EU’s New €2 Small-Parcel Fee & €150 Exemption Removal: What Consolidators from China Must Plan For in 2025-2028
Introduction
If you ship small parcels or run a consolidation service importing goods from China into Europe—or manage forwarding into North America that also depends on EU hubs—2025 should be a turning point for your cost modelling, operations, and growth strategy. The European Commission, backed by the European Parliament, is pushing for sweeping changes to customs rules for e-commerce. Two of the most significant proposals are:
- Introducing a €2 (approx. US$2.25) handling fee on online parcels entering the EU from outside; items shipped via EU warehouses may face a lower fee (~€0.50). 阿尔瓦雷斯与马尔萨尔+4Reuters+4forestshipping.com+4
- Abolishing the €150 customs‐duty exemption for low-value import consignments; meaning all goods, regardless of value, potentially become subject to import duties and full customs oversight. Reuters+3阿尔瓦雷斯与马尔萨尔+3twobirds.com+3
These changes are part of larger reforms of the EU Customs Code, E-commerce rules, product safety, and platform accountability. The proposals still need final adoption (some rules slated to apply by March 2028) but earlier phasing or enforcement steps may begin ahead of schedule. 阿尔瓦雷斯与马尔萨尔+2twobirds.com+2
For consolidators & freight forwarders handling shipments from China, this means:
- Hidden costs may soon become explicit in every parcel or batch.
- Projects that once benefited from low-value exemptions will need re-costing.
- The logistics chain—shipping modes, warehousing, customs documentation—needs retooling.
This article will explore:
- Current status of EU’s reform proposals
- Breakdown of how these changes affect consolidation cost components
- Strategic levers to adapt / mitigate cost rise
- A 90-day roadmap for consolidators
- Risk factors and what to monitor closely
1. EU Customs Reform: What’s Proposed & What’s Behind It
1.1 The Scale of the Problem
- In 2024, EU customs processed approximately 4.6 billion low‐value parcels, roughly 12 million per day. 欧洲议会+2Reuters+2
- 91% of those parcels came from China via online platforms like Shein, Temu, and others. Reuters+2欧洲议会+2
- Concerned are safety, product compliance, fraud, undervaluation, unfair competition, environmental & waste issues, and a burden on customs / surveillance authorities. 欧洲议会+2Eunews+2
1.2 Key Proposed Changes
- €2 handling fee per parcel for non-EU online purchases directly delivered to consumers; €0.50 for parcels from EU warehouses. It is proposed to be paid by online retailers/platforms, not by the consumer (though to some extent costs may be passed on indirectly). vatcalc.com+3Reuters+3欧洲议会+3
- Removal of €150 exemption: all consignments, no matter how low value, will potentially face customs duties. Also, proposed syncing of VAT rules (Import One-Stop Shop (IOSS) and related mechanisms) to make VAT collection and duty clearer. vatcalc.com+3阿尔瓦雷斯与马尔萨尔+3twobirds.com+3
- Platform liability / role: online marketplaces likely to take on more responsibility (importer of record, ensuring compliance of listings, matching product to EU safety and environmental regulations). 阿尔瓦雷斯与马尔萨尔+2欧洲议会+2
1.3 Timeline & Implementation
- Some aspects are proposed now; total reform (especially removal of exemption) is targeted for 1 March 2028 under current drafts. 阿尔瓦雷斯与马尔萨尔+1
- EU Parliament has adopted resolutions supporting the €2 fee + abolition of the exemption; these still require negotiation with the Council and final legislative approval. Eunews+2欧洲议会+2
2. How Consolidation Costs Will Shift: Components & Pressure Points
Consolidators who gather many small parcels / SKUs from China (or via Chinese origin) and ship to EU or use EU hubs will see several cost levers change. Here’s a breakdown.
