Below you will find the answers from our panel of experts.
Q: What does it mean a parcel less than 150 EUR? Does it mean the total value of a Parcel? Or the value of each category (HS code) items in a parcel?
A: The €150 de minimis threshold refers to the total parcel value – i.e., the combined value of all items/commodities packed within that specific parcel.
Q: Can e-platforms pay the 3EUR by their IOSS account?
A: IOSS account is only for VAT settlement, not for the 3EUR flat duty settlement.
Q: Adding the 3EUR to the selling price, this would impact the Duty and Taxes and could potentially exceed the EUR 150 threshold. Do you recommend having this as an additional fees? Current platforms are not updated with the 3 EUR fees, the retailer will incur this cost in most cases?
A: Adding a flat €3 duty into every SKU could inflate the duty amount from the buyer’s perspective. For example, if a buyer purchases two pieces of the same HS code in the same parcel, they would effectively be charged €6 instead of €3, which is not accurate. It would be more precise to charge the duty separately, rather than embedding it into each selling price. This could be done at checkout. We have this capability with SendNow by Asendia at checkout calculated by each individual HS code rather than item.
Q: Can an e-tailer link SendNow into their order processing system?
Yes, for low international volume individual or marketplace sellers, SendNow by Asendia is set up to make customs easy and part of your order process. HS codes are easily identified and customs are calculated based on your shipping country. DDP is offered in all key markets to allow customs pre-payment. DDU is also available.
Q: If the 3EUR fee is based on per HS code, how does the package bundling reduce this cost?
A: If you have one consignee on the box, then this is a strategy to consolidate multiple items above the 150 EUR threshold. It also allows to bundle multiple items of the same HS code. However, it isn't clear yet if one consignee bundling will be accepted as part of the new regulations. This part of the regulations could be reviewed and updated later this year but seems likely that grouping won't be accepted.
Q: As a consequence, should we prioritize DDP over postal DDU?
If you would like a simplified and transparent duties process, then we strongly recommend DDP for a better customer experience. However, if postal DDU is still something you wish to have, Asendia does have a unique solution called ADP where the customs payment request to the shopper is triggered at origin. This removes the 'doorstep surprise' for shoppers and reduces refused deliveries within Europe.
Q: What are the charges for DDP arrangement from Asendia?
Q: Does this cover all items, or are magazine subscriptions included [if a large letter size]?
Officially, we believe so, but in practice, we don't know yet. It's unclear if some or all EU countries will indeed treat magazines with a selling / subscription price as ordinary merchandise. When the new regulations were introduced in the EU in July 2021, only Hungary made a real difficulties with magazines.
Q: What about b2c non-sale / gifts?
This no longer exists. All items are treated and handled the same way. But it's an evolving situation and updates may come later this year.
Q: Will the India–EU FTA eliminate the new €3 customs handling fee or EU VAT for eCommerce sellers.
It depends on the customs declaration the import channel will use. So if the declaration is using standard VAT regime H1 declaration, then preferential rates FTA still apply - However, you need most stronger evidence to prove country of origin.
With H7 however, you have a flat fee. So it doesn't matter if you have preferential rates and you can prove the origin for goods coming from the country with which you have an FTA.
This process is becoming increasingly difficult, and proof or origin will become a major part of using a FTA. Enquiries since 1st July have already shown this.
Q: Once the data hub in EU is in place, will the 3 euros be done away with? Could this mean some products may even be cheaper to send because some products have little or no duties in Europe from other countries.
The 3 EUR duty will go away the day the data hub is introduced (1st July 2028). We will then see the normal CCTS (Common Customs Tariff Specification) take place which should be more simplified.