Bangladesh Eyes Garment Export Gains as EU Raises Costs of Cheap Online Imports
New European Union charges are making ultra-cheap goods shipped directly to shoppers more expensive. With Chinese low-value e-commerce air shipments to the EU falling sharply, Bangladesh’s garment exporters could gain an opening but extra orders are not guaranteed.
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In a Nutshell
- Since July 1, the EU has charged a temporary €3 customs duty per product category in small online orders worth up to €150. An additional €2 handling fee took effect on November 1. These charges apply to direct-to-consumer imports from outside the EU, not just China.taxation-customs.
- The charges have a bigger impact on cheaper products. For example, adding the €3 duty to a €5 top raises its price to €8 if the seller passes the full cost to the customer even before the handling fee.
- Bangladesh mainly exports garments in bulk to brands and retailers, rather than sending individual orders directly to shoppers. Those ordinary business-to-business shipments are not covered by the new handling fee, leaving Bangladesh less directly exposed to these charges
Context
The EU previously allowed goods worth up to €150 to enter without customs duty. Ending that exemption makes the business model of shipping extremely cheap online purchases directly from overseas less attractive. The temporary €3 duty runs until July 2028, when normal product-specific customs duties are due to replace it.
Some online platforms are responding by storing products in European warehouses and importing in bulk. That means competition will continue, even as the rules change how those companies supply European shoppers.
Why It Matters
Chinese low-value e-commerce air shipments to the EU fell by about 50% in September compared with a year earlier. Meanwhile, Bangladesh’s garment export earnings rose 8.56% year-on-year to $3.08 billion that month. This shift in the European market creates an opening for Bangladesh to expand its bulk exports through established retailers by focusing on quality, reliability and value.
What We Think
This is an opportunity, but not an automatic win. Higher costs for ultra-cheap imports could make Bangladesh more attractive to European buyers. However, turning that opening into lasting business depends on manufacturers’ ability to meet European standards, offer competitive prices and deliver quality products on time.