EU imposes fees on China e-commerce as US, Japan tighten import rules - CHOSUNBIZ

The European Union (EU) has tightened regulations on ultra-cheap direct-purchase goods from China. Following the United States' abolition of its de minimis exemption for small imports from China and Hong Kong and Japan's move to overhaul its tax system on low-priced cross-border purchases, the EU has introduced customs clearance fees, prompting projections that the price competitiveness of China-based e-commerce platforms such as AliExpress, Temu and Shein will weaken. Illustration = ChatGPT According to Reuters on the 1st (local time), starting that day the EU decided to levy a fee (temporary tariff) of €3 (about 5,200 won) per item on e-commerce goods valued at €150 (about 260,000 won) or less brought in from non-EU countries. The levy applies to goods shipped directly to consumers by air. For example, if a package contains several pieces of clothing only, a €3 fee is charged, but if clothing, a toy and a household item—three different categories—are in one parcel, a total of €9 can be charged. The newly imposed fee will be used for administrative expenses such as customs clearance and safety inspections. However, this fee is a transitional measure before the EU introduces a new tariff system in 2028. Going forward, it will be operated under the customs management framework newly established as part of the EU's customs reform. The EU's move appears to be a response to a surge in ultra-cheap direct purchases from China. According to the European Commission, about 5.8 billion e-commerce parcels valued at €150 or less flowed into the EU last year. That is more than a fourfold increase in three years from 1.4 billion in 2022. The EU believes a significant share of these goods are sold via Chinese online platforms. In particular, it is seen as judging that the spike in direct-purchase volumes has increased customs workloads and put European corporations that follow the rules at a price disadvantage. Before the EU, the United States tightened regulations on ultra-cheap direct-purchase goods from China. In May last year, the U.S. abolished the "de minimis" duty-free scheme that had applied to small imports of $800 (about 1.24 million won) or less from China and Hong Kong. Starting Aug. 29 of the same year, it also expanded the scope to cover small imports from all countries. Japan is also moving to overhaul its tax system for low-priced cross-border purchases. Through the 2026 tax reform passed by the Diet at the end of March this year, Japan is pursuing stronger controls on the influx of low-priced goods from China. According to the reform, it abolished the import consumption tax exemption for goods priced at 10,000 yen (about 95,000 won based on actual sales price 16,666 yen) and the 40% tax discount on personal imports. The United Kingdom, concerned that low-priced parcels from China could be rerouted into the country after the EU's action, is considering introducing a similar system. As countries around the world move into a posture of guarding against cheap Chinese goods, China-based platforms have also begun to respond. According to Reuters, Shein is expanding its logistics network in Europe, including Poland, and is shifting strategy from shipping items individually from China to securing local inventory. AliExpress is responding to the policy changes in some countries by displaying prices inclusive of tariff and value-added taxes (VAT). There are also projections that e-commerce air cargo from China bound for the EU could decrease in the short term due to the new measure. According to Reuters, Derek Lossing, an e-commerce and air cargo consultant, expects air freight volumes of goods from Chinese e-commerce platforms heading to the EU to fall by 10% to 35% within weeks after the fee takes effect. Lossing said, "When the United States ended the small-import tariff exemption last year, the European market was a good alternative (for China-based e-commerce platforms), but now there is no market that can replace Europe." Meanwhile, in Korea, measures like the EU's fixed fees on cross-border purchases or abolishing the small-import duty-free scheme have not yet been implemented. However, as cross-border purchases via China-based e-commerce have surged and concerns have grown over the influx of hazardous products, the government is moving to strengthen safety management. Since 2024, the Korea Customs Service, together with related ministries, has expanded safety inspections at the customs clearance stage for cross-border purchase goods and strengthened blocks on the entry of products that do not comply with KC certification and products in which harmful substances have been detected. ※ This article has been translated by AI. Share your feedback here.