EU Eliminates €150 Tax Exemption, Importers Adjust Supply Chains
With the EU abolishing the €150 tax exemption for low-value parcels, cross-border e-commerce importers face rising cost challenges. Logistics companies indicate that more businesses are shifting towards establishing regional warehouses within Europe to optimize logistics costs and improve delivery times in response to tariff changes.
What are the key facts?
- 1Abolished €150 tax exemption
- 2Cross-border e-commerce supply chain adjustments
- 3Increased demand for regional warehousing
What happened?
The EU has eliminated the €150 tax exemption for low-value parcels, putting pressure on cross-border e-commerce due to increased tariff costs. Logistics service provider U-Freight reports that many importers are adjusting their supply chain strategies by increasing local warehousing in Europe to reduce cross-border transportation costs and ensure supply chain efficiency.
What does this mean for cross-border sellers?
As EU tax policies tighten, the cost advantage of direct cross-border shipping diminishes. Sellers need to assess the necessity of establishing overseas warehouses in Europe to maintain competitiveness and service quality.