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DHL, FedEx, UPS Warn EU on New Duty Rules

DHL, FedEx, and UPS warn EU about supply chain risks from new duty rules on low-value packages, recommending gradual implementation.

Evelyn Lee
ByEvelyn Lee- Senior Editor
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DHL, FedEx (NYSE:FDX), and UPS (NYSE:UPS) have called on European Union finance ministers to gradually implement new duty regulations on low-value packages, citing concerns about potential supply chain disruptions and the availability of certain medical supplies.

The regulations are designed to address the influx of inexpensive Chinese e-commerce imports from online retailers including Shein and Temu.

The three logistics companies, in a letter dated Friday and reviewed by Reuters, recommended that the EU move forward with a €3 flat-rate duty starting July 1, while postponing more complicated and unresolved aspects until they become legally certain and operationally feasible.

The companies stated that the new data requirements and other modifications mandated by the regulations have created a level of complexity that cannot reasonably be implemented by the July 1 deadline.

Mike Parra, CEO of DHL Express Europe, Wouter Roels, President of FedEx Europe, and Daniel Carrera, President of UPS EMEA, wrote in the letter that they anticipate a real risk of shipments being delayed at EU borders without a stable and workable legal framework.

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DHL, FedEx, UPS Warn EU on New Duty Rules | Bond.az