The European Union is set to introduce a new tax on small packages entering the EU, with most of these packages coming from Chinese e-commerce companies. The tax will be a flat rate of 2 euros per package. This move comes after the EU received billions of small packages last year, with over 90% of them coming from China.
Maros Sefcovic, the EU’s trade commissioner, said that this new measure means that packages worth less than 150 euros will no longer be exempt from customs duties. Companies like Temu and Shein, which are popular Chinese online retailers, will have to pay this tax. Sefcovic explained that the huge volume of packages has increased the workload of EU customs officials, and the tax will serve as compensation for their work.
The EU hopes that some of the revenue generated from this tax will go into its budget. The tax will only apply to packages that are sent directly to customers, while packages sent to warehouses will be taxed at a lower rate of 0.50 euros. This move is seen as a way for the EU to level the playing field for its own retailers, who have been complaining about unfair competition from Chinese e-commerce companies.
The EU’s decision comes after the US introduced its own tariffs on Chinese goods, including small packages. The US had initially imposed a 120% tariff on these packages, but later reduced it to 54%. However, a flat tax of 100 dollars per package remains in place.
Many EU countries have expressed concerns about the large number of cheap products being sent to the EU market by Chinese e-commerce companies. Retailers in Europe have also complained about the unfair competition and the fact that these companies are not following EU regulations.
The EU’s move is seen as a way to address these concerns and to ensure that all companies operating in the EU market are playing by the same rules. The new tax is expected to generate significant revenue for the EU, and it will also help to reduce the huge volume of packages that are currently flooding the EU market.
Sources:
– BBC News
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