EU starts protectionist measures, increasing prices of Chinese E-Commerce imports

At Amazon in Spain, France and Italy, Chinese sellers already make up more than half of the largest merchants in the marketplace, says market research firm Marketplace Pulse. The Thuiswinkel Markt Monitor shows that we in the Netherlands spent 1.1 billion euros on products from abroad in 2019. Chinese online stores, such as AliExpress, are in first place with almost 33 percent. One reason for the rise of Chinese retailers is that they supply European customers directly through platforms such as Amazon or AliExpress. They also often pay no import duties and pay little attention to product safety. At the beginning of July, new EU tax rules will come into effect for orders from non-European online retailers. The most important change is the abolition of the current exemption limit of 22 euros for direct imports. As a result, 19 percent import tax is due on all packages. In addition, dealers will have to complete a customs declaration for all shipments in the future. The prices of Chinese articles will therefore rise sharply. If you want to spend something of 22 euros, you will soon pay 4 euros 84 in VAT and approximately 13 euros in handling costs for the delivery person. Then you do not lose 22 euros for the product, but almost 40 euros. Brussels expects a lot from the measures. The tax reform will ensure “fair competition between European and foreign operators in the e-commerce market,” the Brussels government writes in a brochure. It expects an additional tax revenue of 7 billion euros per year. Organization GS1 advises retailers to let marketplaces take care of the VAT return because they know who is buying, at what price and where the package must be delivered. They can also provide the authorities with unique identifiers for the product, the Global Trade Item Number (GTIN), the sales transaction a Global Shipment Identification Number (GSIN) in which the price is recorded and the package identification code, a GS1 Serial Shipping Container Code (SSCC). to enable an automated check. In this way, the customer can look forward to his package without any problems.

Source: EU verscherpt regels voor internationale onlinehandel, Chinese pakketjes fors duurder – Emerce

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