EU to Consider Closing Off Duty Exemption That Aids Shein, Temu

The European Union is engaged on a proposal to impose import duties on low cost items purchased from on-line platforms outdoors the bloc, a transfer that may primarily goal Chinese language retailers akin to Temu, AliExpress and Shein, based on folks acquainted with the matter.

The EU at present has a €150 ($161) duty-free threshold for on-line purchases that’s meant for small presents or private packages however that has enabled a surge in small-value imports from these platforms, the folks, who spoke on situation of anonymity, mentioned.

The proposal would intention to stem this move and would apply to all non-EU e-commerce platforms, they added. The plan was first reported by the Monetary Occasions.

Spokespeople for the European Fee didn’t instantly reply to a request for remark.

Whereas it stays to be seen if there’s consensus throughout member states to take motion, the hassle provides to the rising momentum of protectionism towards Chinese language firms as its cheaper items threaten native producers. This month, the EU will introduce provisional tariffs of as excessive as 38 p.c on Chinese language electrical autos.

Within the US, which has an identical responsibility exemption for low-value private packages, a number of payments are earlier than Congress that may shut off or decrease what’s often called the de minimis threshold.

Nonetheless, inflation throughout the US and Europe signifies that there’s substantial demand amongst shoppers for a budget wares offered by platforms like PDD Holdings Inc’s Temu and people operated by Alibaba Group Holding Ltd. The rise of Shein has taken market share from European attire retailers like Hennes & Mauritz AB and Inditex’s Zara, whereas Amazon is planning to launch its personal low-cost on-line storefront.

By Alberto Nardelli

Be taught extra:

Temu, Shein Ordered to Provide Info on EU Tech Rules Compliance By July 12

Each firms are topic to harder necessities beneath the Digital Companies Act akin to doing extra to sort out unlawful and dangerous content material on their platforms.