New handling fee for online shoppers on non-EU goods

Revenue has confirmed that from 1 November any goods bought from outside the EU will be subject to a new "union handling fee" of €2 per distinct item.

It will apply to any goods - regardless of value - bought online from non-EU countries and shipped to consumers in Ireland and other EU member states.

The EU-wide fee is separate from, and in addition to, the €3 customs duty per item that has applied since 1 July.

Revenue said the new charge, which will not be refundable, is intended to cover increased costs incurred by customs authorities as a result of the huge growth of eCommerce over the last number of years.

According to Revenue, the number of low-value consignments (LVCs - valued at less than €150) imported into the EU has risen dramatically, from 660 million in 2022 to 5.7 billion last year.

It said LVCs now represent 97% of all physical consignments into the EU, but only 2% of overall value. In Ireland, LVCs now account for approximately 88% of total consignments.

The company consumers buy from will be responsible for paying the new €2 fee, however, they are likely to pass this charge on to the consumer during the online checkout.

If the fee is not charged at the online checkout, then the company delivering the items (e.g. An Post, DHL, etc.) will charge an additional fee to collect it.

Example of how new charges will be applied

For example, a package valued at €10 containing a pen, notebook, and key ring purchased online and sent from outside the EU contains three different items.

Since 1 July, the €3 customs duty charge applies to each unique item, resulting in customs duty of €9, plus VAT. From 1 November, an additional 'union handling fee' of €2 per item will also apply, adding €6. The total additional charges will therefore be €15, plus VAT.

If the package instead contained two identical pens, these are considered one item, so this package is liable to a €3 customs duty charge plus VAT, and from 1 November an additional €2 Union Handling Fee, so €5, plus VAT in total.

However, if the value of a package is greater than €150, then the customs duty that applies to the specific goodsm instead of the €3 Customs Duty chargem will be due.

For example, with a package containing a pair of jeans (valued at €100) and a pair of runners (valued at €150), the jeans will attract customs duty of €12 (12%) and the runners €25.35 (16.9%) plus VAT - in addition to the €4 Union Handling Fee, so charges of €41.35 plus VAT in total.

There is no customs duty or 'union handling fee' where goods are based in Ireland, Northern Ireland or in another EU member state at the time the goods are ordered.

However, some websites may appear as if the business is EU-based (for example, by using a ".ie" domain or by showing prices in euro) even though the goods may still be shipped from a non-EU country.