The European Union is planning to impose customs duties on low-cost imports from Chinese online retailers like Temu, Shein, and AliExpress. Currently, items valued under €150 ($161) are duty-free, but this could change soon to counter the surge of cheap imports.
The European Union is drafting plans to introduce customs duties on inexpensive goods from Chinese e-commerce giants Temu, Shein, and AliExpress. According to the Financial Times, the European Commission will suggest removing the €150 ($161) duty-free threshold later this month. This proposal is part of a broader effort to reform customs rules and manage the massive volumes of e-commerce packages flooding into the EU.
Under existing regulations, items bought online from non-EU countries are exempt from customs duties if their value is below €150. In 2023, two billion parcels with declared values under this threshold entered the EU. This influx has strained customs systems, prompting calls for reform. The EU’s customs reform project, initially proposed in May 2023, aims to address these challenges and might now be expedited.
Retailers like Shein and Temu have benefited from these exemptions, allowing them to offer ultra-cheap products, such as $8 dresses and $25 smartwatches. A spokesperson for Shein expressed support for the reforms, while AliExpress parent Alibaba, Temu, and the European Union have not yet commented. Critics argue that these companies exploit tax exemptions to undercut rivals and bypass customs checks.
The EU's move reflects growing concerns about the impact of cheap imports on local businesses. It also aligns with similar complaints in the United States about Chinese retailers using tax exemptions to gain an unfair advantage. The proposed duty changes could significantly affect the business models of companies like Shein and Temu, potentially leading to higher prices for consumers but leveling the playing field for EU-based retailers.
Will the EU’s new import duty make you rethink your online shopping habits?
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