EU customs regulations - effect on the UG culture

Started by FreakAnimalFinland, Today at 09:45:14 AM

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FreakAnimalFinland

I suppose we have had here topic about various changes and their effects on physical underground. Waste regulation bill wasn't as much nuisance as one would think. USA tariffs, not good, but already pretty much working out.

I think the new customs reform is so radical, and so comprehensive, that it WILL have effect without doubt. So those who do not know:

 EU Customs Data Hub: A centralized digital platform replacing 27 national IT systems. Traders submit data once. Use of the hub becomes mandatory for e-commerce on July 1, 2028, and for all traders by March 1, 2034.

Major Changes for E-Commerce

Already active since summer:
 End of the €150 Duty Exemption: The low-value consignment exemption (de minimis rule) was abolished on July 1, 2026. A temporary flat-rate duty of €3 per item applies to online purchases under €150 until the Data Hub is fully live.

Next week fully active:
New Union Handling Fee: A handling fee on small parcels will be introduced by November 1, 2026, to cover customs supervision and processing costs.


Platform Liability: Non-EU online platforms and sellers are now legally treated as the "importer," making them directly responsible for customs formalities, data submission, and duty payments instead of the end consumer.

Strict Penalties: Non-compliance by e-commerce operators can result in fines up to 6% of the company's annual import value from the preceding year, loss of customs privileges, or platform access restrictions.

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Someone who sells stuff via e-commerce platform is treated as such. As a label who is located within EU, bureaucracy is a norm and we have kind of used to it. Reporting everything by the book, paying tax to destination state and so on. Now that this similar thing applies to "importers", which means webstore located outside EU too, I am quite sure a lot of folks will be asking why are we paying VAT or import fees to... germany? Italy? Finland? Can be legit questions why so, but if one isn't doing so, in future packages like that may not be taken into delivery by couriers (or post) or can be simply returned back if its not done correctly.

Will it be still possible to send small "gifts" from private person to another, do trades and stuff like that. Probably yes, but as for legit business "e-commerce site", I doubt you can be sending out only "gifts" without being noticed and get sanctions for it.

Not long ago, feeling was that the absurd prices will be putting end to international physical UG culture as we know it. I suppose "the end" may be exaggerating it, but certainly it has caused change. I would predict this new change will isolate continents quite heavily. If your label or store was focused on exports to other continent, without strong local support, there could be trouble. If "local support" keeps you going, might be nothing to worry about.
E-mail: fanimal +a+ cfprod,com
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Scream & Writhe

#1
While there would still be the extra data entry work required for shippers, the extras fees wouldn't be the end of the world if they were only applied per line item (i.e. 10 different CDs = only one fee, one time on "CD" as a whole). However, due to all of the PID requirements, it effectively renders each item its own line, so 10 different CDs become 10 line items and the fees are then charged 10 times. The extra fees can very quickly become exorbitant. (On the other hand, if there is only one desired item, the total additional fees come to a manageable 5eu additional cost.)

For packages valued over 150eu, and packages shipped between businesses, the extra duty fees and PID requirements do not apply. There is an additional 2eu fee per line item that still applies, but once over 150eu, with the other requirements dropped, items can again be grouped together. So 10 different CDs can again be just one line item, and therefore only one additional 2eu charge.

Over the 150eu limit it is close to business as usual, as per my understanding. Of course that eliminates the possibility for any low value declarations, but in theory one would still come out ahead on a high value order (i.e. true cost 300eu) being declared at 160eu, for example. Then VAT is only paid on 160eu, not 300eu.

In light of all this, I've decided to offer free shipping to Europe on orders of CA$250 (approx. 160eu) or higher. This doesn't have to be done all at once, and an order can be "built" over time until the threshold is reached. More details: https://screamandwrithe.com/european-shipping/

We are also in the early stages of this and it remains to be seen how everything looks in practice, and what customs authorities might decide if substantial backlog or other unforeseen issues arise. A similar thing happened with the US when the tariffs started coming down—some blanket measures were eventually adjusted, and other elements were put on pause until proper systems could be in place.
Primitive Isolation Tactics
Scream & Writhe distro and Absurd Exposition label
Montreal, QC
https://www.screamandwrithe.com