France to tax small parcels from China amid tariff fallout fears

[PARIS] France will from next year impose a handling tax for every small parcel sent from China sent by platforms such as Shein and Temu, a minister said on Tuesday.

The charge was announced by public accounts minister Amelie de Montchalin amidst international concerns that tariffs imposed by US President Donald Trump could force more Chinese goods into other markets.

Montchalin said the tax would be a “a few euros” for each parcel, or a few cents for each article. The aim, she added, was for platforms to pay rather than the consumer.

The European Union is aiming to reform its customs union by 2028 and the minister’s office said France wanted “the rapid establishment at the European level of a handling fee mechanism for each small package entering Europe.”

French officials say that unless a European system is set up, parcels taxed by France will just enter the EU through another member country.

Money raised through the French tax would be used to finance inspections, the minister’s office told AFP, and the tax would be replaced when a European system starts.

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The European Commission this year recommended ending tax free entry for packages worth less than 150 euros (S$222). Some 4.6 billion packages falling into the tax-free bracket entered the EU in 2024, according to official figures. More than 90 per cent came from China. About 800 million entered France.

France’s Confederation of Small and Medium Enterprises (CPME) on Tuesday called for a “state of emergency” to counter the “invasion” of small packages bought online. AFP