
The European Union has proposed a flat rate of two euros for billions of small packages sent directly to people's homes, which currently come mainly from China.
The new tax means that parcels worth less than 150 euros (126 pounds) will no longer be duty-free. Online marketplaces, including Chinese giants Temu and Shein, are expected to pay the fee, EU Trade Commissioner Maros Sefcovic said, BBC reports.
Last year, 4.6 billion such packages entered the EU, with more than 90% coming from China.
Such a volume had created a huge workload for EU customs staff, Sefcovic said. He argued that this had presented challenges in ensuring proper security and standard checks of goods entering the bloc.
The proposed tariff would "compensate for the cost," he told the European Parliament. Brussels also hopes that part of the revenue generated will go towards the EU budget.
The two-euro fee will apply to parcels sent directly to consumers, while parcels sent to warehouses will be taxed at a lower rate of 0.50 euros (0.42 pounds).
The EU move comes on the heels of new US tariffs on Chinese goods under President Donald Trump's administration - which include a tariff on small packages.
After negotiations last week, the fee for small packages worth up to $800 (£606) was revised to 54% from 120%. However, a flat fee of $100 per package remains in place.
The fear was that Chinese e-commerce giants could flood the European market with cheap goods, as products originally destined for the US would have to be dumped elsewhere.
European retailers have previously complained that they face unfair competition from foreign competitors who, they say, do not adhere to strict EU product standards.
Shein and Temu have previously said they will cooperate with regulators and consumer standards. Temu says it has 92 million users in the EU, while Shein has said it has over 130 million.
Before the US tariffs, platforms like Shein and Temu had relied on the so-called “de minimis” exemption to ship low-value items directly to customers in the US without having to pay import duties or taxes.