EU Targets Temu, Shein With Parcel Fees That Could Raise €6B Yearly

The European Union is moving to curb cheap e-commerce imports with new fees targeting platforms including PDD Holdings’ Temu and Shein. A European Commission document estimates the fees could generate €6 billion in annual revenue for the EU budget from 2028 through 2034.

The measures address the influx of low-value parcels, primarily from China. Critics say some goods are undervalued to avoid duties, creating unfair competition for local retailers.

Starting November 1, an additional €2 fee will apply to cheap parcels. It follows a €3 charge introduced in July. The measures eliminate the previous €150 duty-free threshold.

PDD Holdings acknowledged in August that the changes would have a “considerable impact” on its business. Facing regulatory pressure in both the EU and the U.S., the company is accelerating investment in local warehousing and fulfillment infrastructure to reduce its reliance on cross-border shipping.