EU surcharge unlikely to reduce popularity of cheap Chinese goods, experts say
Estonian experts do not think a €3 surcharge on parcels arriving in the European Union from the rest of the world will reduce the popularity of Chinese goods.
Beginning in July next year, if a package worth less than €150 is ordered from outside the EU, the buyer will have to pay a €3 customs duty on it.
Omniva's commercial director Sven Kukemelk said the fee will most likely be included in the price upfront, meaning the buyer will not need to take any extra steps.
"Most platforms today have made a promise to their customers that there will be no added charges. They will include it in their pricing and it will appear in the shopping cart," he said.
The goal of the change is to stimulate local businesses in Europe and reduce the popularity of cheap goods from China. Estonian E-Commerce Association CEO Tõnu Väät does not think the regulation will achieve its aim.
Over the past two years, the volume of parcels ordered from Asia to Estonia has increased tenfold, and consumers were not deterred even when value-added tax was introduced on small parcels a few years ago.
"If the average value of a parcel ordered from China is around €20, then this €3 represents about a 10 percent price increase. A few years ago, the price increase was twice as high, so this will certainly not reduce the volume of parcels ordered from China," Väät said.
However, both Väät and Kukemelk are optimistic that the surcharge will boost the EU's budget.
"This money will go into the European Union budget, which is extremely positive. That money can be used to build defense infrastructure; it is money we can put back into consumption, which will in turn stimulate the economy," Kukemelk said.
"For some reason, I have my doubts that the average citizen will see any benefit from it, that it will actually go toward society. Well, time will tell, but so far there is been no sign that the funds are being directed toward addressing environmental issues, waste management, or improving customs efficiency," Väät said.
Meanwhile, a discussion is underway in Europe on whether to impose an additional €2 packaging fee on all e-commerce goods.
"The proposal is that e-commerce should also be included, meaning they would have to declare packaging and cover the cost of packaging handling. The debate revolves around who exactly should bear this responsibility, especially in cases where the product's manufacturer is located in China," said Estonian Merchants Association head Nele Peil.
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Editor: Marko Tooming, Helen Wright
