EU considers imposing tariffs on cheap Chinese online goods
Germany supports the reform, arguing the exemption floods the market with cheap imports.
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The EU plans to impose customs duties on inexpensive goods purchased from online Chinese retailers such as Temu, Shein, and AliExpress. Under EU regulations, items bought online from non-EU countries are exempt from customs duties if their value is under €150. However, the European Commission is considering eliminating this threshold due to the overwhelming volume of e-commerce, with two billion parcels valued under €150 arriving in the EU from outside countries in 2023 alone.
Initially part of a broader customs overhaul introduced in May 2023, the proposed reform may now be accelerated to address the influx of low-cost imports. Critics, particularly in the United States, argue that companies like Shein and Temu exploit tax exemptions to offer products at significantly low prices, such as dresses for $8 and smartwatches for $25, undercutting local competitors.
Why does it matter?
Germany is one of the EU countries that supports an overhaul of the EU import taxes that could remove the duty-free exemption for parcels under €150. Germany’s leading retail association, Handelsverband Deutschland (HDE), has urged the government to act, claiming the exemption has caused a surge in small parcels from online platforms entering the EU. However, not everyone agrees. Ecommerce Europe, representing companies like Amazon and eBay, cautions that removing the duty-free limit could heighten trade tensions and provoke retaliatory actions from key partners such as the US.