APAC exporters brace for stricter EU import rules

MANILA, Philippines – Businesses across Asia-Pacific, including the Philippines, are racing to comply with stricter EU customs rules taking effect next month, with many still unprepared.

A survey of over 500 firms in 12 markets found that 41 percent remain in the early stages of preparation or are completely unprepared for the EU’s July 1 removal of its €150 de minimis duty exemption.

READ: EU-ABC urges Philippines to spearhead battle vs illicit trade

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The new rules will impose a €3 customs declaration fee per line and require additional product data for low-value imports.

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While awareness of the changes was high, only 59 percent of respondents said they were fully or mostly prepared, according to a survey by Federal Express Corporation.

Among those not yet ready, 27 percent cited unclear compliance guidance, 24 percent lacked expertise on EU customs rules, and 22 percent struggled to keep up with evolving requirements.

The survey also found the policy shift is already shaping business decisions.

About 45 percent of respondents said EU customs regulations have become a constraint on growth, citing higher landed costs and increased compliance burdens.

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More than one-third, or 36 percent, said they have already adjusted or plan to adjust pricing for European customers to account for the additional costs.

Meanwhile, half of the surveyed firms said the new rules are affecting their trade corridor strategies, thus prompting a reassessment of market priorities.

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Among companies looking to diversify beyond Europe, 28 percent identified intra-Asia trade as their preferred alternative growth market, while 23 percent pointed to the United States.

READ: Philippines seen as key player in ASEAN efforts against illicit trade

“As global trade continues to evolve, businesses across Asia Pacific are navigating increasing regulatory complexity while pursuing growth across key markets,” said Salil Chari, president for Asia-Pacific at FedEx.

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The study, based on feedback gathered during FedEx customer webinars in April and May, covered firms from the Philippines, Singapore, Malaysia, Australia, New Zealand, Hong Kong, Indonesia, Thailand, Japan, Taiwan, South Korea and China. /pai INQ