EU to Add 'Customs Handling Fee' on Top of ?3 Tariff for Cross-Border Parcels

[Ebrun Original] Following the introduction of the ?3 customs duty, European cross-border parcels are facing yet another change. On September 16, the EU's new Customs Code was officially adopted. In addition to the temporary ?3 duty on low-value parcels that has been in effect since July 1, the EU has also confirmed a new Union Handling Fee. Under the new rules, this fee will be charged to sellers and platforms—such as Temu, SHEIN, and AliExpress—that sell goods from non-EU countries directly to EU customers via remote sales. The specific amount will be determined separately by the European Commission and will be implemented no later than November 1, 2026. In other words, for Chinese cross-border e-commerce, the cost model for European small parcels is shifting from the previous 'product price + logistics + VAT' to an increasingly complex equation: customs duties + handling fees + compliance costs + fulfillment costs.

01 Beyond the ?3 Duty: What Else Has the EU Added?

Let's first clarify the two easily confused fees. The ?3 fee is a customs duty. Starting July 1, 2026, the EU will remove the existing duty exemption for imported goods valued under ?150. During the transitional phase, relevant small parcels will be subject to a temporary ?3 duty per product category. Note that this is not simply '?3 per parcel.' Suppose a parcel contains: 2 toys, 1 wool coat, and 3 bottles of shampoo. Even though it's a single parcel, because it involves three different product categories, the customs duty would be ?3 × 3 = ?9. The Customs Handling Fee confirmed under the new Customs Code is a separate charge. While the duty addresses 'how much tax is paid on imported goods,' the handling fee covers 'how much it costs customs to process these parcels.' The EU Council has made clear that these two measures are not the same policy. The EU regulation confirms the establishment of the mechanism for this handling fee, but the specific amount is left to the European Commission to determine; no unified standard such as '?2 per parcel' has been finalized. Earlier discussion documents from the European Parliament did include proposals for ?2 per item, reducing to ?0.5 for goods shipped via EU warehouses, but these designs were not enacted in the final text.

02 The 'Low Price' Model Is Unsustainable: Shifting from Direct Shipping to European Warehousing Is the Trend

Fixed fees have different impacts on products of varying price points, and low-priced items are hit first. If an item sells for ?5, a ?3 duty equals 60% of the product price; if it sells for ?30, it's only 10%. Therefore, this reform has a particularly heavy impact on low-value products in the ?5–?10 range. At the same time, the new EU Customs Code opens a door: goods entering the market through customs warehouses used for remote sales will be subject to a lower handling fee rate. In simple terms, this encourages shipping from local European warehouses. As a result, the European market is likely to see further segmentation:

1) Mid-to-high-priced products with stronger functionality and less availability in Europe will be less affected by fixed fees on final prices, continuing to use cross-border direct shipping;

2) Stable-selling, high-frequency consumer goods will shift to European warehouses, or even local inventory and local fulfillment in the destination country.

For Temu, SHEIN, AliExpress, and numerous Chinese independent e-commerce sites, this means European warehousing, semi-managed models, and local fulfillment are no longer optional—they're necessities.

03 Conclusion: Why Is the EU 'Repricing' Cross-Border Parcels?

This EU adjustment is not an isolated policy change. In 2025, 93% of low-value parcels entering the EU originated from China; such parcels accounted for 97.9% of all import shipments but had an average value of just ?8.82 each. Faced with a massive influx of low-value parcels, the EU is reassessing its previous low-value import preferential policies. In fact, markets such as the United States, Australia, and the UK are making similar adjustments. For cross-border e-commerce businesses, a larger trend is taking shape: the benefits of low product value, low duties, and single-parcel direct shipping are gradually diminishing. Going forward, when operating in global markets, companies must recalculate not just product and logistics costs but also duties, compliance, customs handling, and local fulfillment costs.

This article was first published on Ebrun's official website.