End of cheap online shopping - EU introduces new fee on parcels

Cheap online shopping is over! The European Union has introduced a fixed customs duty of three euros on small packages, effective from today, July 1st. These are packages worth less than 150 euros, which account for 93 percent of e-commerce in the European Union.

The purpose of this fee is to level the playing field between online retail and traditional retail. Maroš Šefčovič, Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency, stressed that an open e-commerce market in the European Union must ensure that all goods, platforms and sellers are subject to the same rules of compliance and consumer protection, thereby strengthening fair competition, more effective enforcement of regulations and protecting European consumers and businesses. 

The fee is not paid per package, but per each item within the package, explained Andrea Čović Vidović, the Deputy Head of Representation and Head of the Media Team of the European Commission in Croatia. 

“For example a packet with a t-shirt, belt and earrings does not result in one fee but three,” she said. 

Ana Brajković, a consultant and expert in retail, said that there is great interest in cheap online shopping. According to the European Commission, an average of 16 million shipments entered the Union per day last year. 

“I believe that a portion of consumers will still buy because it will still potentially be more affordable for them. But I also believe that a portion of consumers will change their habits, precisely, in the segment related to impulsive buying,” said Brajković. 

The flat rate should remain in force until July 1st, 2028 as a temporary measure, while the EU develops a new digital customs platform. However, this story will not stop at the three-euro customs fee. An additional fee to be paid to the customs service - a handling fee - has also been announced. 

“It will be introduced, according to current announcements, by the end of this year. Most likely on November 1st, however a final decision has not been adopted yet. We also don't have a final decision on the amount of that fee, in the beginning they were discussing 2 euros per item but now they are already talking about 4 euros,” said Melita Buljan, Advisor to the Customs System Sector at the Customs Administration.

Those who ordered a package before July 1st will not avoid the new customs duty. If a shipment from outside the European Union enters the customs procedure after July 1st, the new rules apply and customs duty will be charged.

Source: HRT