In the fall a new rate arrives

On July 1, the new tax that the European Union imposed on shipments from other countries. The measure, popularly known as the ‘Shein rate’mainly affects small packages sent from China, which are the main business of stores such as Aliexpress, Shein and Temu. In addition to charging us a fixed fee of 3 euros extra for each product category that we buy, starting in the fall they will also charge a processing fee.

This is how the ‘Shein rate’ works. Europe is already applying a tariff of 3 euros to all small packages coming from outside the Union, as long as their value does not exceed 150 euros. The problem is that those 3 euros are not per package, but per type of product. If, for example, we buy four t-shirts, we will be charged only 3 euros, but if we buy a t-shirt, a cat toy and some shoes, it will be an extra 9 euros, a tariff for each product.

The colleagues from Xataka Móvil have done a simulation order with several varied products. The total order amounted to 14.91 euros, but when we went to pay the price was 33.05 euros. There are 18.14 euros in taxes, more than the value of the order itself.

There is more. Placing an order in these stores is no longer the bargain it used to be, but the European Union has also prepared a new processing fee that will begin to apply this fall. On the page where this regulation is detailed, The European Commission indicates that in the future a customs processing fee will be applied, the amount and exact date of entry into force of which has yet to be determined. We won’t have to wait long to find out since they are talking about its application this fall.

The ‘de minimis’ doctrine. It is a Latin term used in the United States that indicated that all packages under a certain value did not have to pay taxes. The US already eliminated this exemption in February of last year and months later, Europe followed in their footsteps. This mechanism has allowed online platforms such as Shein, Temu, Aliexpress and also Amazon to take advantage of the opportunity to offer very competitive prices that would otherwise have been impossible. According to the Commission, this is “an obsolete tariff exemption that is no longer justified and that, in practice, gives a competitive advantage to certain business models.” The EU expects to earn about 1 billion euros a year with this tariff.

Tricks so that buying is not so expensive. We can continue buying packages from China, but if we really want to save, there is no more putting everything in the basket without looking at anything other than the price. You have to change the logic when filling the cart, grouping purchases by item type and looking for items that are shipped from Spain whenever possible. And of course, before placing an order to the other part of the world, consider whether you can get it at a local store at a competitive price.

Image | Kampus Production

In Xataka | €10 order, €30 tariffs: the EU has just approved the mother of tariffs for Aliexpress, Shein and Temu