2024-09-07 12:13:35
In the discussion about Asian shopping portals such as Temu and Shein, the Austrian Finance Minister Magnus Brunner (ÖVP) is also in favor of abolishing the duty-free limit of 150 euros. Most recently, European trade associations and the German Economics Minister Robert Habeck (Greens) called for an end to this. The background to this is the enormous volume of packages from China that are delivered to the EU.
The Asian online platforms mainly use air freight. For orders from non-EU countries, no import fees have to be paid for packages with a value of less than 150 euros. Recently, authorities have increasingly discovered defects and violations of regulations, such as under-invoicing, in third-country products sent to the EU.
The EU Commission has therefore already proposed a number of changes in the area of e-commerce. For example, customs exemptions are to be eliminated and online sales platforms are to be made more responsible by making them responsible for collecting customs duties and sales tax and making the necessary data on internet sales available on a newly implemented EU customs data platform. Brunner does not think this is happening quickly enough. “We are committed to giving priority to the regulations relating to e-commerce and not waiting until the planned implementation of the EU customs data platform in 2028,” said the finance minister in a press release. “This is about the very task of customs. Namely, protecting the European internal market and fair trade and the same rules for everyone.”
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What impact will abolishing the €150 duty-free limit have on e-commerce businesses operating in the EU?
Table of Contents
Abolishing the Duty-Free Limit: A Step Towards Fair E-Commerce
In recent times, there has been a growing debate about the duty-free limit of 150 euros on packages from non-EU countries, particularly those from Asian shopping portals such as Temu and Shein. The Austrian Finance Minister Magnus Brunner and German Economics Minister Robert Habeck, along with European trade associations, have joined the chorus calling for an end to this exemption [[1]]. But what are the reasons behind this demand, and what changes can we expect in the e-commerce landscape?
The Background
The main reason behind this push is the enormous volume of packages from China that are delivered to the EU, mostly through air freight. Currently, no import fees need to be paid for packages with a value of less than 150 euros, making it an attractive option for online shoppers. However, this has led to concerns about under-invoicing and violations of regulations in third-country products sent to the EU [[2]].
The Current Regulations
Until recently, postal consignments not exceeding a value of EUR 150 could be declared for free circulation without a formal customs declaration [[3]]. This loophole has been exploited by some online platforms, leading to a loss of revenue for the EU and unfair competition for European businesses.
The Proposed Changes
The EU Commission has proposed a number of changes to address these concerns. One of the key changes is the elimination of customs exemptions for packages from non-EU countries [[1]]. This would mean that all packages, regardless of their value, would be subject to import fees. Additionally, online sales platforms would be made more responsible by making them liable for ensuring compliance with EU regulations.
Benefits of Abolishing the Duty-Free Limit
Abolishing the duty-free limit would have several benefits for the EU and its businesses. Firstly, it would help to level the playing field for European companies, which are currently at a disadvantage due to the exemption. Secondly, it would generate additional revenue for the EU, which could be used to fund important projects and initiatives. it would help to reduce the number of violations and defects in third-country products sent to the EU.
Conclusion
The demand to abolish the duty-free limit of 150 euros is gaining momentum, with several influential voices calling for an end to this exemption. The proposed changes would help to create a fairer and more regulated e-commerce environment, where all players operate on a level playing field. As the EU continues to grapple with the challenges of e-commerce, it is essential to stay informed about the latest developments and how they may impact your business.
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$800 duty-free exemption
Abolishing the Duty-Free Limit: A Step Towards Fair E-Commerce
In recent times, there has been a growing debate about the duty-free limit of 150 euros on packages from non-EU countries, particularly those from Asian shopping portals such as Temu and Shein. The Austrian Finance Minister Magnus Brunner and German Economics Minister Robert Habeck, along with European trade associations, have joined the chorus calling for an end to this exemption [[1]]. But what are the reasons behind this demand, and what changes can we expect in the e-commerce landscape?
The Background
The main reason behind this push is the enormous volume of packages from China that are delivered to the EU, mostly through air freight. Currently, no import fees need to be paid for packages with a value of less than 150 euros, making it an attractive option for online shoppers. However, this has led to concerns about under-invoicing and violations of regulations in third-country products sent to the EU [[2]].
The Current Regulations
Until recently, postal consignments not exceeding a value of EUR 150 could be declared for free circulation without a formal customs declaration [[3]]. This loophole has been exploited by some online platforms, leading to a loss of revenue for the EU and unfair competition for European businesses.
The Proposed Changes
The EU Commission has proposed a number of changes to address these concerns. One of the key changes is the elimination of customs exemptions for packages from non-EU countries [[1]]. This would mean that all packages, regardless of their value, would be subject to import fees. Additionally, online sales platforms would be made more responsible by making them liable for ensuring compliance with EU regulations.
Benefits of Abolishing the Duty-Free Limit
Abolishing the duty-free limit would have several benefits for the EU and its businesses. Firstly, it would help to level the playing field for European companies, which are currently at a disadvantage due to the exemption. Secondly, it would generate additional revenue for the EU, which could be used to fund important projects and initiatives. It would also help to reduce the number of violations and defects in third-country products sent to the EU.
The Impact on E-Commerce Businesses
The abolition of the duty-free limit would have a significant impact on e-commerce businesses operating in the EU. Online platforms would need to adapt to the new regulations, which would require them to collect customs duties and sales tax on all packages, regardless of their value. This could lead to increased costs for consumers, but it would also ensure that European businesses are not at a disadvantage.
In addition, the EU Commission’s proposed changes would require online sales platforms to be more transparent and accountable for ensuring compliance with EU regulations. This would help to reduce the number of violations and defects in third-country products sent to the EU, which would ultimately benefit consumers.
Conclusion
The demand to abolish the duty-free limit of 150 euros is gaining momentum, with several influential voices calling for an end to this exemption. The proposed changes would help to create a fairer
