My impression is that the rules make sense. For big companies. Sadly there are no limits whatsoever, so the same thing that’s easy for big companies, is essentially impossible for smaller ones.

I’ve seen several smaller bands in the EU stop sending merch to any country in the EU not their own, because they don’t know how to handle this.

TFA laid out exactly how destructive it is. It would wipe out the 50% of Lectronz sellers who sell < 10 items per year, and thus Lectronz itself, not to mention anyone else (e.g., artists) who only sell a handful of items a year.

What wasn't clear? Do you not find those claims plausible?