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AN IRISH SHOPPER put six small items in her online shopping basket. The items came to around €22, but when she reached the checkout, she was surprised to see the cost of her order had almost doubled to over €41 due to import charges.
These types of charges will have hit any orders worth €150 or less coming from outside the EU since 1 July, when new EU-wide customs charges took effect.
A €3 tax is now added to each unique item in these kinds of orders to crack down on orders from fast fashion retailers and improve security. However, customs compliance expert Brian Murphy believes online shoppers in Ireland are disproportionately impacted.
Speaking to The Journal, Murphy said our location means we have developed an e-commerce reliance on the UK.
Shipments to Ireland from the UK previously attracted no extra taxes, but the new charges are now imposed on orders shipped from any part of the UK except Northern Ireland.
Murphy said: “Being an island off an island on the periphery of Europe means that logistically speaking the routing and logistics costs can be higher for parcels getting into Ireland.”
“We have a small enough population base at five million, meaning there’s no real economies of scale for logistics or parcel operators bringing large amounts of parcels direct in from places like the US and China,” he added.
Because of this, Murphy said an “unusually high share of our e-commerce parcels” are dispatched from warehouses in the UK, rather than directly from China or the US.
Murphy said the impact of the new charges on Ireland is “non-intentional” and the changes have positive aims of improving safety and security and levelling the playing field for local retailers in Europe.
However, he said it does raise fears that, in comparison to countries in mainland Europe, online shoppers in Ireland may have less choice if retailers decide the logistics of shipping here is not worthwhile.
Murphy said another complication from the new charges which is impacting all EU countries is that some retailers have not organised data correctly for customs purposes.
This means items which are the same or very similar are being charged €3 each as if they were unique items, when they actually are not for tax purposes.
To avoid unexpected charges, Murphy advised online shoppers to check the shipping origin before buying.
“Try and filter for EU fulfilled listings, where the platform or the seller allows for that,” he said.
He also recommended keeping an eye on the parcel composition, particularly if buying a high volume of items, as the more unique items you buy, the more charges you will rack up.
Murphy said shoppers should also be aware that the new custom charge is non-refundable.
He also advised shoppers to ensure all fees are included at checkout, and check that the terms of delivery include local charges.
He said some shoppers find out after purchasing their order that they owe more money on delivery as not all custom charges have been paid. For example, if VAT or duties are not collected by the seller at checkout, An Post may charge a €6.95 administration fee.
Ireland’s consumer protection watchdog is also advising shoppers to know where you’re buying from and where products are shipping from to avoid being hit with unexpected charges.
“If it’s not clear where the trader is based and where your order is coming from, consider shopping somewhere else. A lack of basic information like this can also be a red flag for online scams,” a spokesperson for the Competition and Consumer Protection Commission (CCPC) told The Journal.
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