[Text by Guancha Observer Network, Ruan Jiaqi]
According to reports from Agence France-Presse (AFP), the British Broadcasting Corporation (BBC), and others on the 21st, local time on Tuesday, the EU announced its plan to cancel the tax exemption policy for imported small parcels with a value of less than 150 euros (approximately equivalent to 1225.1 yuan RMB).
In place of this, the EU will impose a uniform fee of 2 euros (approximately 16.335 yuan) on each small parcel entering the country directly to consumers' homes annually; if the small parcel is first transported to a warehouse within the EU for storage, the fee will be charged at 0.5 euros (approximately 4.084 yuan) per piece.
The report stated that the new regulations primarily involve small parcels coming from China, which may have a new impact on the business operations of Chinese cross-border e-commerce platforms such as Temu and Shein. Data shows that last year, 4.6 billion such small parcels entered the EU, 91% of which originated from China, and the number is expected to continue growing.
At the regular press conference of the Chinese Foreign Ministry on May 21st, spokesperson Mao Ning responded to this by saying that specific questions should be directed to the relevant authorities in China.
She also said, "I can tell you that China always believes that creating an open and inclusive international trade environment benefits all parties involved. We hope that the EU will adhere to its open commitments and provide a fair, transparent, and non-discriminatory business environment for Chinese enterprises, creating favorable conditions for Sino-European economic and trade cooperation."
Number of imported e-commerce goods under 150 euros entering the EU in 2024. Chart by Financial Times.
According to reports, EU Trade Commissioner Šefčovič proposed charging related handling fees at the European Parliament meeting on Tuesday. He claimed that such a large number of small parcels has placed a huge workload on EU customs staff. He believed that this brings new challenges to ensuring proper inspection of safety and standards for goods entering the EU.
Šefčovič also stated that e-commerce platforms need to pay this fee for each parcel to offset the related costs incurred by the EU each year in dealing with the influx of low-priced goods. According to him, part of the related income will be used to cover the administrative expenses of customs inspections due to the sharp increase in imports of small parcels.
He emphasized that customs officials are already under "great" work pressure, "I don't think this is a tax, but a reasonable management fee. This is a subsidy for the huge workload of customs officials, which should be paid by the platform."
As for the remaining funds, Brussels hopes they can be incorporated into the EU budget. The Financial Times mentioned that the European Commission is under pressure to find direct sources of funding independent of member state governments to repay the 80 billion euros borrowed years ago to establish the COVID-19 recovery fund.
A source familiar with the EU discussions told the Financial Times that although the small parcel tax may not bring significant revenue, it demonstrates initiative and addresses many concerns.
In addition to charging fees, the European Commission also hopes that platforms like Temu and Shein will take on more responsibility. Previously, they claimed that the number of dangerous and non-compliant goods on the EU market had increased, and complaints about so-called "unfair competition" from EU retailers were also rising.
Politico Europe added that the differential fee is also intended to encourage platforms like Temu and Shein to send goods in bulk and then distribute them from warehouses within the EU.
Agence France-Presse reported that charging fees for small parcels aims to help the EU address the challenge posed by the influx of large quantities of cheap goods, seen as an important measure by the EU to strengthen customs management and protect local industries and consumer safety.
To counter the so-called "surge in low-value e-commerce imports," the EU proposed a plan in 2023 to cancel tax exemptions for small parcels valued below 15 billion euros. However, the reform measures containing this initiative were originally expected to be implemented between 2027 and 2028.
According to Politico Europe, the European Commission now supports starting this customs reform next year, with the aforementioned handling fees being one of the temporary measures. The Financial Times reported that EU member states are expected to include this fee in the comprehensive revision of customs rules to strengthen regulation and improve coordination across the single market.
Bloomberg reported that at the end of April, France proposed as a temporary measure, before the implementation of broader European reforms, to impose handling fees on imported small parcels.
French Budget Minister Amelie de Montchalin stated at the time that France would only charge a "small uniform fee" per parcel, equivalent to "several euros" or "several cents" per item. The funds raised through this fee would be used to "fund inspections at entry points."
He also emphasized that the fee should be "paid by importers and platforms rather than consumers."
BBC reported that before the EU took this action, the Trump administration in the United States had already canceled the tax exemption for small parcels from China valued below $800. There was concern that low-cost small items originally destined for the U.S. might flood into Europe, impacting the EU market.
From May 10th to 11th, high-level economic and trade talks between China and the U.S. were held in Geneva, Switzerland. Both sides agreed to reduce tariffs within 90 days, lowering the rate by 115%.
Reuters quoted two logistics experts on the 14th, stating that after the U.S. tariff on Chinese small parcels decreased from 120% to 54%, it quietly dropped further to 30%.
"Clearly, (U.S. President) Trump blinked first. In contrast, China has not made any major or significant changes to its policies," noted American economist Larry Summers on CNN on the 12th. "Sometimes taking a step back leads to greater openness. When mistakes are made, the best course of action is usually to correct them, take a step back, even if it brings some embarrassment."
This article is an exclusive contribution from the Guancha Observer Network and cannot be reprinted without permission.
Original source: https://www.toutiao.com/article/7506805352290304562/
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