If you are Selling to the EU, and you use marketplaces, you might want to keep an eye out for changes at customs.
What’s the state of play now, for British sellers?
If you’re a British seller, and you operate on marketplaces, you might have heard about the Import One Stop Shop (IOSS) scheme.
Thanks to the IOSS scheme, handling UK VAT and customs duties for items sold into the EU is quite streamlined. Whether you’re using Royal Mail, DPD, or other services, the IOSS scheme makes things easier for both you and your buyers.
How Does IOSS Work?
Items Under €150: When you sell an item valued at €150 or less, the IOSS scheme allows your buyers to pay all necessary duties and fees upfront at the point of purchase. No surprise charges on delivery!
Items Over €150: For items over €150, you can either pre-pay the duties and fees, or the recipient will handle these charges upon delivery.
Using IOSS isn’t mandatory, but many marketplaces like eBay, Etsy, and Amazon are registered on behalf of their sellers. This means when you sell through these platforms, the IOSS number is provided for you, making the process seamless.
How to Handle Customs Forms – A Royal Example
If you’re using Royal Mail or other postal services, here’s a quick guide to ensure you’re compliant with EU customs:
Online Postage: When buying postage online, enter the IOSS number given by your marketplace. All necessary customs details will be automatically filled in during the booking process.
In-Branch Postage: Visit your local Post Office with your item. Inform the staff about the IOSS marketplace you’re using. If your marketplace isn’t listed, just provide the IOSS number.
Attach the IOSS Sticker: Don’t forget to attach the IOSS sticker near the address label. This helps customs identify that duties and fees have already been paid.
Big Changes on the Horizon: No More Customs Exemption?
Now, let’s talk about a significant change in the EU customs landscape. The German government is backing a proposal to end the customs exemption for packages valued up to €150. This move aims to level the playing field, especially against booming Asian marketplaces like AliExpress, Shein, and Temu, which currently benefit from this exemption.
Why the Change?
Asian Marketplaces have been thriving, all across the European Union. With a huge influx of parcels from Asia, the EU is looking to reorganize import regulations to ensure fair competition. The proposed changes are also about better controlling the quality of products entering the EU. Ensuring that all imports meet European standards is a priority.
What This Means for You
If you’re selling to the EU, keep an eye on these regulatory changes. Depending if and how the changes will be, you might need to adjust your pricing or logistics to account for the removal of the €150 exemption.
In turn, this might translate into implementing new shipping calculation modules, integrating with different logistics providers, etc. Our e-commerce consultation services might be a good port of call if you don’t have an in-house e-commerce manager that can help with this.
Selling to the EU might seem daunting, with growing red tape and diminishing returns. Yet, with the right tools and knowledge, you can navigate customs and discover that what were once obstacles are now barriers to access for your competitors. Just stay informed about the IOSS scheme and upcoming regulatory changes to ensure smooth sailing in your cross-border sales.
Happy selling!
https://www.postoffice.co.uk/mail/selling-to-the-eu
https://ecommercenews.eu/german-government-backs-ending-customs-exemption
