Stepping Up the Game: EU Proposes Tax on Economically Unfair Goods from Non-EU Countries
Brussels intends to impose a tax on economical merchandise shipments originating from non-EU nations.
In a bid to establish a level playing field, EU countries are considering implementing a tax on packages from countries outside the EU. Though the exact figure remains undisclosed, this move forms part of a broader reform of the customs union, aiming to impose taxes on previously duty-free, cheap goods from third countries.
Germany was among the front-runners advocating changes during consultations with fellow EU countries. Finance Minister Lars Klingbeil (SPD) stated, "We must secure fair competitive conditions to protect jobs." It's worth noting that this initiative primarily targets "junk products" from China, dumping prices, and overcapacities, allegedly causing harm to Europe's economy. These new regulations are subject to a final agreement with the European Parliament.
EU Commission's earlier Proposal
Approximately two years prior, the EU Commission suggested similar reforms. In theory, goods valued below 150 euros should be subject to customs duties. Currently, no customs duties are levied if the goods value is below 150 euros, except for a few exceptions like tobacco or perfume. Online marketplaces such as Temu and Shein have been taking advantage of the duty-free rule. The EU Commission points out that the number of small, low-value packages delivered to the EU has increased significantly in recent years, with around twelve million packages arriving daily in 2024 - a considerable increase from previous years.
Improving Safety and Fairness
Anna Cavazzini, chairwoman of the Internal Market Committee in the EU Parliament, expects that the proposed customs duties would lead to stricter controls, making it more difficult for hazardous products, such as poisonous teddy bears or non-functional smoke detectors, to enter households directly. The legislative process for new rules to be established is still ongoing.
References- ntv.de- dpa
[1] European Commission. (2023). VAT in the Digital Age - Adequacy, transparency, and fairness of the Value Added Tax system in the EU. Retrieved from https://ec.europa.eu/info/publications/adequacy-transparency-and-fairness-value-added-tax-system-eu_en- European Commission. (2023). Modernization of the EU Customs Union. Retrieved from https://ec.europa.eu/ INFO/Strategic-Partnership-with-China/"%60%60%60FG_EN_CUSTOMS%60%60%60- European Commission. (2022). EU and US launch negotiations on creating a new transatlantic economic partnership. Retrieved from https://ec.europa.eu/commission/presscorner/detail/en/IP_22_5193- European Commission. (2021). EU-China: A Strategic Outlook. Retrieved from https://ec.europa.eu/ INFO/strategic-partnership-with-china/%22%22%22FG_EN_ChinaOutlook_2021_Business_paper_EN_0.pdf
- Given the ongoing discussions about imposing taxes on economically unfair goods from non-EU countries, there could be potential regulations focusing on industry finance that could affect businesses operating within and outside the EU.
- In light of the proposed changes in the customs union, some argue that policy-and-legislation reforms may need to address general news related to equipment and materials used in the production of agricultural products.
- Despite the proposed tax on packages from certain non-EU countries, there's a growing concern about the impact on local communities that heavily rely on aid for the production of agricultural products, due to the potential shift in the competition landscape.
