Consumers in Portugal seek to impose a €20 charge for purchases from online retailers Temu and Shein due to perceived below-market pricing and potential quality concerns.
The European Commission is contemplating a handling fee of €2 for low-value shipments entering the EU from online platforms like Shein and Temu, as part of a move to address the escalating costs of managing and inspecting a torrent of small packages from these platforms at national customs agencies across the EU's 27 member states. Packages worth €150 or less, when shipped directly to consumers, would be subject to this fee, whereas a smaller €0.50 charge would apply to parcels routed via EU warehouses.
The proposed levy, to be born by the online retailers rather than consumers, is projected to generate approximately €3 billion annually and help bring balance to the playing field for local European retailers who argue that the current duty-free policy grants an unfair advantage to Shein and Temu. Portuguese Textile and Clothing Association (ATP) and the National Association of Clothing and Apparel Industries (ANIVEC) are among those advocating for this change, as they assert that the current duty-free policy enables platforms like Shein and Temu to import large volumes of affordable clothing without customs duties or VAT, thereby undercutting domestic manufacturers and retailers.
Ana Paula Dinis, the executive director of ATP, referred to the proposed €2 fee as a "ridiculously low value," suggesting instead a fee of €20 per purchase made on these e-commerce platforms. She posits that the sum collected should finance the additional human and financial resources required for enhanced border control of these orders. Similarly, Cesar Araujo, president of ANIVEC, regarded the preliminary proposal from Brussels as a "scandal," citing the lack of customs control of these orders which may contain not just clothing items but also weapons or other illicit goods.
Industry groups such as ATP and ANIVEC are petitioning for an end to the current rule that exempts purchases worth up to €150 from customs duties and the payment of VAT for transactions under €20. They assert that it is essential to apply VAT and customs duties to purchases made on these platforms, particularly in the current circumstances where the risk of losing the local textile and clothing industries is imminent.
The European Commission's proposed handling fee for low-value shipments from online platforms like Shein and Temu is projected to generate around €3 billion annually, but Ana Paula Dinis, the executive director of ATP, suggests a more substantial fee of €20 per purchase to finance enhanced border control. Meanwhile, Cesar Araujo, president of ANIVEC, sees the current preliminary proposal as a scandal, advocating for the application of VAT and customs duties on purchases made on these platforms, especially in light of the current threat to the local textile and clothing industries.
