The European Commission (EC) plans to impose tariffs on cheap goods from Chinese e-shops such as Temu, Shein or AliExpress. It wants to achieve this by abolishing the current limit of 150 euros, up to which shipments from non-EU countries are exempt from customs duties. The Financial Times (FT) reported today, citing three people familiar with the proposal.
It will be hard to convince member states
“We fully support the lawmakers’ efforts to reform the provisions on small-scale shipments,” a spokesman for Shein told Reuters. Last year alone, the EC said EU consumers received 2.3 billion parcels under 150 euros. Imports of goods bought online more than doubled in a year. It peaked in April, when 350,000 such shipments arrived in the EU, equivalent to two packages per household.
The plan to abolish the €150 limit is part of a customs reform proposed by the EC as early as May 2023. But in an attempt to respond to the surge in cheap imports, it could now try to speed up the reform, an EU lawmaker told the FT. But another official warned that it would be difficult for the EC to convince some member states because the new customs regime would mean a significant increase in the workload of customs staff.
Temu gets stronger but faces accusations
Already at the end of 2021, small shipments from outside the EU of up to €22 will lose their exemption from value-added tax (VAT).
Chinese online cheap fashion retailer Temu is facing complaints from consumer protection organisations in the European Union that Temu does not protect consumers sufficiently and uses manipulative practices. The EU market is experiencing strong growth, with over 75 million people in the EU using Temu at least once a month, according to May data.
Shein has become one of the largest fashion retailers in the world. It offers a huge range of cheap fashionable clothes and uses social media influencers to promote itself. It has faced harsh criticism for its environmental approach and accusations of using forced labour in its supply chain.
Source: Czech Press Office
