Exemption limit could fall
Customs reform aims to end flood of cheap Chinese products
23.05.2024, 11:56 a.m.
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Two billion packages, each worth less than 150 euros, will arrive in the EU from third countries in 2023. It is assumed that this will make it easier for cheap products from Asian retailers to reach the market. That is set to change. But opposition is not only coming from Temu and Shein.
The German government could support a possible reorganization of import regulations in the European Union, which could affect Asian online retailers such as Shein and Temu. According to the trade association HDE, the German Ministry of Finance wants to support the abolition of the 150-euro duty-free limit in the EU. For packages with a value of less than 150 euros, no customs duties currently have to be paid on import – cheap retailers from the Far East benefit from this.
The HDE is concerned about the customs regulations, as they believe they encourage a flood of cheap goods on their way to Europe. The association also criticises the fact that numerous goods cannot be adequately checked by customs authorities to ensure that they comply with European standards.
Federal Finance Minister Christian Lindner has now signaled that Germany will support an end to the 150 euro rule at European level, the trade association said. The Finance Ministry said it did not want to comment on specific cases, but generally welcomed the fact that the EU Commission had put forward proposals to adapt customs regulations to the challenges of online trade. The Commission had put forward corresponding reform plans in May 2023.
EU could face retaliatory measures
However, the online retailer explained that Temu’s growth is not dependent on regulations for the duty-free import of goods. Rather, it is the result of efficient supply chains. The online retailer Shein, which is currently seeking a stock exchange listing in London, stressed that the company adheres to all rules and laws – including customs regulations. Shein’s pricing structures are not based on EU customs regulations.
The Ecommerce Europe association, which includes Amazon and eBay, has already voiced criticism of a possible removal of the exceptions. This could lead to retaliatory measures from EU trading partners.
According to the EU Commission, around two billion packages with a declared value of less than 150 euros each reached Europe from third countries last year. The exemption could also lead to online retailers splitting up deliveries in order to stay below the 150 euro threshold. In around 65 percent of the packages, the value may also have been deliberately declared too low. Shein and Temu stated that they showed the correct values of the goods and did not split up shipments.