| Cost Component | Before Reform | After Reform | Which SKUs / Shipments Most Affected |
|---|---|---|---|
| Customs duties on low value items | Many small consignments under €150 escaped duties; VAT/IOSS might handle VAT but duty often exempt. | Duties potentially apply to all consignments regardless of value. That adds a cost per item even for very low-price goods. | Ultra-low cost, low margin SKUs; small accessories, fashion trinkets, non-luxury items. |
| Handling / processing fees | Parcels processed under lower compliance regimes; fewer inspections; less per-parcel overhead. | Each parcel may incur a €2 fee (outside EU origin), plus costs of checking for safety, origin, documentation. | Direct-to-consumer small parcels, especially from Chinese online retailers. |
| Warehousing / consolidation | Many consolidators used origin warehouses or directly forward small parcels without needing high local destination stock. | Increased incentive to use EU warehouses, to avoid higher handling / inspection fees and reduce cross-border burdens. This adds warehousing cost, compliance cost, possibly stock-holding. | SKUs with enough demand in EU; higher value items; items that need quicker delivery. |
| Customs documentation & compliance | Simplified datasets for low value parcels; less scrutiny; minimal product safety checks (often after arrival). | More robust documentation required; origin, HS codes, safety / compliance documentation; greater enforcement; penalties for non-compliance. | Sellers forwarding many small shipments; platforms that don’t enforce origin/safety compliance well. |
| Pricing / margins | Low value SKUs sold at razor-thin margins but benefited from exemption and low overhead. | Margins will be squeezed: duty + handling + compliance + possible freight adjustments. Need to increase sale price or absorb cost. | Low margin categories; price-sensitive customers. |
3. Strategic Responses: How Consolidators Should Adapt
To manage or mitigate these cost increases, consolidators (and those sourcing from China) should adopt multiple strategies.
3.1 Reframe Your SKU Portfolio & Pricing
- Segment SKUs by value, margin, demand urgency: high margin / urgent SKUs vs low value & slow-moving ones.
- For low value items, consider raising sale prices slightly to cover handling + duty. Or package small items together to reduce per-unit duty & handling charge.
- Communicate clearly with customers if duties/VAT are included (“Delivered Duty Paid” or similar) to avoid surprises and returns.
3.2 Leverage EU Warehousing / Regional Hubs
- Using destination / EU-based warehouses can reduce the cost of handling fees (since cheaper fee for EU warehouse shipments is proposed) and allow consolidation closer to consumer.
- Warehousing gives flexibility for stock buffering, safety stock, re-packaging or checking compliance before last-mile.
3.3 Optimize Freight & Consolidation Modes
- Consolidate more at origin: ship larger batches to EU hubs rather than many small parcels. Use full or LCL container shipments where possible.
- Evaluate sea freight + road/rail last-mile vs direct parcel shipping. The trade-off may shift in favor of slower but more reliable bulk shipments.
3.4 Improve Compliance, Documentation & Platform Setup
- Ensure every shipment has accurate HS code, clear origin, proper labelling, compliance with EU safety/environmental rules (CE marking, REACH, toy safety etc.).
- Platforms & forwarding services need to build or adjust systems to ensure that compliance is not just a checkbox but enforced (e.g. refusing non-compliant vendors).
- Use technology (inventory tagging, data capture, product passports, blockchain / traceability where feasible) to manage documentation overhead and audit risks.
3.5 Re-Evaluate Fulfillment Strategy for EU vs NA customers
- For EU customers, using EU warehouses/hubs simplifies duties & VAT, reduces cross-border shipping.
- For North America or cross-Atlantic shipments, costs may shift: origin to EU hub + onward NA vs direct from China to NA. Compare which path is lower total landed cost including duties / handling.
3.6 Negotiate with Platforms, Suppliers & Forwarders
- If you sell via or use services of large platforms (Shein, Temu, etc.), push for terms that absorb or share handling fee. Maybe platforms will absorb some cost for vendor / supplier to remain competitive.
- Forwarders can bundle handling, or negotiate bulk rates for compliance and customs brokerage.
- Suppliers (in China) may adjust their packaging, labelling, documentation to reduce risk & speed clearance.
4. Case Examples & Scenarios
Practical examples help understand the cost & strategy trade-offs. These are hypothetical but grounded in typical real world volumes and costs as of mid-2025.
Example A: Low-Cost Accessories Brand (EU Focused)
- SKU: small fashion accessories (earrings, belts, scarves), value ~€10-€25.
- Volume: 5,000 pieces/month. Previously sent via small parcel forwarding from China directly to EU customers; many orders under €150, exempt from customs duty.
Before Reform:
- No duty on many parcels, minimal handling overhead; low warehousing in EU; freight affordable via small parcel forwarding or small courier / express.
After Reform:
- Each parcel now could face €2 handling fee + customs duty even for value <€150. Freight cost may rise due to stronger customs checks. Need to either raise product price, absorb cost, or shift to sending bulk cartons to EU hub and fulfill from there.
Adaptation Strategy:
- Aggregate orders into batches to send full or LCL containers to EU warehouse.
- Use EU warehouse to stage stock and fulfill last-mile locally.
- Transparent pricing: show “duties included” or “shipping + handling” so customer sees real cost.
