The presentation-to-customs charges applied by EU #postaloperators are changing cross-border ecommerce logistics

𝗡𝗲𝘄 𝗰𝘂𝘀𝘁𝗼𝗺𝘀 𝗳𝗲𝗲 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗮𝗽𝗽𝗹𝗶𝗲𝗱 𝗯𝘆 𝗘𝗨 𝗱𝗲𝘀𝗶𝗴𝗻𝗮𝘁𝗲𝗱 𝗼𝗽𝗲𝗿𝗮𝘁𝗼𝗿𝘀 (𝗗𝗢) 𝗳𝗼𝗿 𝗶𝗺𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗽𝗼𝘀𝘁𝗮𝗹 𝘀𝗵𝗶𝗽𝗺𝗲𝗻𝘁𝘀 𝗶𝗻𝘁𝗼 𝘁𝗵𝗲 𝗘𝗨, 𝗯𝗼𝘁𝗵 𝘄𝗶𝘁𝗵 𝗮𝗻𝗱 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝘁𝗵𝗲 𝗜𝗢𝗦𝗦 𝘀𝗰𝗵𝗲𝗺𝗲

Prior to 1 July 2021, almost all #postalshipments were valued at below EUR 22. No customs or #importduties were due on entering the EU.

On 1 July 2021 the EU #VATEcommercepackage came into force, with import duties now charged for each consignment, whatever its value. The new IOSS scheme simplifies #customsclearance.

Although, in principle, this works very well for the commercial sector, there are unexpected effects on the EU postal market.

𝗦𝗲𝘃𝗲𝗿𝗮𝗹 𝗘𝗨 𝗽𝗼𝘀𝘁𝗮𝗹 𝗼𝗽𝗲𝗿𝗮𝘁𝗼𝗿𝘀 (𝗗𝗢) 𝗮𝗿𝗲 𝗰𝗵𝗮𝗿𝗴𝗶𝗻𝗴 𝗽𝗿𝗲𝘀𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝘁𝗼 𝗰𝘂𝘀𝘁𝗼𝗺𝘀 𝗳𝗲𝗲𝘀 𝗲𝘃𝗲𝗻 𝘄𝗵𝗲𝗻 𝗜𝗢𝗦𝗦 𝗶𝘀 𝗮𝗽𝗽𝗹𝗶𝗲𝗱. 𝗜𝗺𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗶𝗻𝘁𝗼 𝘁𝗵𝗲 𝗘𝗨 𝗵𝗮𝘀 𝗯𝗲𝗰𝗼𝗺𝗲 𝗮 𝗰𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲 𝗱𝘂𝗲 𝘁𝗼 𝘁𝗵𝗲 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁 𝗳𝗲𝗲 𝗺𝗼𝗱𝗲𝗹𝘀 𝗮𝗽𝗽𝗹𝗶𝗲𝗱 𝗯𝘆 𝗘𝗨-𝗠𝗦.

·𝗦𝗵𝗶𝗽𝗺𝗲𝗻𝘁𝘀 𝗼𝘂𝘁𝘀𝗶𝗱𝗲 𝘁𝗵𝗲 𝗜𝗢𝗦𝗦 𝘀𝗰𝗵𝗲𝗺𝗲: When a #supplier (any electronic interface) uses DAP and does not apply IOSS, the DO is obliged to collect import duties for #LVC below a value of EUR 150 from the recipient. Charges for collecting these duties already applied prior to 1 July 2021 but affected very few #shipments at that time. Currently, the presentation-to-customs charges vary from EUR 1.62 EUR to over EUR 31.

·𝗦𝗵𝗶𝗽𝗺𝗲𝗻𝘁𝘀 𝗮𝗽𝗽𝗹𝘆𝗶𝗻𝗴 𝘁𝗵𝗲 𝗜𝗢𝗦𝗦 𝘀𝗰𝗵𝗲𝗺𝗲: There is an added layer of complexity when the shipper applies IOSS and uses a DO for #delivery into the EU (UPU postal channel): the import duties (i.e., the VAT applicable in the EU-MS of consumption) will be collected at checkout, so that LVCs under the IOSS scheme are exempt from import duties at the EU border.

However, while
a. some DOs collect no presentation-to-customs charges for the digital presentation of the pre-lodged declarations to customs (i.e., the transmission of the Super Reduced Dataset),
b. other DOs charge up to EUR 8.30 for this service.

As a result, the EU has unwittingly become a highly inhomogeneous market in which many different fee models now apply, creating additional costs in various EU Member States.
The map below shows which charges are currently collected when sending postal items to the EU.

𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝗼𝗻 𝘁𝗵𝗲 𝗱𝗮𝘁𝗮 𝗶𝗻 𝘁𝗵𝗲 𝗺𝗮𝗽

This data has been taken from the UPU Parcel Post Compendium (PPC) in which DOs publish the relevant and legally required information on charges to be collected.

#logistics #data #digital #ecommerce #update #internalmarket #upu #CLS #EU #IOSS #PPC