EU reportedly revisits proposal to impose import duties on cheap Chinese goods

08 Jul 2024 --- The European Commission (EC) could soon slap import duties on cheap goods from China, which could impact online beauty retailers such as Temu, AliExpress and Shein. 

The Financial Times says that later this month, the EC could propose removing the €150 (US$162.49) threshold under which items can be purchased duty-free. The proposal must be discussed and accepted by the European Parliament. The commission previously proposed removing the duty threshold last year but an EU official said it could now speed up its adoption to counter the increase of cheap imports.

According to the EC, over two billion items were shipped to the EU last year. E-commerce imports topped 350,000 items in April alone. Apparently, the EC is concerned about substandard product quality from China.     

Last month, Shein reportedly filed confidential papers with UK regulatory bodies ahead of a potential initial public offering on the London Stock Exchange. The fast fashion giant could go public in the second half of the year, however, the EU import duties may affect this plan.

The EU targets Chinese marketplaces.Revisiting threshold removal
An EC spokesperson says, “In May last year, we put on the table customs reforms for a simple, smarter and safer customs union. What we have proposed now is there is no exemption anymore for packages valued at below €150.”

Subsidized postage costs in China make it more cost-effective for regional businesses to send cheap goods by air.

The proposed provisions would apply to any online retailer shipping to EU customers directly from outside the bloc. Another possible measure is to make it compulsory for large platforms to register for VAT payments online, no matter the value.

These efforts could give equal footing to European retailers competing with Chinese businesses.  

By Sabine Waldeck