EU's new e-commerce duty targets low-cost platforms like Shein and Temu

The European Union has introduced a new handling duty of €3 on low-value parcels entering the bloc, a measure aimed squarely at fast-growing e-commerce platforms such as Shein and Temu that ship large volumes of low-cost goods directly to consumers from outside the EU.

The rule targets a category of small parcels that had previously benefited from lighter customs treatment, a gap that EU officials have said allowed some platforms to undercut local retailers on price while avoiding the duties and checks applied to larger shipments. Supporters of the measure argue it levels the playing field for European retailers and allows for better oversight of the flood of small parcels entering the bloc.

Critics, including some consumer advocates, have raised concerns that the added cost could ultimately be passed on to shoppers who rely on these platforms for inexpensive goods, potentially narrowing the price advantage that has driven their rapid growth in European markets.

The move adds the EU to a broader international conversation about how to regulate low-value, direct-to-consumer e-commerce shipments, an area regulators in several countries have been reassessing as such platforms have expanded their market share.