EU to impose flat tax on small items ordered online, FT reports

THE European Union plans to levy a flat fee on billions of small packages entering the bloc, mainly from China, the Financial Times reported on Tuesday, citing a proposal.

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The European Commission plans a handling fee for customs due to a surge in 4.6 billion annual home imports.
The proposed fee is expected to be around 2 euros but has not been officially set yet.
China urges the EU to keep trade fair and transparent for Chinese businesses amid the new fee plan.

The European Commission circulated a draft proposal on a handling fee on Monday after pressure from member states whose customs authorities are overwhelmed by the 4.6 billion items annually imported directly to people's homes, the newspaper added.

The proposal does not set a fee level, but the newspaper reported it would be about 2 euros ($2.25), citing people familiar with the commission's thinking.

China said it hoped the EU would abide by its commitment to openness and "provide a fair, transparent and non-discriminatory business environment for Chinese firms".

"China has always believed that creating an open and inclusive international trade environment is in the common interest of all parties," foreign ministry spokesperson Mao Ning said when asked about the EU's tax plan.