states. The letter emphasised the urgency of the situation, stating, “if we act with the required political determination and pragmatism, a workable solution could be in place for Q1 2026.” This timeline indicates the Commission’s commitment to resolving the issue promptly, underscoring the need for a coordinated approach among member states to mitigate the competitive advantages currently enjoyed by low-value imports.

France’s decision to impose a national handling fee has prompted concerns among its neighbours, particularly Belgium and the Netherlands, who are contemplating similar measures to prevent potential market displacement. The finance ministers convened in Brussels to discuss the implications of eliminating the €150 threshold that currently exempts low-value shipments from customs duties. While a comprehensive overhaul of the customs framework may not be feasible until mid-2028, Šefčovič’s proposal seeks to establish a simplified temporary customs fee alongside improved IT infrastructure for customs processing.

The push for this initiative reflects a growing consensus among EU member states that free trade should not equate to unfettered access for low-quality goods that fail to meet European product safety standards. Swedish Finance Minister Elisabeth Svantesson articulated this sentiment, asserting that “free trade doesn’t mean you get to flood the market with whatever garbage you feel like selling.” This perspective highlights the necessity for a balanced approach that fosters fair competition while safeguarding consumer interests and maintaining product standards.

In 2024, the EU received over 4 billion packages declared to be worth under €150. However, many of these packages were suspected of violating safety standards or were found to be worth significantly more than their declared value. The surge in online shopping, particularly from platforms like Shein and Temu, has exacerbated this situation, prompting France to take decisive action by suspending access to Shein’s online platform this month. Such measures reflect a growing awareness of the need to regulate the influx of low-value goods that threaten local businesses and consumer safety.

As discussions unfold regarding the customs handling fee and its implications for e-commerce, the EU’s three principal institutions are engaged in negotiations to enhance customs coordination across the bloc’s 27 national agencies. The proposed establishment of a centralized IT hub and an EU Customs Agency aims to streamline customs operations and improve compliance with EU regulations. This collaborative effort signifies a commitment to creating a more efficient and effective customs framework that can adapt to the evolving landscape of global trade.

In conclusion, the European Commission’s push for a customs handling fee on low-value packages marks a pivotal moment in the EU’s approach to regulating e-commerce. As member states navigate the complexities of this initiative, it is imperative that they strike a balance between fostering free trade and protecting consumers from substandard products. The success of this endeavour will depend on the collective political will and cooperation among EU member states, as they work towards a solution that benefits both businesses and consumers in the digital age.