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EU's €3 Parcel Tax Fails to Stem China's E-commerce Tide, Official Warns

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A senior EU customs official has warned that a planned €3 tax on small online parcels will not stop the flood of cheap Chinese goods entering the bloc. Belgium's top customs official, Kristian Vanderwaeren, stated the tax, set to begin in July, will likely have minimal impact on reducing low-value imports. 5.8 billion such parcels entered the EU last year, up four times from 2022, with nine out of ten originating from China. Vanderwaeren explained the price increase from the tax wouldn't deter consumers enough to significantly curb the influx. The tax aims to level the playing field with European-made goods but faces challenges in enforcement due to customs capacity limits. Officers at Belgium's Liège airport, processing 1.4 billion parcels annually, can only physically inspect less than 1% of shipments. Counterfeit goods and safety violations are found in nearly a third of checked items, highlighting the scale of the problem.

The tax's limited effect stems partly from a loophole allowing importers to avoid the €3 fee by submitting longer customs forms. This could redirect shipments into complex declarations that don't generate revenue, straining already overloaded systems. Vanderwaeren noted the US's similar move last year re-routed Chinese exports to Europe, partly due to political uncertainty in the US market. The EU's broader customs reform, due in 2028, aims to digitize processes and strengthen monitoring but won't address the core issue of overwhelming parcel volumes.

Belgium's Liège hub handles the largest share of low-value EU imports, processing 1.4 billion parcels last year. The warning underscores the difficulty authorities face in policing the surge in cross-border e-commerce, with current systems overwhelmed by the sheer volume of shipments.