Plan to Abolish 150 Euro Duty-Free Limit
23 Billion Products Imported Last Year... Doubled Increase
The European Union (EU) is reportedly considering imposing tariffs on goods purchased from Chinese online low-cost product platforms such as Temu, Shein, and AliExpress, according to major foreign media on the 3rd (local time).
Sources revealed that the EU Commission (EC) plans to propose abolishing the duty-free threshold of 150 euros (approximately 224,000 KRW) applied to products purchased through e-commerce by the end of this month. They added that this measure targets Temu, AliExpress, and Shein.
An EU official stated that the Commission had already proposed abolishing the tariff exemption threshold last year, but may expedite the adoption of this measure to respond to the surge in low-cost imports.
According to the Commission, 2.3 billion items priced below the 150-euro duty-free threshold were imported into the EU last year. Imports through e-commerce more than doubled compared to the previous year. In April alone, shipments exceeded 3.5 million. This is equivalent to nearly two deliveries per EU household.
Additionally, the Commission is considering requiring large e-commerce platforms to register for value-added tax (VAT) payments online regardless of product price. Since 2021, postal items sent to the EU must pay VAT regardless of price, but tariffs have been exempted.
However, a source mentioned concerns that this could increase the already heavy workload of customs officers, making it difficult for EU countries to agree on the measure.
The number of reported risky products in the EU has exceeded 3,400, a more than 50% increase compared to the previous year. The products with the most safety issues were cosmetics, toys, electrical products, and clothing.
In particular, the EU toy industry criticized Chinese companies for shipping dangerous toys to Europe. The industry group, Toy Industries of Europe (TIE), reported in February that none of the 19 toys purchased from Temu complied with EU standards after investigation. Furthermore, 18 of them were found to have substantial safety concerns. In response, Temu stated, "The 19 products are no longer available for purchase on the EU website," adding, "Product safety is our top priority, and we have strengthened monitoring of this product group and related requirements."
Christel Delberghe, Secretary General of EuroCommerce, a retail lobbying group, said, "We want all sellers targeting EU consumers, regardless of where they are established, to compete on the same level as EU companies in the retail sector." She also stated, "Existing laws are sufficient, but an effective and efficient cross-border enforcement strategy is needed."
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