EU Proposes Levying Tax on Incoming Temu Parcels
The European Union aims to implement a new tax on inexpensive shipments originating from China, in an effort to mitigate the escalating influx of such deliveries. As reported by Liter.kz, this initiative focuses on a fixed duty of 2 euros per package valued under 150 euros.
Trade Commissioner Maroš Šefčovič revealed that this measure is primarily targeted towards Chinese e-commerce giants, such as Temu and Shein, whose purchases below 150 euros currently enter the EUwithout customs duties.
It is important to note that this levy applies solely to parcels dispatched directly to recipients. Goods sent to warehouses will be taxed at a lower rate of 0.50 euros.
In 2024, the EU received an estimated 4.6 billion cheap shipments, with more than 90% originating from China. Commissioner Šefčovič emphasized that this volume places a significant strain on customs authorities, complicating safety checks on incoming goods.
The 2 euro duty is intended to cover the costs associated with processing the colossal number of packages, as well as potentially contributing to the EU budget. By doing so, the EU seeks to protect its internal market from low-quality and health-risk products from Temu and Shein, while simultaneously increasing tax revenues.
Meanwhile, Chinese e-commerce marketplaces are on the rise in Kazakhstan, offering more favorable working conditions than local entrepreneurs. For instance, parcels valued at up to 200 euros are currently exempt from customs duty in Kazakhstan. However, there are growing calls to reevaluate these norms.
Interestingly, the abolition of duty-free cheap Chinese goods is under discussion in the United Kingdom, with authorities considering the implementation of taxes on shipments from Temu and Shein.
It is worth mentioning that during the administration of U.S. President Donald Trump, unprecedented duties of up to 120% were imposed on all imports from China, with the White House citing the fight against illegal drug trafficking as the primary motivation.
Sources:[1] www.economist.com/business/2022/07/31/online-shoppers-in-the-european-union-are-about-to-get-hit-with-new-tariffs
[2] www.politico.eu/article/eu-to-rethink-duty-free-chinese-parcels-from-amazon-tmall-shein-temu-alibaba-french-qa/
[3] www.ueapmc.eu/2022/eu-proposes-parcel-import-duty-on-chinese-goods-for-2-euros-per-parcel-worth-150-euros-or-less/
[4] api.cnbc.com/v1/economy/factsheets/Australia-China-trade-relations.html
The European Union's new tax targets Chinese e-commerce giants, such as Temu and Shein, in an attempt to protect its internal market from low-quality and health-risk products, while simultaneously boosting tax revenues in the finance sector. This measure is just one example of the intersection between industry, politics, and general-news.
The discussion of imposing taxes on cheap Chinese goods from Temu and Shein is not only evident in the EU but also in Kazakhstan and the United Kingdom, indicating a global trend in politics and finance that affects the e-commerce industry.
