Starting November 1, European Union consumers buying goods from outside the bloc will face a new non-EU online shopping fee of €2 per distinct item, according to Revenue. This EU-wide charge applies regardless of the item’s value and adds to a €3 customs duty per item that took effect on July 1, driving up costs for platforms like Temu and Shein as reported by The Irish Times.
Revenue Explains the Rationale Behind the Union Handling Fee
Revenue stated that the non-refundable fee covers increased processing costs for customs authorities dealing with a massive surge in eCommerce. Low-value consignments—defined as packages valued under €150—jumped from 660 million in 2022 to 5.7 billion last year across the EU. These shipments now account for 97% of physical consignments entering the bloc but represent only 2% of total value. In Ireland, low-value consignments make up roughly 88% of total package volumes.
How Delivery Companies and Retailers Will Collect the Charges
Online retailers are legally responsible for collecting the new €2 fee at checkout, though they are expected to pass the cost directly to shoppers. If a merchant fails to charge the fee during the online transaction, delivery providers such as An Post and DHL will collect it upon delivery. An Post stated that delivery companies are still awaiting definitive guidance on whether the new fee applies per item or per consignment.
Breakdown of Customs Duty and Handling Fee Examples
Charges accumulate quickly based on the number of unique items inside a single package. For example, a €10 package containing a pen, a notebook, and a keyring from outside the EU holds three distinct items. Since July 1, the €3 customs duty applies to each unique item, totaling €9. Starting November 1, the additional €2 union handling fee per item adds €6, bringing total extra charges to €15 before VAT. Conversely, a package containing two identical pens counts as a single item, resulting in a €3 customs duty and a €2 handling fee.
Impact on Packages Exceeding the €150 Threshold
Packages valued above €150 are subject to standard customs duty rates instead of the flat €3 charge. For instance, a shipment containing a pair of jeans valued at €100 and runners valued at €150 incurs a 12% customs duty (€12) for the jeans and a 16.9% duty (€25.35) for the runners. Combined with the €4 union handling fee, total charges reach €41.35 plus VAT.
Hidden Non-EU Shipping Risks for Local Domains
Goods based in Ireland, Northern Ireland, or another EU member state at the time of purchase remain exempt from both customs duties and the union handling fee. However, Revenue cautions that some websites utilize local domains, such as a “.ie” extension, or display prices in euros while still shipping merchandise directly from non-EU countries.
Shipping Insight: An Post noted that about six billion packages valued under €150 entered EU states last year from outside the bloc, averaging roughly 16 million packages daily.
Frequently Asked Questions About the New EU Handling Fee
When does the new €2 union handling fee take effect?
The fee takes effect on November 1 for all goods purchased from outside the EU.
Does the fee apply to all purchases?
It applies to any online purchase shipped from a non-EU country to consumers in Ireland and other EU member states, regardless of the package value.
Who pays the new charge?
The online retailer is responsible for paying and typically passes the fee to the consumer at checkout, though delivery companies will collect it if unpaid.
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