Starting on November 1, the European Union (EU) will impose a 2-euro (approximately 17.5 Hong Kong dollars) handling fee on packages originating from outside the EU to curb the influx of inexpensive products from China, especially as the holiday shopping season approaches. According to official EU data cited by AFP, nearly 600,000 small packages entered the EU last year, with about 93% of these low-cost items coming from China and typically sold through platforms like AliExpress and Temu. The EU had previously introduced a 3-euro (approximately 26 Hong Kong dollars) duty on packages valued at under 150 euros starting in July, a measure which has so far led to a 64% reduction in such shipments. This new measure is anticipated to further reduce the volume of cross-border parcels, especially those from China. The fee is not expected to be billed directly to consumers but to be charged to online platforms, sellers, or intermediaries. However, it is possible that these costs could be passed on to shoppers through higher product prices. The handling fee is likely to be calculated based on the quantity of items within a package rather than its value. For example, a package containing 10 t-shirts would incur a 2-euro fee, while a package with 2 hats and 10 t-shirts would result in a 4-euro charge.
The imposition of these charges follows the EU's efforts to address the administrative burden caused by the sheer volume of small packages from China. The expectation is for this new fee to significantly reduce the influx of low-cost Chinese products, alleviating the strain on customs authorities and potentially improving the overall market environment for EU-based businesses.