The EU’s latest extra customs fee adds to shipping costs and the overhead for VAT collection, making it unaffordable or impossible for smaller U.S. businesses to sell to EU customers.

62 points•alsetmusic•9 days ago•79 comments•

79 comments

t0mpr1c39 days ago
I used to manufacture specialized consumer electronics in Shenzhen and sell them worldwide through Etsy. When Britain left the EU I stopped shipping to the UK rather than deal with VAT. I eventually stopped shipping outside the US altogether because shipping and administrative costs ate all the profit. When tariffs on Chinese goods went over 100% in 2024 I packed it in altogether. Bye bye side gig. The demand is still there. Maybe in 10 years I'll pick it up again.
veeti9 days ago
These fees were sucessfully lobbied in the media as a "Temu tax", and even reputable state broadcasters continue to refer to it as a "junk fee". However, it applies indiscriminately to everything from a decades old vintage book purchased from the UK, or spare parts to restore electronics ordered from Japan.
graemep9 days ago
Its a barrier to competition (what people here like to call a moat) that favours big business and mainstream products over small business and niche products.
anewhnaccount29 days ago
Exactly. I live in Finland bought an educational English grammar for kids book for my son 2nd hand from a private seller for 4 euros with 4 euros shipping from the UK. The final cost after all fees was was around 25 euros. It's not just for junk it's for everything. It's an Amazon subsidy (should have used amazon.de).
account429 days ago
eBay? For some reason the customs fee they quote for shipments from the UK is ridiculously high - often over 10€ for a similarly priced item and not just the 3€ line item minimum plus change. It's ridiculous when UK->Germany shipments are often more than twice the price of US->Germany shipments.
gucci-on-fleek9 days ago
I volunteer with a small US-based non-profit publisher [0], and this all matches my experience. We publish black-and-white technical journals that are worth almost nothing, and our European subscribers have occasionally been charged 20€ per copy by their customs authorities [1].

We're now prepaying the duties, which seems to have solved that problem, but a few months ago our printer informed us that we will now have to pay this additional €3 fee per copy, plus some undisclosed additional markup charged by the shipping intermediary. But at least they'll handle everything for us without any paperwork, so this is just expensive rather than a bureaucratic nightmare.

But unfortunately this fee seems unavoidable for us—we only mail ~300 copies to Europe per issue, so having multiple printing locations is infeasible; I've checked with a few other printers and they all quoted me double what our current printer charges, so it would be way too expensive to print everything in Europe; and timeliness is important for a periodical, so people can't just order in bulk. So it seems like we'll probably just have to raise our subscription rates again to cover these fees.

[0]: https://tug.org/TUGboat/contents.html

[1]: https://news.ycombinator.com/item?id=48246014

jleyank9 days ago
Fwiw, non us businesses have the same problem trying to ship to the us. It’s how governments want to roll now and how they generate counter actions.
tetromino_9 days ago
The US idiocy was to whiplash de minimis regulations. The US gov't suddenly raised the de minimis threshold to $800; with the easily foreseeable effect that the country got flooded with crap from Temu; and then reacted by eliminating de minimis completely.

If they'd just kept the threshold at $200, all the chaos could have been avoided...

t0mpr1c39 days ago
To my mind, the increase from $200 to $800 was more of a pragmatic policy tweak than a change of course. It was a recognition that US customs had limited capacity to check the value of small packages.
account429 days ago
The EU also got rid of customs minimums and (at least in germany) has been letting delivery companies charge highway robbery fees to pay the couple of euros and cents for you at the border. The $3 per linie item that is on top of that mess.
thehappypm9 days ago
This is not a tariff issue, unbelievably, but one about reducing competition.

I’m not sure I’m following the argument here, because tariffs are all about protectionism, which is a form of reducing external competition

Arodex9 days ago
It is not a tariff issue because there are no tariffs.

The author says so, if you take the time to read the actual article:

>I say this isn’t a tariff issue, and it’s not—these are existing customs charges that were waived for these low-cost shipments.

It is US companies having to pay VAT just like EU companies (the author seems surprised EU member states have varying VAT rates, but it is the same across the US), and private shipment companies deciding to push administrative costs to the customers. And inflation and energy costs soaring, due to a certain (US) administration going all-in on AI and foreign wars (which also affect intra-EU shipping).

But guess what: it costs less to ship something between two neighbouring European countries than across the Atlantic ocean. That's still not a tariff.

gucci-on-fleek9 days ago
> It is US companies having to pay VAT just like EU companies

I volunteer with a small US-based non-profit, and we only mail really inexpensive items ($4.50 each). We've been prepaying the VAT for a few years now [0], but our printer still informed us that we need to pay this new €3 fee, on top of the VAT and shipping fees that we're already paying [1].

We have no problem at all with paying taxes (even 30% of $4.50 is still really cheap), but a fixed €3 fee per item is brutal on an item that we're selling for less than €4. And the typical methods to reduce the impact of this fee like shipping in bulk don't really work for us, because timeliness is important for a periodical and most people only want a single copy of each issue.

> and private shipment companies deciding to push administrative costs to the customers

Our printer was rather evasive when we asked about this, but as far as I can tell, the €3 fee is imposed by the government, and then the shipping intermediaries will charge some undisclosed additional amount on top of this fee.

[0]: https://news.ycombinator.com/item?id=48246014

[1]: https://news.ycombinator.com/item?id=49796808

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