In response to the huge pressure put on EU customs by cross-border e-commerce traders, the EU is pursuing its largest customs reform since 1968.

On February 22, the Internal Market Committee of the EU adopted a draft position on the reform of EU customs law. Shanghai customs law expert Zhu Qinghai said that this could basically be considered a comprehensive revision and would form a number of new mechanisms.

According to the proposal, the EU will amend four legislation, including the EU Customs Code, the EU Customs Regulation, the EU Customs Exemption Regulation and the Directive on the Common System of Value Added Tax.

According to the European Commission, this is the most ambitious comprehensive reform proposal since the establishment of the Customs Union in 1968.

It is noteworthy that the reform has made significant adjustments to the cross-border e-commerce tax.On the one hand, the tariff exemption policy for goods under €150 will be lifted and five additional tariff rates for distance sales will be added.For example, the current tariff-free 100 euro bag will face a 12% high tax rate.

On the other hand, cross-border e-commerce platforms will be regarded as "deemed importers," not only required to pay value-added tax and tariffs but also obligated to fulfill customs declaration duties, including supply chain compliance information, significantly increasing compliance pressure.

Some people in the industry believe that once implemented, the tax burden of Chinese cross-border e-commerce companies will increase significantly, or affect their willingness to export to Europe.

In this regard, Zhu Jima suggested that Chinese companies participate in the EU legislative process in a timely manner and express interest claims.She said that by leveraging local regulations, Chinas industry can better defend its rights and interests and gain a longer transition period.

It is that the European Parliament may pass the reform proposal before the next June elections, analysts pointed out that the coming months will be an important window period for China to express its views.

Overall, the reform is aimed atining import and export order and curbing trade fraud, but profits are difficult to quantify.In the future, cross-border e-commerce companies need to pay attention to trade compliance and look more rationally at the EU market.