Latvian shoppers on social media are actively discussing how these platforms have found a way to circumvent the system.
A discussion has emerged about how the clothing retailer Shein and the marketplace Temu are adapting to the upcoming changes. Shoppers have noticed that products now feature a special label reading “EU warehouse.”
Products labeled “European warehouse”
“Add items labeled ‘EU warehouse’ to your cart, and they’ll be shipped from Europe. This means nothing will change, and you won’t have to pay any extra fees,” the Latvian portal Bb.lv quotes one shopper as saying.
However, opinions are divided: while some shoppers are happy about the opportunity to bypass the system, others point out that this feature has so far only meant faster delivery, whereas on the Temu platform, items from local warehouses sometimes cost up to twice as much.
Many users complain that they still don’t see this option in their apps, even after updating the app.
Simplified method for calculating duties
As previously reported, a regulation will take effect on July 1 of this year that will repeal the current customs duty exemption for shipments valued at no more than 150 euros.
To ensure that the processing of such shipments continues to be quick, a simplified method for calculating duties will be introduced. A fixed customs duty of three euros will be applied to each commodity item.
The State Revenue Service of Latvia (VID) explains that an “item” refers to one or more goods in a shipment that share the same tariff classification, description, and origin.
This means that for different items of clothing, the customs duty will be applied to each item separately.
A dress, men’s pants, infant clothing, and a T-shirt are items in four different positions, and the duty for such a shipment will be 12 euros.
VAT and handling fee
The requirement to pay value-added tax (VAT) on all goods in shipments remains unchanged.
If an online store or platform sells goods under a special VAT regime that allows taxes to be collected at the time of purchase (IOSS regime), then both VAT and customs duties can be paid at the time of purchase.
In this case, the recipient will not have to deal with customs formalities, as the delivery provider will handle the customs clearance of the goods.
In all other cases, taxes will need to be paid when the shipment undergoes customs clearance.
In addition, starting November 1 of this year, the EU will apply a “Union handling fee” to all shipments from third countries—two euros per item.
The changes will apply to purchases of goods in any third country—China, the U.S., the U.K., Norway, Switzerland, and other non-EU member states.
