We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Explainer: How do the new charges on imports from non-EU countries work?

Unique items will be charged €3, but no extra charge applies to multiples of the same product.

STARTING THIS WEEK, anyone ordering goods from outside Europe will face new charges.

As of Wednesday, 1 July, any online purchases, including clothes, electronics and makeup, will be liable to charges of up to €3 per item, unless they come from another European Union country.

The duties only apply to purchases made online, but do apply to orders placed before the rule came into effect if they arrive in Ireland after the rule goes into effect. Gifts sent through the post are not affected.

The changes to customs duties are part of an EU-wide shift. Before now, goods valued under €150 were exempt from these charges.

However, with the explosion of online shopping, in particular from Chinese outlets like Temu and Shein, this exemption was increasingly seen as a loophole by European leaders.

“This reform ensures fairness for all businesses operating within the EU market while keeping customs procedures simple for consumers,” EU trade security commissioner Maroš Šefčovič said in a statement.

“By introducing a small duty and stronger product traceability, we are closing loopholes that allowed unsafe and non-compliant goods to enter our market too easily.”

The EU commission also explained the change by saying that the exemption for goods worth less than €150 was “originally introduced to avoid disproportionate administrative burdens for customs authorities, businesses, and private individuals. However, due to the digitalisation of customs procedures, electronic data are nowadays available for all imported goods.”

However, utterances by EU organisations and officials suggest much of the motivation behind the new customs changes are to protect European retail outlets.

In online anti-EU groups, posts have described the new levy as a punishment on people trying to survive a cost of living crisis, or it compared with the immigration system which they say turns a blind eye to people entering the EU.

This new rules mean customers will be charged at €3 per “distinct” item being brought into the EU, and will include goods imported from Britain.

However, under the post-Brexit agreements, EU customs regulations can apply to Northern Ireland, which appears to also be implementing the €3 customs charge for goods coming from outside the EU, except the UK. 

The details of how the fee will work in Northern Ireland are considerably more complex and have been the subject of some controversy and remain unclear.

An explanation released by Revenue last week included an example of how the duty will apply to separate goods.

“A package from Asia contains a pen, a notebook and a key ring purchased online. As the package contains three distinct items, each will have a €3 Customs Duty charge, so there will be €9 Customs Duty, plus Value-Added Tax (VAT) due,” the explanation reads.

“If the package contained two identical pens, these are considered one item and there will be a €3 Customs Duty charge,” it continues.

The new duties may be charged at checkout on some websites. But for websites that do not collect the duty on payment, the delivery company will be required to collect the customs owed before the package can be delivered.

The Competition and Consumer Protection Commission cautioned people who receive messages asking them to pay duties to be mindful that they are not being scammed.

Revenue warns that the charge is non-refundable, meaning that you won’t get your money back if you return an item, though there is an exception for returning faulty goods.

They also warned that just because a website says it is Irish or European, or has an “.ie” domain, they may still ship their packages from outside the EU, in which case the customs duties will apply.

The Journal’s FactCheck is a signatory to the International Fact-Checking Network’s Code of Principles. You can read it here. For information on how FactCheck works, what the verdicts mean, and how you can take part, check out our Reader’s Guide here. You can read about the team of editors and reporters who work on the factchecks here.

Readers like you are keeping these stories free for everyone...
It is vital that we surface facts from noise. Articles like this one brings you clarity, transparency and balance so you can make well-informed decisions. We set up FactCheck in 2016 to proactively expose false or misleading information, but to continue to deliver on this mission we need your support. Over 5,000 readers like you support us. If you can, please consider setting up a monthly payment or making a once-off donation to keep news free to everyone.

Close
JournalTv
News in 60 seconds