Yesterday’s decision is changing the map of commerce – and not only of electronic commerce Ecofin for the imposition of customs duties on European imports of microparcels of value through electronic ordering (eg from AgoShein) up to 150 euros.
The first thing that will happen will be to make the relevant products (which are marketed by Chinese companies like Temu) more expensive and therefore less price competitive than others. But this is provided that the same, first – first Chinese online ordering platforms will not drop below their original prices, absorbing the extra burden that will be brought by the European fees.
On the other hand, until this happens, other European or American platforms will have the opportunity to compete on better terms with the Chinese, although obviously many of the products they trade are made in China and are already burdened more by the tariff war that Washington has started.
Speaking after Ecofin, EU finance commissioner Valdis Dombrovskis said: “We have reached an important political agreement to move forward with the removal of the customs duty relief threshold for goods worth up to €150 entering the EU.
And specifically, we agreed to find a workable solution that will be implemented as soon as possible next year.
This is in response to the increasing volume of goods sold online and shipped directly to customers in the EU from third countries, notably China.
In 2024 alone, 4.6 billion such items were imported, with 91% coming from China.
The imposition of customs duties on such shipments is an important step towards ensuring a level playing field for European businesses and further strengthening our Customs Union.”
Sefkovis: Retailers have repeatedly emphasized the need to remove this distortion of competition
For his part, the EU trade commissioner, Maros Šefković, pointed out that “achieving a political agreement to abolish the current de minimis limit of 150 euros for customs duties sends a strong signal that Europe takes fair competition and defending the interests of its businesses seriously”.
Also, Sefkowitz pointed out that “European businesses, especially retailers, have repeatedly emphasized the need to remove this distortion of competition without delay. This is not a technical question – it is a question of Europe’s ability to defend its economic interests.
The same sense of urgency was echoed by leaders at the recent European Council.
Therefore, we are determined to achieve even faster results – as soon as possible next year, instead of 2028.
The Commission and the Council will continue to work closely with Member States on a realistic, temporary solution that can be implemented as soon as possible. Technical challenges should not delay our action.
Europe must be able to effectively protect its borders and respect fair competition. That is why reforming our Customs Union remains one of my top priorities.”