[Photo Credit: Reuters]

European ​Union charges on cheap ecommerce packages entering the bloc, which target Chinese platforms such as Shein and Temu, could ‌raise €6 billion a year for the EU budget from 2028 to 2034, a Commission document seen by Reuters on Friday showed.

The estimate, previously unreported, shows the scale of Europe’s crackdown on a flood of cheap ecommerce imports, which it says mostly come from China.

Some 5.8 billion parcels worth less than €150 entered the EU ​last year, a 26% rise from the previous year, according to the European Commission, which estimates the majority were undervalued to avoid ​customs duties.

The EU will impose an additional €2 fee on cheap parcels on November 1, raising the charge per ⁠separate item further after a €3 charge has been imposed since the start of July.

Temu’s owner PDD Holdings (PDD.O), opens new tab said in August that the move would ​have a considerable impact on parts of the business, without quantifying it. Shein (0625.HK), opens new tab makes about a third of its revenue in Europe, and ​its sales in the region had already fallen before the fees were imposed, as it raised prices and cut ad spending.

A European Commission spokesperson declined to comment on the revenue estimate. In a briefing with reporters on Friday a separate Commission official said they could not prejudge the ecommerce revenue.

Dirk Gotink, the European ​Parliament lawmaker leading the bloc’s customs reforms, said the new €2 fee was to tackle “a highly toxic business model of low value non-compliant e-commerce ​imports from China”.

The estimate accounts for an expected decline in the numbers of low-value parcels entering the EU as Brussels expects retailers to adjust to the measures.

The EU fees follow similar moves by the US last year to scrap duty-free treatment of online orders to address concerns over unfair competition and unsafe products.

The Commission estimates some 90% of the fees collected will go ​into EU coffers and 10% ​to member states, but that could ⁠change if member states push to keep more of the proceeds, with negotiations over the 2028-2034 budget ongoing. Currently, EU member states keep 25% of the fees.

Chinese ecommerce groups have already begun adapting. AliExpress, owned ​by Chinese ecommerce giant Alibaba (9988.HK), opens new tab, said it was increasing local warehousing in response to the fees, but ​warned the charges ⁠would hurt low-income households in Europe and “exacerbate the cost-of-living crisis”.

Temu has been offering some shoppers a discount on the fees, according to screenshots seen by Reuters, highlighting the pressure to limit sticker shock for consumers used to ordering €3 jewellery and €5 dresses. Temu did not respond to a request for ⁠comment.