BRUSSELS, Nov 19 (Reuters) - European finance ministers

have agreed to bring forward to next year customs duties on

low-value parcels to crack down on cheap Chinese e-commerce

imports from online platforms like Shein and Temu.

Here are details of Europe's concerns around cheap

e-commerce imports, and the actions the European Union is

taking.

WHAT IS THE PROBLEM?

The EU has a "de minimis" customs duty exemption for

e-commerce parcels arriving in the bloc valued at less than 150

euros ($174).

Online platforms like Shein, Temu, AliExpress

and Amazon Haul send clothes, accessories and

gadgets from Chinese factories directly to shoppers at

rock-bottom prices thanks to the customs waiver.

The number of low-value e-commerce packages arriving in the

bloc doubled last year to 4.6 billion. More than 90% of them are

from China, according to the Commission.

The EU executive estimates some 65% of small parcels

entering the EU are undervalued to avoid customs duties.

It also sees risks of harm to consumers from non-compliant

products, of environmental damage from shipping products with a

short lifespan, and of damage to EU industry, notably retailers,

from the import surge.

The U.S. scrapped its own "de minimis" policy that allowed

duty-free entry to parcels worth less than $800, leading to

concerns that cheap Chinese imports would divert more to Europe.

WHAT DOES THE EU PLAN?

The EU plans an overhaul of its customs system with the

creation of an EU Customs Authority and an EU Customs Data Hub

to replace IT infrastructure in EU members, saving them up to 2

billion euros a year, according to the Commission, and allowing

greater coordination.

The EU is a customs union, meaning there is a common tariff

on imports from non-member countries, and no tariffs on trade

between EU countries. But each country has its own customs

agency, and the bloc currently has 189 different customs IT

systems, which is why the data hub is needed, said Dutch

lawmaker Dirk Gotink, who oversees the reforms for the European

Parliament.

The data hub will have to work with European technology

firms, given the sensitivity of the information.

"The data is basically an MRI scan of the European economy

and of trade flows; it is extremely sensitive and access to this

data must be very strictly regulated," Gotink told Reuters in an

interview.

The rollout giving e-commerce companies access to the data

hub is only scheduled for 2028, the date when the current 150

euro de minimis exemption is due to be abolished. For many, that

is too slow.

SHORT-TERM FIXES

The bloc wants to introduce a "simplified temporary customs

fee" on low-value e-commerce packages, possibly in November

2026. This single percentage-based duty on all packages is set

to be decided by finance ministers at a December 12 meeting.

The Commission has also proposed a 2 euro handling fee for

low-value e-commerce packages delivered directly to consumers or

50 cents for parcels handled by warehouses. Online retailers or

importers would be liable, and this would be in addition to the

temporary customs fee.

The handling fee is likely to be introduced in November

2026, or earlier if an IT solution can be found to support its

implementation.

COUNTRIES JOSTLE FOR CUSTOMS AGENCY

Several countries including France, the Netherlands, Poland,

and Portugal are bidding to host the new EU customs authority

ahead of a November 27 deadline.

France has put forward the northern city of Lille, near the

border with Belgium, as a host city, while Poland is arguing for

Warsaw, already the headquarters of European border and coast

guard agency Frontex. Portugal has proposed Porto.

($1 = 0.8632 euros)