The European Union is preparing to levy customs duties on inexpensive goods purchased from Chinese online retailers like Temu, Shein, and AliExpress, according to a report by the Financial Times citing sources familiar with the matter. The European Commission is expected to propose eliminating the current 150 euros ($161) threshold for duty-free imports later this month, the report stated.
Currently, EU regulations exempt packages purchased online from non-EU countries from customs duties if their value is under 150 euros. In 2023, the EU received two billion parcels with declared values below this threshold, putting significant strain on customs operations.
The EU has been discussing the removal of this limit as part of broader customs reforms proposed in May 2023. The urgency to adopt these reforms has heightened to address the influx of low-cost imports, as per the FT report.
“We support efforts by legislators to reform the de minimis provision,” a Shein spokesperson commented. Alibaba, parent company of AliExpress, Temu, and the EU did not immediately respond to requests for comment from Reuters.
Critics in the United States have already raised concerns that Shein and Temu exploit import tax exemptions to undercut competitors and evade customs scrutiny. This practice enables them to offer products such as dresses for as little as $8 and smartwatches for $25 to global consumers.
