EU to impose flat tax on small items ordered online

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The EU plans to levy a flat fee on billions of small packages entering the bloc, mainly from China, in a fresh blow to online retailers such as Temu and Shein.

The European Commission circulated a draft proposal on a handling fee on Monday after pressure from member states whose customs authorities are overwhelmed by the 4.6bn items annually imported directly to people’s homes.

The proposal, seen by the FT, does not set the fee level, but people familiar with the commission’s thinking suggested it would be about €2. 

Some of the money would cover customs costs but also go into the EU budget, adding billions annually.  

Trade commissioner Maroš Šefčovič has promised to tackle the surge in packages, which he said had led to an increase in dangerous and non-compliant goods and complaints by EU retailers of unfair competition.

This is a developing story