Exporters urged to bundle shipments as workaround to EU e-commerce rules

THE Department of Trade and Industry (DTI) said exporters need to consider bundling their shipments to the European Union (EU) as a workaround to new duties and compliance requirements for electronic commerce (e-commerce) shipments.

“Philippine exporters are advised to assess the potential impact of these measures on their pricing structures, logistics arrangements, and customs compliance processes,” the DTI’s Export Marketing Bureau (EMB) said in a statement on Monday.

“Exporters may wish to review product bundling strategies to minimize the number of tariff classifications per parcel and explore the use of bulk shipments to EU-based fulfillment centers where commercially feasible.”

On March 26, the European Parliament and Council reached agreement on a comprehensive reform of the EU Customs Union.

“The reform introduces a centralized EU Customs Data Hub, a new EU Customs Authority (EUCA), stricter controls in e-commerce imports, and the removal of the 150-euro de minimis duty exemption,” the EMB said.

The removal of the de minimis duty exemption ends the duty-free entry of all low-value consignments (LVCs) entering the EU starting July 1.

“As a transitional measure from July 1, 2026, until July 1, 2028 (with potential extensions), a flat customs duty of 3 euros per tariff heading will be levied on consignments declared under the Import One-Stop Shop (IOSS) framework,” the EMB said.

Upon the deployment of the EU Customs Data Hub, this interim flat rate will be replaced by standard Common Customs Tariff rates, it added.

The EU Customs Data Hub will serve as a centralized, cloud-based digital infrastructure engineered to unify the fragmented customs systems currently managed across EU member states.

The platform is set to begin operations for e-commerce transactions in 2028. The transition to voluntary integration for broader commercial traders will run through 2032, becoming progressively mandatory for most economic operators by 2038.

The agreement also includes the establishment of the EU Customs Authority (EUCA), a centralized regulatory body responsible for EU-wide customs risk analysis, data processing coordination, and the overarching governance of the EU Customs Data Hub.

Also among the reforms are the Trust & Check Trader (T&CT) status, which will introduce an advanced tier of customs compliance above the legacy Authorized Economic Operator (AEO) framework, the EMB said.

Finally, e-commerce platforms and online marketplaces will be “deemed importers” and will assume legal responsibility for importing goods into the EU, reducing the burden on EU consumers, it noted.

“However, for Philippine exporters that sell directly to EU consumers through their own websites, it is the exporter (or its EU representative) that will be ‘deemed importers’ for purposes of EU,” the EMB said.

Philippine exporters must prepare for the expected increase in costs associated with direct low-value shipments to EU consumers, the EMB said.

In the first five months, Philippine goods exports to the EU rose 16.2% year on year to $4.5 billion. — Beatriz Marie D. Cruz