Estimate: If handling + duty adds €3-€5 per item in small parcel, margin could shrink ~15-25% unless costs are optimized.
Example B: Mixed Value / Time-Sensitive Goods (Electronics / Gadgets)
- SKU: phone accessories, small electronics, value ~€40-€80; some urgent demand (new releases etc.).
- Volume: 1,000 units/month; combined direct & via reseller channels in both EU & NA.
Before Reform:
- Many parcels still exempt; direct express / small parcel used for urgent shipments; margin allowed for premium shipping.
After Reform:
- Urgent shipments likely to incur handling + duty; slower sea+warehouse route may be more cost-efficient for non-urgent stock.
Adaptation Strategy:
- Split strategy: urgent SKUs shipped with premium channels; non-urgent via bulk to warehouses.
- Negotiate with freight / express carriers for compliance / customs-ready shipping to reduce delays.
Estimate: Cost per urgent item may increase 5-10%; but cost of non-urgent stock drops over time if bulk & warehouse methods used. Improved reliability may reduce returns / customer complaints, restoring margin.
5. 90-Day Action Plan for Consolidators & Sellers
Here is a practical schedule to get ready for these upcoming EU reforms.
| Timeframe | Actions |
|---|---|
| Days 0-30 | • Audit all SKUs: classify by value, profitability, urgency. • Identify ES (European) warehouses/hubs & partners. • Update cost models to include estimated handling fee + duty for low-value items. • Review your forwarder / courier partners: do they have customs compliance capability? • Assess packaging / labelling / HS code accuracy for all SKUs. |
| Days 31-60 | • Pilot bulk shipments to EU hubs for low value items. • Start fulfilling some orders out of EU warehouses to reduce cross-border small parcel volume. • Adjust pricing and customer communication: show “duties included” or “estimated duty + handling”. • Seek contracts or agreements with platforms or logistics providers to share cost burdens or reduce handling overhead. |
| Days 61-90 | • Decide on long-term warehouses / fulfillment network in EU based on pilot data. • Lock in contracts / volume discounts for freight / courier services that align with customs compliant operations. • Monitor legislative progress: when formal passage of reforms occurs, be ready to fully switch. • Implement system or software upgrades to support customs data collection, tracking, platform compliance, potentially integrate with IOSS or future EU customs data hub. |
6. Risk Factors & What to Monitor Closely
To avoid surprises, consolidators or sellers should watch for:
- Final legal adoption dates: Reforms may be modified between now and 2028, including gradual phasing. Implementation dates matter.
- Customs duty rates + definition of goods: How “goods” are classified, what HS codes, rules of origin. Products mis-classified may face penalties.
- Tariff & VAT double charges: Be sure to understand VAT obligations via IOSS or deemed importer status, to avoid unexpected VAT costs.
- Market competition & customer behavior: Will customers accept higher prices or slower shipping? Some low-cost competitors may try to absorb parts of cost or shift large volumes to non-EU platforms.
- Logistics capacity: EU warehouses, customs authorities, courier networks may get overloaded as many adapt. Delays & cost spikes possible during transition.
- Enforcement actions / inspections: Increased safety, sustainability, compliance checks. Goods that fail may be delayed, seized, or forced to conform (relabel, recertify etc.).
7. Long-Term Implications & Strategic Considerations
- Changing business models: Moves toward “local delivery / local stock” for EU consumers; less reliance on direct low-value parcels from China.
- Platform accountability: Online marketplaces will likely have more legal responsibility for what’s sold, including origin, compliance, safety. Sellers may need stronger governance.
- Software & Systems Investment: Logistics, shipping, e-commerce platforms will need tools to compute duty/VAT at checkout, capture correct data, integrate with customs regimes.
- Shift in sourcing & manufacturing: Some brands may consider sourcing closer to Europe or from regions with lower customs burden to reduce cross-border cost.
- Fair competition & regulatory leveling: EU reforms aim to level playing field between EU producers and non-EU sellers; those who bypass compliance likely to face penalties.
Conclusion
The proposed EU changes — a €2 handling fee for non-EU parcels + removal of the €150 customs duty exemption — represent a major pivot in how low-value e-commerce will be handled. For consolidators, shipping agents, and sellers whose supply chains hinge on low-value Chinese goods, the cost pressure will rise. But those who plan strategically—optimizing shipments, improving compliance, using EU warehouses, refining pricing—can absorb much of this change and maintain competitiveness.
Now is the time to re-cost, re-route, re-model. Take action over the next months to ensure your consolidation business remains profitable, compliant, and ready for the shifting regulatory terrain.
