How France’s push to regulate low-cost parcels could reshape European e-commerce, protect local businesses, and address environmental concerns.
France’s Bold Proposal: Leveling the E-Commerce Playing Field
France is calling on the European Union to introduce fees on low-cost e-commerce parcels entering the EU, especially from non-EU countries like China. This move targets online giants such as Shein and Temu, whose ultra-cheap products have flooded European markets, often escaping value-added tax (VAT) and customs duties. French Economy Minister Eric Lombard and Public Accounts Minister Amélie de Montchalin argue that these changes are necessary to protect European businesses, ensure consumer safety, and address mounting environmental concerns.
The Scale of the Challenge
- A Surge in Parcels:
In France alone, around 1.5 billion e-commerce packages are delivered annually, with approximately half originating from China. - Low-Value Goods Dominate:
About 800 million parcels each year are valued under €150-the threshold below which no customs duties are currently applied. - Market Impact:
The average price of items bought from platforms like Shein and Temu is just €8, making them highly attractive to price-sensitive consumers.
Why Is France Acting Now?
Unfair Competition
European retailers and policymakers have raised alarms that the current duty-free policy gives platforms like Shein and Temu an unfair advantage. By avoiding customs duties and VAT, these companies can offer rock-bottom prices, putting intense pressure on local businesses that must comply with EU tax and safety regulations.
Safety and Counterfeiting Risks
Many of these low-cost imports bypass safety checks, raising the risk of hazardous products and rampant counterfeiting. French officials warn that this not only endangers consumers but also undermines reputable brands and erodes public revenues.
“This poses a risk to the French, because the products are dangerous, to brands because of massive counterfeiting, and to public finances because the diversions are also major,” said Budget Minister Amélie de Montchalin”
Environmental Concerns
The environmental impact is another key issue. The surge in small parcels, often shipped individually over long distances, increases carbon emissions and packaging waste. EU officials have highlighted the “significant environmental and climate damage” caused by these shipments.
The Proposed Solution
Immediate Handling Fees
France proposes introducing a small, flat management fee-described as “a few euros” per parcel-on each low-value package entering the EU, starting as early as 2026. The fee would be charged to importers or platforms, not directly to consumers, and would help fund stricter customs controls and compliance checks.
Bridging to EU Reform
This measure is intended as a temporary solution until the EU’s planned customs reform takes effect in 2028, which will eliminate the duty-free threshold for parcels under €150. The French government stresses the need for a coordinated EU-wide approach, noting that any such fee requires agreement among all member states.
Increased Inspections
France also plans to triple the number of parcels it inspects, focusing on safety, labeling, and environmental compliance. Authorities will publish lists of non-compliant products withdrawn from online platforms, further pressuring e-commerce giants to follow EU rules.
International Context
France’s initiative follows the United States’ recent decision to scrap its “de minimis” policy, which allowed duty-free entry for parcels under $800. The US change, effective this week, adds urgency to France’s call for similar action in Europe.
Industry and Political Reactions
- Retailers:
European retailers broadly support the proposal, arguing it will help restore fair competition and protect local jobs. - Platforms:
Shein has stated it complies with all laws and regulations, while Temu has not commented publicly. - EU Lawmakers:
Some EU countries, especially in Scandinavia, have criticized earlier EU proposals as too weak and lacking real penalties.
E-Commerce Growth in France
Despite these challenges, e-commerce in France continues to grow rapidly:
- Growth Rate:
E-commerce spending rose by 7.4% in 2024, four times faster than physical retail. - Share of Spending:
Online purchases now account for 28% of French consumer spending. - Marketplace Boom:
Marketplaces like Shein and Temu saw spending jump by 22% in 2024.
What Happens Next?
The French government will present its proposal to EU counterparts in the coming weeks, seeking consensus for a bloc-wide approach. If adopted, the new fees could take effect as early as 2026, with full customs reform slated for 2028.
A Defining Moment for European E-Commerce
France’s push for EU-wide fees on cheap e-commerce parcels marks a pivotal moment for the European digital economy. The proposal aims to balance consumer access to affordable goods with the need to protect local businesses, ensure product safety, and address environmental concerns. As the debate unfolds, the outcome will shape the future of online shopping in Europe and beyond.
Key Takeaways:
- France wants the EU to impose handling fees on low-value parcels from non-EU countries, targeting platforms like Shein and Temu.
- The fees would help fund stricter customs checks and level the playing field for European retailers.
- The move addresses safety, counterfeiting, and environmental concerns.
- E-commerce in France is booming, but local businesses face growing pressure from cheap imports.
- The proposal could take effect in 2026, ahead of broader EU customs reform in 2028.
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