France wants extra fee on small packages coming from outside EU

France is calling for handling fees to be imposed on low-cost online orders from platforms such as Temu and Shein, as part of a broader push to tighten customs controls on cheap imports from China.

The move comes amid growing pressure from French officials and retailers who say the current rules unfairly favour ‘fast-fashion’ and low-cost e-commerce giants by allowing millions of low-value parcels to enter the EU without full checks or customs charges.

Budget Minister Amélie de Montchalin and Finance Minister Éric Lombard outlined the proposal during a visit to a parcel sorting centre at Charles de Gaulle airport, one of the main entry points for such deliveries.

“This poses a risk to consumers, because the products can be dangerous; to French brands, due to widespread counterfeiting; and to public finances, due to major losses in tax and customs revenue,” said Ms de Montchalin.

The EU plans to end the duty-free status of parcels worth less than €150, however this is unlikely to happen before 2028.

France wants this to happen sooner in the form of a flat handling fee to help fund tighter border screening.

Some 1.5 billion parcels are sent to French consumers each year, with more than half valued at under €150. 

Ms de Montchalin said France also plans to triple the number of parcels it inspects and publish regular lists of unsafe or non-compliant products withdrawn from sale.

The United States has recently removed a similar low-value exemption for items under $800.

Shein, Temu and Amazon not exempt from VAT

Although some parcels avoid customs duties, VAT (or TVA in French) must now be paid on all goods ordered from outside the EU - including purchases from Shein, Temu and third-party Amazon sellers.

This rule has been in place since July 1, 2021. 

Before then, items under €22 were exempt but this was closed due to abuse and a sharp rise in small parcel traffic.

How VAT works on orders from abroad: 

• Where applicable VAT is normally charged at the time of purchase and included in the online price.

• If not, the delivery company may request payment on arrival.

The standard French VAT rate is 20%, and this applies to most goods from Shein and Temu. 

Amazon products follow French VAT rules: 5.5% for physical books, but 20% for DVDs, Blu-rays, CDs and other non-book media.

Read more: Customs: What allowances are there to take household items from France to UK?

Customs duties still waived under €150 - for now

While VAT applies to all goods, customs duties are only charged if the item is worth more than €150. 

This means that most fast-fashion or low-value tech items - such as a €25 dress or device - are exempt from import duty.

The exemption has been criticised by EU retailers and politicians alike. The European Commission has proposed scrapping it, but the reform is stalled in negotiations and unlikely to take effect before 2028.

France’s proposed handling fee is intended as an interim solution and must be agreed by other EU member states. 

In a statement, Shein said it complies with all applicable laws in the markets where it operates, including France. Temu has not responded to the proposed new fees.