EU Duties Have Slowed the Flow of Small Parcels from China, but Not Stopped It
The EU duties on small parcels from China, introduced in July, have begun to change trade flows, but Temu and Shein continue to put pressure on the European market.
The duties introduced by the European Union in July on small packages from China have begun to affect trade flows, but Estonian merchants should not expect the pressure from Temu, Shein, and other Chinese online shops on the European market to disappear quickly, writes the industry portal Kaubanduse teemaveeb.
An avalanche of small parcels ordered from Chinese discounters has swept over Europe. According to the portal's observations, Temu and Shein products are filling not only large stores but also those of the "second tier."
How Sellers Circumvent the Duties
According to Kenneth Kopamäe, sellers on Temu and Shein can soften the impact of customs tariffs by using warehouses located in Europe. This scheme allows goods to be delivered within the union's territory without falling under the duties imposed on parcels shipped directly from China.
This means that the measures introduced in July are changing supply logistics, but they do not guarantee a drastic reduction in the volume of cheap Chinese goods on the European market.
Opportunities for Estonian Business
Alongside the risks, the industry portal also notes new opportunities for Estonian entrepreneurs. The European Union's free trade agreements with India, Australia, and other markets could open up alternative supply and sales channels for local companies.
Renting Instead of Buying
Against the backdrop of restructuring supply chains, the question of warehouse equipment remains relevant for trading companies. Purchasing loading equipment often means a large one-time investment for a business. A rental model, on the contrary, allows costs to be spread over a longer period and keeps funds available for core business and development.
Raido Karik, head of rental services at Forklift OÜ, which offers full-service rental of new electric forklifts, answers the publication's questions.
Original: kaubandus.ee
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