Online shoppers who buy from outside the European Union will have to pay a fresh charge of €2 per item from November 1st, Revenue has confirmed.
The new Union Handling Fee is on top of a €3 charge per item that was imposed this summer.
The charges and fees are being imposed by the EU, but delivery companies will have a legal responsibility to collect them if the levies have not been paid during checkout on the online store.
The charge is intended to cover the increased costs incurred by customs authorities as a result of the huge growth of ecommerce over the last number of years and will apply to all goods, regardless of their value, once a seller ships them to Ireland from outside the EU.
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Revenue gave the example of a package valued at €10 containing a pen, notebook and keyring sent from outside the EU.
As the package comprises three different items, a customs duty charge of €9, comprising three lots of €3, has been applied since July, taking the total cost to €19. The EU handling fees – three lots of €2 – will add an extra €6 to the bill, bringing the total cost to €25.
But if the package contained two identical pens, they would be considered one item, so the package would be liable to a €3 duty charge and, from November 1st, an additional €2 EU handling fee.
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If the value of a package from outside the EU is greater than €150, then the customs duty that applies to the specific goods instead of the €3 customs duty charge will be due.
So a pair of jeans worth €100 and a pair of runners costing €150 sent in one package will attract duty of €37.35 in addition to €4 of EU handling fees.
Consumers will pay in one of two ways:
Some websites will be set up to collect the customs duty and EU handling fee at the point of sale. In this case, both charges will be shown to the consumer and the total price paid at the checkout will be the final price, with no extra charges on delivery.
Other websites may not collect these charges at checkout and the delivery company will be required to collect the money from the consumer.
There is no customs duty or EU handling fee if goods are based in Ireland, Northern Ireland or in another EU member state at the time they are ordered.
“It is important that online shoppers are aware of these changes, so that they understand the total cost of their online purchases before making a decision to buy,” Revenue’s Ray Ryan said. “We want to help people avoid unexpected costs either at checkout or when the goods are delivered to their doorstep.”
