EU considers scrapping duty-free quota to impose import tariffs on Chinese SHEIN, Temu, and AliExpress
It has become clear that the European Union (EU) is considering abolishing the existing standard of 'exemption from tariffs on imports below 150 euros (26,000 yen)' in order to impose tariffs on products of Chinese petit pla brands SHEIN and Temu.
EU takes aim at China's Temu and Shein with proposed import duty
EU plan to impose import duties on cheap goods could dent Shein and Temu | Shein | The Guardian
https://www.theguardian.com/business/article/2024/jul/03/eu-plan-to-impose-import-duty-on-cheap-goods-could-dent-shein-and-temu
EU targets the likes of Temu and Shein with cheap goods crackdown | Euronews
https://www.euronews.com/business/2024/07/03/eu-targets-the-likes-of-temu-and-shein-with-cheap-goods-crackdown
EU takes aim at China's Temu and Shein with proposed import duties, FT reports | Reuters
https://www.reuters.com/business/retail-consumer/eu-takes-aim-chinas-temu-shein-with-proposed-import-duty-ft-reports-2024-07-03/
According to sources obtained by the Financial Times, a British economic media outlet, the European Commission (EC), the EU's policy enforcement body, is considering abolishing the '150 euro threshold for exemptions from import tariffs' in order to impose tariffs on products from Chinese online marketplaces Temu, AliExpress, and SHEIN.
According to the EC, 2.3 billion items of duty-free goods will be imported into the EU in 2023, more than double the number from the previous year. The '€150 threshold for exemptions from import duties' essentially only applies to online retailers that ship products directly to customers from outside the EU. Therefore, this exemption does not apply to sellers such as Amazon, who are based in the US but use EU-based sellers to ship products to customers.
The EC is also considering making large platforms obliged to pay value-added tax (VAT) online. Since 2021, parcels sent to EU consumers have paid VAT regardless of the amount, but there are also exemptions from tax.
An anonymous EU official said the EC had already proposed abolishing the duty-free quotas as of 2023, and that it 'may bring forward the introduction of measures' to combat the recent surge in cheap imports.
However, abolishing the duty-free quotas would increase the workload of already overworked customs officials, so 'it will be difficult to get EU countries to agree,' another source said.
The EU toy industry has accused Chinese retailers of shipping dangerous toys to Europe, and one industry group, Toy Industries of Europe, purchased 19 toys from Temu in February 2024 and conducted an investigation . The investigation revealed that 18 of the 19 toys did not meet EU safety standards.
In response, Temu issued a statement saying: 'The entire list of 19 products published by Toy Industries of Europe is no longer available for purchase in the EU. Product safety is a major concern for us and we have stepped up our monitoring of this product group and its related requirements.'
'We want all players targeting EU-based consumers to be on a level playing field with the EU when it comes to online retail, wherever they are based,' Christelle Del Berge, executive director of retail lobby group EuroCommerce, said. 'Existing laws are sufficient, but an effective and efficient cross-border enforcement strategy is needed.'
Temu noted that the company's remarkable growth is not dependent on sales of cheap products, and responded to the Financial Times report by saying, 'We are open to and will support legislative policy adjustments that are in the interest of consumers.' AliExpress also noted, 'We are working with legislators to ensure that we are in a compliant position in the EU market, and we are and will continue to be.' SHEIN also commented that it 'fully supports' the abolition of the tax exemption.
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