EU mulls closing off duty exemption for cheap goods that helps Shein, Temu, AliExpress

The effort adds to the growing momentum of protectionism against Chinese companies as its cheaper goods threaten local producers

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The EU is considering closing off a duty exemption that has enabled a surge in small-value imports from Chinese e-commerce platforms. Photo: AFP

Published: 10:50am, 4 Jul 2024

The European Union is working on a proposal to impose import duties on cheap goods bought from online platforms outside the bloc, a move that would primarily target Chinese retailers such as Temu, AliExpress and Shein, according to people familiar with the matter.

The EU currently has a €150 (US$161) duty-free threshold for online purchases that is meant for small gifts or personal packages, but that has enabled a surge in small-value imports from those platforms, the people, who spoke on condition of anonymity, said.

The proposal would aim to stem this flow and would apply to all non-EU e-commerce platforms, they added. The plan was first reported by the Financial Times.

Spokespeople for the European Commission did not immediately reply to a request for comment.

While it remains to be seen if there is consensus across member states to take action, the effort adds to the growing momentum of protectionism against Chinese companies as its cheaper goods threaten local producers. This month, the EU will introduce provisional tariffs of as high as 38 per cent on Chinese electric vehicles.

In the US, which has a similar duty exemption for low-value personal packages, several bills are before Congress that would close off or lower what is known as the de minimis threshold.