Caitríona Redmond: What you need to know about more charges on parcels from outside EU

New charges came into effect last July, and a proposed new handling fee is likely to be in place from November. 

Discussions have been taking place regarding the proposed new handling fee for parcels

Here we go again.

You may be surprised to learn that more charges are set to be introduced for small parcels coming into Ireland from outside the EU. 

Many consumers assumed the €3 per item charge introduced on July 1 was the only bad news in town.

There is an impending proposed €2 per parcel charge, which has been well flagged in advance by the EU, that must be implemented by November 1, 2026 at the latest. According to recent reports, the exact date is under negotiation.

We already know that the €3 charge, plus 23% VAT, applies per unique item in a parcel valued at under €150, including delivery. That cost is set to rise further.

At the moment, anybody who buys three identical t-shirts from the same retailer outside of the EU will incur an additional cost of €3.69 (including VAT) compared to the same items pre-July this year. Buy a pair of jeans, a t-shirt, and a jumper, though, and that cost rises to €11.07 for the same number of items.

Once this new parcel service charge is implemented, the customs cost of three t-shirts, or just one item on its own rises to €6.15, and the mixed clothing parcel would cost €13.53; of course, the parcel service charge would also be subject to VAT.

The question of when the new service charge will be implemented is actively under discussion. 

It’s fair to say that consumers will be rightly irked if it turns out they may be double charged for the same thing in future.

The EU says that the proposed €2 per parcel covers the cost of processing and accounting for the €3 charges. Yet An Post, which frequently has to collect these charges for customers whose online retailer didn’t charge the €3 per unique item at source, charges a €6.95 administration fee. 

There’s quite the element of bureaucratic optimism on the part of the EU at the moment, as they say that they are optimistic that most retailers will bake these charges into the checkout system at source. For consumers, that means paying the additional €2 service charge, along with the €3 per-item charge, not to mention VAT when they complete their order online.

They also say they will apply ‘penalties’ to retailers who fail to do so.

That’s cold comfort for people already struggling with the cost of living and the rising cost of ordering items online. I frequently receive messages from readers who were in the process of buying something online, realised how much more expensive it would be to order from outside the EU, and who didn’t complete their purchases.

Equally, a purchase that doesn’t have those new charges applied at the checkout is instantly more attractive, especially to impulsive buyers. When the delivery arrives, with a service charge on top of the new service charges, it makes it very difficult to justify the purchase.

Remember, even items sold via a “dot ie” website may still be shipped from outside the EU, and the UK is included in that category. Sometimes orders may arrive in separate parcels, though, so that new €2 service charge may be multiplied depending on how many deliveries you receive.

Many platforms are being beyond transparent, and you can see the charges in the online checkout process. Gold stars go to big online retailers such as Amazon, Shein and Temu.

If you’re ever unsure of where your parcel is being shipped from, pause before checking out the shopping basket. Navigate to the footer of the website and look for the returns policy. Generally, you can find the shipping location there, as most returns go back to the source. If the return location is outside the EU, but you don't see a customs charge at checkout, be prepared to pay the higher charge on delivery.

What about refunds?

The Revenue Commissioners say customers can receive a refund only if an item was faulty. They won't give refunds if an item doesn’t fit or is returned for another size. Where a replacement size is ordered, the customer will have to pay the new customs charge, and potentially the parcel service charge again.

On a final note, if you think that the €6.95 service charge for customs processing is excessive, spare a thought for a reader who contacted me last week. They frequently receive ARC (advance reader copy) books by post from the UK for review. Although they don't pay for the books, customs charges are still due on delivery under the new rules because the books have value.

Our Irish Examiner reader recently received a courier delivery notice and a request for the €3.69 customs charge. The handling fee, however, was a whopping €18.45 for one book. The review copy, which used to be delivered for free, now costs them €22.14 to receive, which in many cases would be higher than the value of the book sold brand new in the shop.

I winced at that total. I’m sure the reader will reconsider how they handle these complimentary copies in the future, and ask the shipper to cover customs instead. A cautionary tale.

REDMOND RECOMMENDS

I think most consumers accept that this year's harvest will be poorer in Ireland, the UK, and across Europe than in previous years. It’s challenging to marry the sunny halcyon days of this summer with impending food price increases. The ECB has already warned that food prices will affect inflation in the autumn and winter.

The good news is that prices haven’t risen significantly yet. This means you can slowly stock up on dried goods and staples in the weeks ahead by adding another bag of rice or pasta to your trolley each week. That way, when the fresh food prices start going up, you will have some wiggle room in your kitchen stores.