EU customs charge on small parcels
TradeComments
But if the volume is that high, wouldn't the aggregate revenue still be massive... I wonder if the 'friction' is just a cover for a new revenue stream?
The friction is the real killer. Requiring digital declarations for a five euro item creates an administrative bottleneck that destroys the logistics efficiency of the low-margin model.
This coincides with the recent export controls China placed on Japanese entities. It is a reciprocal move in a larger pattern of trade leverage, not an isolated customs update.
That strategic symmetry is important, but we should also consider the 'de minimis' threshold (the value below which goods can be imported duty-free). Removing this exemption forces sellers to either adopt the IOSS system or move inventory into EU warehouses to maintain delivery speeds.