E-commerce air cargo volumes into the European Union (EU) may be impacted by the end of the de minimis exemption and the introduction of higher costs for shippers.
As of 1 July, the EU introduced a temporary €3 customs duty on low-value parcels imported from outside the EU, mainly through e-commerce.
EU member states agreed in December to introduce the customs duty charge per item on parcels valued below €150. This is intended to bridge the gap until the EU Customs Data Hub is launched in 2028.
This customs duty includes a wide range of products commonly bought online, such as clothing, toys, electronics, and other consumer goods.
The new duty will apply per item, based on tariff classification and not quantity, said the European Commission. The seller or importer will be responsible for declaring and paying the duty as part of the customs process.
It may become clear in the following weeks and months what impact the end of the exemption will have on e-commerce shipment volumes.
The US government’s decision in April last year to end the de minimis exemption for imports from China valued at less than $800 resulted in increased costs and a drop in demand on China-US routes. The policy was extended to apply to all countries of origin from the end of August last year.
China’s e-commerce export volumes shifted from China-US to China-Europe, although volumes to the US have now largely recovered.
“Every day, millions of low-value parcels enter the EU,” said the EC. “Many contain products that do not meet EU safety standards or are undervalued or falsely declared to avoid customs duties.
“At the same time, the current customs duty exemption gives non-EU sellers an unfair advantage over businesses that manufacture or sell products in the EU.”
The EC added: “The new measure will help create fairer competition for EU businesses, better protect consumers from unsafe products, tackle customs fraud, and address environmental concerns over mass shipping.
“The EU is working to modernise customs procedures to strengthen the single market and ensure that all businesses selling into the EU compete on equal terms while meeting the EU’s safety and compliance standards.”
Airfreight rate analytics platform Xeneta predicted slower e-commerce growth this year due to increased shipper costs, tax reporting requirements in China and declining consumer purchasing power.
But despite the global crackdown on import rules, IATA has previously said it was confident that demand for e-commerce will remain firm and the vertical will continue to drive air cargo volumes.
The UK is also exploring the removal of its own exemption for e-commerce parcels, although this is not expected until 2029.
