EU Targets China’s Temu, Shein with Import Duty

The Financial Times reported on Wednesday that three sources told them the EU is considering levying customs tariffs on cheap goods from Chinese online merchants like Temu, Shein, and AliExpress

According to the report, the European Commission will propose eliminating the current 150 euros ($161) threshold for duty-free purchases later this month.

According to the most recent EU regulations, Customs duties do not apply to shipments purchased online from a non-EU country if their value is less than 150 euros.

The Commission reports that in 2023, two billion parcels with a declared value of less than 150 euros arrived in the EU from foreign countries. The Commission asserts that “the sheer volumes of e-commerce are testing customs’ limits.”

The FT report stated that the EU has been contemplating the abolition of the limit as part of a customs reform project proposed by the Commission in May 2023. However, it may now attempt to expedite its adoption to address the increase in low-cost imports.

Alibaba (9988. HK), the parent company of AliExpress, Temu, and the European Union, did not immediately respond to Reuters’ requests for comment. However, a spokesperson for Shein stated, “We are fully supportive of efforts by lawmakers to reform the de minimis provision.”

Shein and Temu have been the subject of criticism in the United States for using import tax exemptions to circumvent customs inspections and undermine their competitors.

The practice enables the two companies to provide smart watches for $25 and outfits for as little as $8 to consumers worldwide.