Soon – a new tax on shipments from China

Lithuania is set to introduce a new tax on e-commerce shipments from China, aiming to address the pricing advantages enjoyed by third-country platforms. Starting soon, a fixed fee of 3 euros will be applied to each product category within low-value shipments.

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If you order three pairs of pants, the customs duty will be 3 euros. However, if you order pants, a grass trimmer, and a soup ladle, the customs duty will be 9 euros, as these goods belong to three different categories.

This new duty targets goods purchased online, specifically for shipments that were previously exempt from customs duties due to their low value. For example, ordering three pairs of pants from the same category would incur a single 3-euro fee. However, if a shipment contains pants, a grass trimmer, and a soup ladle, each belonging to a different category, the total fee would be 9 euros.

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If a shipment worth 6 euros contains two types of goods, the duty would be equal to the shipment's value, i.e., 100% (3 euros x 2 – ed.). And if one shipment consists of two types of goods, whose total value is 150 euros, the duty would be only 4% of the value.

According to Sven Kukemelkas, commercial director at "Omniva," the new regulation could increase the value of a single shipment. Currently, the average value of goods in one shipment is between 5 to 6 euros. If a 6-euro shipment contains two types of goods, the 3-euro duty per category would effectively double the shipment's value, representing a 100% increase. In contrast, a shipment valued at 150 euros with two product types would only see a 4% increase in duty.

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For the Lithuanian buyer, this will likely mean a slightly higher final price, and for local and EU sellers – fairer competition conditions.

Marius Butauskas, founder of the online store "Varle.lt," views the decision as a step toward fairer competition. He notes that while the 3-euro fee is relatively small, it may lead to slightly higher final prices for Lithuanian consumers. Some Chinese merchants already utilize warehouses within the EU, shipping goods through European logistics networks, which are subject to standard customs duties and VAT, thus bypassing this new fixed fee.

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In such cases, shipments to the EU can be transported as cargo of higher value, which are subject to regular customs duties and VAT, so the fixed 3-euro fee would not apply.