EU plans to crack down on imports from overseas platforms like SHEIN and Temu to protect domestic businesses
It has emerged that EU authorities plan to crack down on imports by online retailers based outside the EU, such as SHEIN and Temu, citing concerns that the 4 billion low-value parcels imported each year that are duty-free could have a negative impact on the performance of companies that comply with the rules.
EU set to crack down on Asian online retailers Temu and Shein
EU could target ultra low-cost e-tailers like Shein and Temu with package handling fee or import tax | TechCrunch
In the EU, 'parcels up to 150 euros (about 23,000 yen) are exempt from customs duties,' and companies such as SHEIN and Temu are taking full advantage of this tax-free quota. The number of tax-free imported goods is expected to continue to grow, from 2.3 billion items in 2023 to more than 4 billion items in 2024. The number of sea cargo arriving at the Port of Rotterdam in the Netherlands and air cargo arriving at Schiphol Airport is said to be an astonishing 40 items per second.
This duty-free allowance has been set up because it is impossible to check the contents of every package, but instead, there are many cases where products with safety issues or counterfeit goods disguised as genuine products are imported.
In other words, companies based within the EU have to adhere to the strict safety standards set by the EU, which means higher production costs, while overseas platforms ignore the standards and are able to send cheap products into the EU.
The Financial Times, a news site, reports that EU authorities are preparing to take measures against this, as it will have a negative impact on the performance of companies in the EU and will inevitably have an impact on retailers due to cheap imports.
The Financial Times, citing five people familiar with the matter, said EU authorities were considering measures including scrapping duty-free allowances, imposing a new tax on the revenue generated by e-commerce platforms and introducing a per-item administration fee.
There have been previous reports that relevant parties have been proposing to abolish the tax-free quota from 2023.
EU considers abolishing duty-free quota to impose import tariffs on Chinese SHEIN, Temu, and AliExpress - GIGAZINE
EuroCommerce , a European retail and wholesale trade association, said it supported the authorities' move but that it would be difficult to justify the introduction of new administrative fees because standards for customs fees are set by the World Trade Organization (WTO).
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