France urges fees on cheap e-commerce packages in EU

LONDON (Reuters) -Fees should be charged on low-value e-commerce packages coming into the European Union from next year, France said on Tuesday, as it seeks greater controls on online platforms such as Shein and Temu that ship cheap items to European consumers duty-free.

The EU plans to scrap its duty-free treatment of packages ordered online that are worth less than 150 euros ($171), but not until 2028, so France's budget minister proposed handling fees as a transitory measure.

Any imposition of fees would have to be agreed by the EU as a whole and applied across all member states.

France is among those who want rapid action, especially as the United States, the biggest market for both Shein and Temu, has scrapped its "de minimis" policy that allowed duty-free entry to parcels worth less than $800, effective this Friday.

European retailers and policymakers have grown increasingly critical of the duty-free policy they say gives Shein and Temu an unfair advantage by helping to contain prices on ultra-cheap products from dresses to smartphones.

These products are shipped directly from factories in China and allowed into the EU without checks on their safety and compliance with the bloc's rules.

"This poses a risk to the French, because the products are dangerous, to brands because of massive counterfeiting, and to public finances because the diversions are also major," Budget Minister Amelie de Montchalin said, as she and Finance Minister Eric Lombard visited a parcel depot at France's Charles de Gaulle airport.

In a statement, Shein said it respects all the laws and regulations across its markets, including France, and that its success is not down to the duty-free allowance.

Temu did not immediately respond to a request for comment.

French customs will increase their screening of packages, prioritising products that could have health impacts like medicines and beauty products, de Montchalin said. It will also start to publish lists of products it withdraws from online platforms over breaches of regulations.

($1 = 0.8787 euros)

(Reporting by Helen Reid and Dominique Patton; editing by Barbara Lewis)