By Philip Blenkinsop and Helen Reid
European finance ministers have collectively resolved to advance the imposition of customs duties on low-value parcels to next year, aiming to mitigate the influx of inexpensive Chinese e-commerce imports from platforms such as Shein and Temu.
This article outlines the European Union’s apprehensions regarding affordable e-commerce imports and the subsequent measures being undertaken by the EU.
WHAT IS THE ISSUE?
The EU maintains a “de minimis” customs duty exemption for e-commerce parcels valued below 150 euros ($174) entering the bloc.
This exemption has inadvertently facilitated platforms like Shein, Temu, PDD, AliExpress, BABA, and Amazon Haul, enabling them to dispatch clothing, accessories, and gadgets directly from Chinese manufacturers to consumers at remarkably low prices.
Last year witnessed a doubling in the volume of low-value e-commerce packages reaching the EU, with a staggering 4.6 billion such parcels reported, over 90% of which originated from China, according to the Commission.
The EU executive estimates that approximately 65% of small parcels entering its jurisdiction are deliberately undervalued to circumvent customs duties.
Moreover, the EU identifies potential risks to consumers from non-compliant products, environmental repercussions from the shipment of short-lived goods, and detrimental effects on EU industries—particularly retail—triggered by the sharp surge in imports.
Notably, the United States has discontinued its own “de minimis” policy, which allowed duty-free entry for parcels under $800, raising concerns that cheaper Chinese goods may now be redirected toward European markets.
WHAT ARE THE EU’S PLANS?
The EU is contemplating a comprehensive reform of its customs framework, which would involve establishing an EU Customs Authority alongside an EU Customs Data Hub to overhaul the IT infrastructure across member states.
This initiative could save up to 2 billion euros annually while enhancing coordination, as reported by the Commission.
As a customs union, the EU imposes a common tariff on imports from non-member states, while trade between member nations is tariff-free.
However, the existence of 189 disparate customs IT systems necessitates the implementation of a unified data hub, as articulated by Dutch lawmaker Dirk Gotink, who is supervising these reforms within the European Parliament.
“The data represents an MRI-like depiction of the European economy and trade flows; its sensitivity demands stringent access regulations,” Gotink stated in a Reuters interview.
Access to the data hub for e-commerce companies is projected for rollout by 2028, coinciding with the expected termination of the current 150 euro de minimis exemption—a timeline deemed overly protracted by many stakeholders.
SHORT-TERM SOLUTIONS
The European bloc is poised to introduce a “simplified temporary customs fee” targeting low-value e-commerce packages, potentially as early as November 2026. This fee, a singular percentage duty applicable to all packages, is anticipated to be finalised by finance ministers during their meeting on December 12.
Additionally, the Commission has put forth a proposal for a 2 euro handling fee on low-value e-commerce packages delivered directly to consumers, or 50 cents for parcels managed by warehouses.
Responsibility for this fee would lie with online retailers or importers and would be supplementary to the temporary customs fee.
Implementation of the handling fee is projected for November 2026, or even sooner if a compatible IT solution is established.
NATIONS COMPETE FOR CUSTOMS AGENCY
A competitive selection process is underway among nine countries, including Belgium, France, and the Netherlands, vying to house the new EU customs authority.
France has nominated the northern city of Lille as a potential location, while Belgium has proposed the air cargo hub of Liege, and the Netherlands is advocating for The Hague.
Poland is also in contention, recommending Warsaw, currently the base for the European border and coast guard agency Frontex.
Other potential host cities under consideration by the European Commission include Rome, Porto, Malaga, Bucharest, and Zagreb.
Source link: Tradingview.com.
