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EU's 3-Euro Duty on Online Purchases Sparks Confusion, Targets Temu and Shein
๐Ÿ‡ฌ๐Ÿ‡ท Greece /Economy & Trade

EU's 3-Euro Duty on Online Purchases Sparks Confusion, Targets Temu and Shein

From Ta Nea · () Greek

Translated from Greek, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • The European Commission has imposed a 3-euro duty on online purchases under 150 euros, targeting platforms like Temu and Shein.
  • The duty's payment depends on the importer of record, with platforms or sellers legally responsible, not consumers.
  • Retailers anticipate a slight drop in orders, viewing the duty as a measure to keep spending within Europe and Greece.

Consumers and the market are confused about the new 3-euro duty imposed by the European Commission on July 1 on online transactions under 150 euros. The measure specifically targets low-cost purchases from platforms like Temu and Shein.

Questions abound regarding who pays the fee, whether consumers are ultimately burdened, and how orders placed before the measure's implementation are handled. As the regulation enters its initial phase, the market awaits clarification on practical issues, according to sources speaking to Oikonomikos Tachydromos.

The decision rests with the seller, as in any case of duty imposition.

โ€” Stavros KafounisPresident of the Hellenic Confederation of Commerce and Entrepreneurship (ESEE), commenting on who is responsible for the new duty.

The payment of the 3-euro duty hinges on the delivery method and who is declared as the importer โ€“ the seller (platform) or the buyer. If the platform is designated as the importer, it pays the duty. If the buyer is named, they are responsible. However, an announcement from the Independent Authority for Public Revenue (AADE) clarifies that "in customs terminology, the party required to pay customs duty is called the declarant and becomes the debtor. The legislation for the application of the โ‚ฌ3 customs duty explicitly states that the debtor cannot be the consumer."

Legal responsibility for paying the 3-euro duty upon arrival in the EU falls on the platforms, sellers, or carriers who declare the goods to customs authorities. Therefore, it is not a charge collected from the buyer upon delivery. "The decision rests with the seller, as in any case of duty imposition," stated Stavros Kafounis, president of the Hellenic Confederation of Commerce and Entrepreneurship (ESEE), to Oikonomikos Tachydromos.

There will be some decline, and this is the purpose of this specific action. Every euro not spent on overseas platforms remains in Europe and Greece.

โ€” Stavros KafounisExplaining the expected impact of the new duty on online orders.

Both Shein and Temu have reacted to the new regime. Temu has set minimum order amounts of 10 euros for the first purchase and 20 euros for subsequent ones, informing customers about additional import fees. Specifically, for orders under 150 euros shipped from outside the EU, Temu will charge 3 euros per distinct item, plus applicable VAT. These fees appear separately at checkout and are not included in promotional offers. Shein, meanwhile, now highlights an "EU Warehouse" option and has modified terms for coupons and free shipping. For orders under 19 euros, shipping or locker pickup costs 4.90 euros, while orders over 19 euros receive free shipping, a change from the previous 39-euro threshold.

Retailers anticipate a "slight dip in orders," according to Makis Savvidis, vice president of the Hellenic Consumers' Association (ESAE). Kafounis echoed this sentiment, noting that "there will be some decline, and this is the purpose of this specific action. Every euro not spent on overseas platforms remains in Europe and Greece." The new 3-euro duty is a transitional measure, effective until June 30, 2028, aiming to ensure sellers in the European market adhere to the same rules. The two-year period is intended to allow platforms to adapt.

We expect a slight dip in orders.

โ€” Makis SavvidisVice president of the Hellenic Consumers' Association (ESAE), on the anticipated effect of the duty.
DistantNews Editorial

Originally published by Ta Nea in Greek. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.