EU Ministers Agree to Fast-Track Crackdown on Duty-Free Rule Used by Shein, Temu
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The European Union’s finance ministers agreed to end duty-free cheap parcels as early as next year, instead of in 2028 as previously planned, the EU’s executive branch, the European Commission said on Thursday.
Under the de minimis rule, imported goods valued less than €150 (about $175) are exempt from customs duties. The rule has benefited eRetailers that sell cheap goods from China, such as AliExpress, Amazon, Shein, and Temu.
He said ministers are “determined” to abolish the rule “as soon as possible next year.”
“Reaching a political agreement on abolishing the current 150-euro-customs de minimis threshold sends a strong signal that Europe is serious about fair competition and about defending the interests of its businesses,” Sefcovic said.
The EU previously planned to abolish the de minimis threshold in 2028 as part of a full overhaul to its customs system.
The changes will require approval from the European Parliament.
Of that 2024 figure, 4.17 billion, or 91 percent, came from China, compared to 1.9 billion in 2023.
“This surge coincides with the extremely rapid growth of certain online marketplaces. Temu and Shein, in particular, have grown exponentially in the EU market, scaling to over 75 million users in the EU in the space of a few months in 2024,” the Commission said.
The European Council said the de minimis rule has incentivized non-EU companies to split shipments into smaller parcels, creating environmental concerns. It also said the rule has been exploited, with an estimated 65 percent of small parcels being undervalued.
The Epoch Times has reached out to Alibaba Group, Amazin, Shein, and Temu for comment.
The plan to bring forward the end to duty-free cheap goods was welcomed across Europe.
“Ending the exemption will close long-standing loopholes that have been systematically been exploited to avoid customs duties,” Denmark’s economy minister, Stephanie Lose, said.
Zalando, an online retailer out of Germany, said the exemption’s removal should be fast-tracked. Retail and eCommerce associations out of Sweden and Germany believe the removal would be a first step toward fairer competition, and Luca Sburlati, chairman of Italy’s fashion lobby, Confindustria Moda, said taxing parcels valued less than €150 is “essential for the survival of our textile and clothing sector.”
EU countries have begun instituting national handling fees, pushing the EU to move faster on removing its de minimis policy.
Alexandre Bompard, CEO of supermarket group Carrefour, said that a €2 fee on low-value packages was “a joke.”
“Usually the market readjusts. ... One or two euros will not really change the attractiveness of those platforms,” Matteo Del Fante, the CEO of Poste Italiane, an Italian business that handles millions of parcels a year, said on Thursday.
