Retailers welcome EU plan to add €2 fee to packages from outside the bloc
Irish retailers have welcomed a European Union proposal to add a €2 flat fee on all packages coming from outside the bloc.
Yesterday EU trade chief Maroš Šefčovič told the European Parliament that ecommerce platforms outside the EU would be expected to add the fee, which would go towards the costs customs officials face in processing such orders.
At the moment packages worth €150 or less that are imported into the EU directly by consumers are exempt from customs charges.
Last year 4.6 billion of these kinds of packages came into the bloc – with more than 90% originating in China.
“It’s certainly welcome and it’s a move in the right direction,” said Jean McCabe, CEO of Retail Excellence Ireland.
“I think it certainly will help for those cheap, disposible items coming into the Irish market – and anything that creates a more level playing field for our retailers is welcome,” she said.
Ms McCabe said it remained to be seen whether much of the consumer spend currently going towards China would be redirected to Irish retailers, however it was important that steps were taken to try to change behaviour.
“It’s those disposible, discretionary spends that we might see in store that aren’t happening now – they’re happening online instead,” she said. “It’s a pause for thought if you’re buying a €10 item and all of a sudden it’s going to be €12.
“It’s not going to change the landscape for retailers but it’s definitely moving in the right direction.”
A separate-but-related issue that retailers here are facing relates to the Waste Electrical and Electronic Equipment (WEEE) scheme – which obliges retailers to add a fee to electronic goods, and offer free recycling of older items.
However some non-EU retailers that sell products in Ireland are not participating in the scheme – meaning they can offer lower prices and avoid the burden of handling old goods.
“What we’re seeing is that distant sellers, selling white goods into Ireland, aren’t complying with the WEEE directive,” she said. “They’re able to sell into Ireland and get to ignore the directive, while Irish retailers have actually been a key part in that whole circular economy,” she said.
“That’s another example of how the online space has been a challenge. Irish retailers just want a competitive landscape – they just want to be able to compete,” she added.
The summer is an important trading period for retailers and Ms McCabe said the mood in the sector was upbeat at the moment – though she also said that costs continue to be an issue for businesses.
“The cost of doing business is still the biggest challenge for Irish retail,” she said. “There’s a lot of busy fools out there – the margins have gotten tighter and tighter and tigher”.
“For a lot it’s compliance and regulation – they just want to focus on being competitive and not focusing on being compliant as part of their business model,” she added.
Article Source – Retailers welcome EU plan to add €2 fee to packages from outside the bloc – RTE