Even a single product - worth, for example, one euro - ordered by a European citizen from the well-known Chinese platforms Shein and Temu, from July 1 onwards, will pay €4.
This is because from July 1, the temporary European tariff of €3 per type of commodity will be implemented on each parcel worth up to €150 for products from third countries - and mainly from Asia - entering Europe. For parcels over 150 euros, customs duties already apply.
By the end of June, all parcels worth up to €150 from third countries arrive in Cyprus and the other 26 EU member states without customs duty, as a result of which the European Commission finds that unfair competition is being caused for European companies. The only additional charge that consumers currently pay for purchases up to €150 from third-country platforms is VAT.
Many complaints
In Europe, there were many complaints that businessmen made mass purchases from these platforms - as well as from some others - up to €150, breaking them into parcels of €140-150 - without paying a cent of tax, unlike other entrepreneurs, who brought the same products to the European market through the normal procedure, with one order, as a result of which they paid taxes.
Others are also affected
The measure of the temporary tariff of €3 per item mainly targets direct shipments of small parcels worth up to €150 from China, through the popular platforms around the world Shein, Temu and AliExpress (owned by the Chinese giant Alibaba). The first two are companies of Chinese interests, whose headquarters are located in Singapore and Boston, USA, respectively. AliExpress is an online retail platform, based in China and operating exclusively as an online store.
What about the USA and England?
It is possible, however, that the provisional tariff of €3 per item will also be imposed when purchasing products from companies or platforms in the United Kingdom and the United States of America, as these are also third countries. With this in mind, it is possible that purchases from Amazon will also be affected by the temporary tariff of €3 per item, however, to a lesser extent, as a large part of sales to Cyprus and other partners in the Union come from warehouses or producers within the EU.
Although the Commission's decision concerns "small packages" from third countries, it does not clarify whether the measure (temporary duty) will also affect American and British groups, such as eBay, Walmart Marketplace, ASOS, OnBuy, etc.
It is worth noting that these groups differentiate themselves from low-cost platforms based or based in Asia.
The Department of Customs has issued a relevant announcement for the imposition of a provisional duty of €3 per item for online purchases up to €150 outside the EU. The sale, it is noted, should be made by a seller registered in the IOSS regime (Shein and Temu are linked to the IOSS, to which VAT is also paid).
The measure, according to the spokesman of the Customs Department Giorgos Constantinou, will be in place until 2028. Speaking to "F", he noted that then the new customs Data Hub of the Union will operate, when the normal duty rate will be imposed.
Charging Examples
"F" tried to codify in which cases a temporary duty of €3 will be imposed and how it will be applied to parcels with a charge of up to €150. Also, what will apply in the case of electronic platforms from China that have warehouses in Europe.
– If a package from Shein or Temu or another platform of the same category includes ten different items, such as a pair of pants, two pairs of shoes, underwear, pyjamas, blouses, hair accessories, bracelets, jackets, swimwear and slippers, with the initial bill being €150, the consumer will pay €180 from July 1, while VAT will be added to this amount. That is, he will be charged with an extraordinary duty of €30, which corresponds to €3 per type of product ordered.
– Also, if someone obtains tools, kitchen utensils, dowry items and a pair of shoes from Temu, for example, with the initial bill reaching, for example, €100, with the temporary duty the bill will reach €112. That is, four types of products, for €3 each.
– However, in the event that a consumer buys 20 T-shirts, with an initial charge price of €120, the temporary duty will be €3 and his final bill will increase to just €123, because he ordered only one item.
– If the consumer buys, from Temu for example, 50 glasses at the price of €80, with the addition of the provisional duty the consumer will pay €83.
– If a consumer buys a product from Amazon and the seller is from China or the USA, then at the price of e.g. €100 there will be a duty charge of €3 and he will be asked to pay €103. If the consumer buys the same product from an Amazon producer/supplier, e.g. in Germany or Italy, the provisional duty will not be imposed on him.
Warehouses in the EU and the extraordinary duty
In the event that products from Shein, Temu or other such third-country platforms are transported in large quantities to the EU and entered the warehouses of member countries, then the provisional duty will be imposed upon the entry of the products into the country where the warehouse is located and will be borne by the owner/manager of the warehouse. If he does not pay it, it will have to be paid by the end consumer, for example someone in Cyprus, Greece, etc.
According to Mr. Konstantinou, these two platforms, based on their policy, impose all charges during the initial order. The spokesperson of the Customs Department also called on consumers, when they find that their orders from platforms of Chinese interests are being delivered to them from a European country, to contact the company and request a refund of the extraordinary duty.
