The European Union prepares its customs big bang. Last week, the Commission unveiled its proposals “to achieve the most ambitious and comprehensive reform of the EU customs union since its creation in 1968.”
Among the measures announced: the establishment of a single portal that brings together all customs data to allow authorities to have “an overview of the supply chains and production processes of goods entering the EU.” This new system will also simplify and lighten the procedures for companies.
End of the threshold of 150 euros
Through its reform, the European Commission also wants to deal with scammers present on online sales platforms (Amazon, Wish, AliExpress, Shein, etc.) and based outside the EU. To do this, it intends to eliminate the threshold that exempts goods entering the EU from customs duties if their value is less than 150 euros. The aim is to stop allowing carriers to underestimate the value of packages exported to the EU in order to avoid customs duties. A very common practice nowadays:
However, this will not be for tomorrow since the reform should not be applied before 2028 at the latest.
Payment of customs duties at the time of purchase
If the reform enters into force, all packages imported into the European Union will be subject to customs duties. Therefore, the platforms will have new obligations, since they themselves will have to ensure “that customs duties and VAT are paid when buying, so that consumers no longer face hidden costs or unforeseen administrative formalities upon arrival of the package”.
Today, customs duties, when any, are often claimed at the time of delivery, much to the surprise of the consumer who does not always expect them. By treating online platforms as ‘importers of record’, the EU now wants consumers to be ‘assured that all taxes have been paid and that their purchases are secure and comply with EU environmental standards’. environment, safety and ethics’.
Simplified customs duty calculation
The generalization of customs duties to all products imported into the EU will mean a multiplication of procedures for shipping companies. That is why the customs reform provides for a simplification of the calculation of customs duties for “the most common low-value merchandise.” The number of customs duty categories will thus be reduced from several thousand at present to just four.
E-commerce platforms have been in the crosshairs of Brussels for several years. In 2021, the EU had already abolished the VAT exemption on the importation of goods with a value not exceeding 22 euros. This is due to too many abuses by companies established outside the EU who underestimated the value of the goods shipped. Therefore, the payment of VAT is now systematic.
Source: BFM TV
