Trade Department Suggests 'Bundle Shipments' Strategy for Exporters in Response to EU Rules
Due to the cost pressures from the EU's elimination of the low-value exemption policy, relevant trade departments have suggested that exporters reduce tariff expenses by bundling shipments. This strategy aims to lower the compliance and tax burden on individual packages through economies of scale in logistics.
What are the key facts?
- 1Suggested strategy: Bundle shipments
- 2Purpose: Avoid EU tariffs and compliance costs on small packages
- 3Background: EU implemented new e-commerce tax policy on July 1
What happened?
The Philippine Department of Trade and Industry recently advised exporters to assess the impact of the new EU regulations on their pricing structures. Under the new e-commerce taxation policy implemented by the EU on July 1, a €3 tariff applies to each package, increasing compliance requirements. As a result, the trade department encourages exporters to consider bundling shipments to lower overall logistics costs. This strategy aims to maintain competitiveness in the European market and ensure exporting firms can adapt to new market rules.
What does this mean for cross-border sellers?
Sellers can leverage the bundling strategy to optimize logistics operations and reduce tariff expenses on individual packages. However, when adjusting logistics models, they need to balance delivery timeliness and flexibility to avoid impacting customer experience.