Chinese online commerce companies such as Shein and Temu pass through neighboring countries to avoid taxes levied on small packages in France

From the 1st of this month, the French government will impose a tax of 2 euros per product in the name of administrative processing fees on all small parcels coming from outside France (non-EU member states).

The move was aimed primarily at Chinese companies, in a move aimed at curbing excessive consumption of low-cost fast fashion, protecting the environment and protecting local retailers.

According to Radio France Anpo, Chinese companies quickly found countermeasures.

When reporters bought goods on the Temu site and inquired about taxes at the customer center, Temu responded, “There are no additional costs, so you can shop with confidence.”

As a result of tracking the delivery route, the small parcel ordered from Paris was transported to France by land via Liege Airport in Belgium.

The scenery of French and Belgian airports has changed due to the “trick” of Chinese companies.

“It’s a tsunami of goods,” said Liege Airport Customs General Manager. “There are 3.4 million cases a day, and it’s a huge deal. It’s virtually impossible for customs to control this.”

On the other hand, the cargo area of France’s Luasi Charles de Gaulle Airport is almost completely stopped.

The number of customs declarations related to e-commerce plunged 92 percent in just three days after the policy was implemented, and some warehouses were completely empty. This has never happened in years.

“Since March 1, we have seen literally work and processed packages being moved to other places,” said Fabien Milain, general secretary of the airport customs union. “The warehouse is empty, and all the company employees who worked here have left.”

In addition to Belgium, Chinese companies use France’s neighboring countries such as Luxembourg and the Netherlands as transit points.

Small parcel taxes are expected to expand to other European countries within this year.

EU finance ministers agreed in December last year to charge a fee of 3 euros each for low-cost packages under 150 euros from July.

SALLY LEE

US ASIA JOURNAL

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