The European Union is proposing a flat rate of 2 euros for billions of small plots sent directly to the homes of people who are mostly from China.
The new tax means packages under 150 euros (126 pounds) are no longer customs-free.
Online markets, including Chinese giants Temu and Shein, will be expected to pay the fee, said EU trade commissioner Maros Sefcovic.
Last year, 4.6 billion such plots entered the EU, with over 90% coming from China.
Such a volume has created a significant workload for EU customs staff, Sefcovic said. He argued that he presented challenges in ensuring that the safety and standards of products entering the block were properly checked.
The proposed fees “compensate for the costs,” he told the European Parliament. Brussels also hopes that a portion of the revenue generated will be directed towards the EU budget.
The 2 euro charge applies to packages sent directly to consumers, but parcels sent to the warehouse are taxed at a low tax rate of 0.50 euro (0.42 pounds).
The EU move comes after new US tariffs on Chinese goods under President Donald Trump’s administration.
Following last week’s negotiations, tariffs on small packages worth up to $800 (£606) have been revised from 120% to 54%. However, there is still a flat rate per parcel of $100.
There was fear that the Chinese e-commerce giant could flood the European market with cheap goods as the Chinese e-commerce giant had to dump products that were originally destined for the US elsewhere.
European retailers have previously complained that they face unfair competition from overseas competitors who claim to not adhere to strict EU product standards.
Shein and Temu have previously said they will work with regulatory and consumer standards. Temu says there are 92 million users in the EU, while Shein says there are over 130 million.
Prior to US tariffs, platforms like Shein and Temu relied on so-called “minimum” exemptions to ship low-value items directly to US customers without paying missions or import taxes.
