The EU could impose additional customs duties on platforms such as Temu, Shein and AliExpress. This could lead to a significant increase in prices for consumers…
With an ultra-aggressive marketing policy and unbeatable prices, Chinese giants Shein, Temu and AliExpress have firmly established themselves on the European market. Despite the harsh criticism they attract, particularly due to the incentive for overconsumption, their catastrophic ecological impact and the deplorable working conditions of employees, these e-commerce platforms are enjoying overwhelming success. However, this success has ended up attracting the attention of the European authorities, who have decided to toughen up their stance. And this could well have an impact on consumers! As revealed by the Financial Timesciting three people familiar with the matter, the European Commission is preparing to impose tariffs on cheap goods purchased from Chinese online retailers and shipped to European countries. It plans to propose later in July to abolish the current €150 threshold below which goods purchased online in a third country are not subject to customs duties. The additional taxes would result in an immediate increase in prices for consumers and longer delivery times.
Temu, Shein, AliExpress: the end of customs tax exemption
Currently, in the European Union, packages purchased online from a country outside the EU are not subject to customs duties if their value is less than €150. However, many packages entering the EU are deliberately undervalued in order to avoid import customs duties. The tax exemption allows Chinese platforms to offer much cheaper products, while avoiding customs inspections, which could uncover counterfeit products, which are legion on such sites.
Also, as part of a draft reform of the European customs code proposed by the Commission in May 2023, the authorities are seeking to end this generous ceiling. They are now trying to accelerate the adoption of this decision due to the surge in cheap imports. Indeed, no less than two billion parcels with a declared value of less than €150 arrived in the European Union from third countries in 2023, according to figures from the European Commission. The latter states that “The huge volumes of e-commerce are testing the limits of customs”. In addition, this should generate an additional billion euros in revenue.
This measure comes at a time of particularly tense trade relations between Beijing and Brussels. Indeed, the European Commission announced in June that it would temporarily impose additional customs duties on imports of Chinese electric vehicles. Needless to say, this did not please China…
In addition, Temu, Shein and company are also in the sights of the European authorities for non-compliance with the DSA (Digital Services Act) (see our article). Indeed, e-commerce platforms do not hesitate to sell counterfeits, dangerous or harmful items for health, ignoring European regulations. They have until September to comply, under penalty of a fine of up to 6% of their global turnover and, in the event of a repeat offense, a ban in the European area.