EU Considers Ending Duty-Free Threshold for Online purchases Amidst Concerns Over Chinese E-commerce Giants
The European Union is reportedly considering eliminating the current duty-free threshold for goods purchased online, a move that would significantly impact e-commerce platforms, particularly those based in China.This potential policy shift mirrors actions taken by the United States, which under President Donald Trump, abolished its $800 duty-free threshold to address concerns about Chinese sellers. American consumers now face an additional 30% tax or a minimum of $50 per item on such purchases.
The discussion within the EU is part of a broader effort to address systemic issues in customs and taxation related to the burgeoning online retail sector. Another possibility being explored is the establishment of a unified EU-wide customs authority to manage these complexities more effectively.
Irish Minister for trade, Robert Troy, has indicated that the matter is a significant concern and is likely to be a topic of discussion. While it remains uncertain if the issue will be formally raised at the upcoming EU-China summit in Beijing on July 25th, Troy has stated his intention to address it directly. He also confirmed plans to engage with Chinese authorities directly later this year.
In response to scrutiny, fast-fashion retailer Shein has highlighted its investments in compliance and safety. The company stated it is indeed investing $15 million this year in initiatives such as product and safety quality testing,conducting 2.5 million tests, and has established partnerships with 15 testing centers globally, including in the UK and Germany. Shein also noted that it has removed 500 vendors since launching its marketplace. A spokesperson emphasized the company’s commitment to consumer trust and ensuring product safety and compliance,stating that all vendors must adhere to Shein’s code of conduct,stringent safety standards,and relevant laws and regulations.
Similarly, e-commerce platform Temu has asserted its commitment to product safety and compliance. A spokesperson explained that Temu employs a system of seller vetting, proactive monitoring, and responsive takedowns to prevent, detect, and remove unsafe products. The company also stated its collaboration with globally recognized testing and certification organizations, including TÜV SÜD, Eurofins, SGS, and Bureau veritas, to ensure products meet safety and quality standards.
