EU plan to impose import duty on cheap goods could dent Shein and Temu
Source: The Guardian
EU plan to impose import duty on cheap goods could dent Shein and Temu
Brussels move to end tax loophole exploited by China-linked marketplaces could also hit Shein’s planned London listing
Sarah Butler and Lisa O'Carroll
Wed 3 Jul 2024 14.25 BST
Last modified on Wed 3 Jul 2024 15.24 BST
The EU is moving forward with plans to impose customs duty on cheap goods in a shift that could hit imports from online retailers and harm a hoped-for London listing by the fast-fashion seller Shein.
The potential change comes amid growing disquiet among retailers based in mainland Europe, the UK and the US about rising competition from Chinese-linked marketplaces Shein and Temu, which exploit a loophole that excludes low-value items from import duty.
In the EU, the threshold for the levy is €150 (£127) and in the UK it is £135, enabling retailers such as Shein to ship products directly from overseas to shoppers in those markets without paying any import duty. In the UK, items valued at £39 or less also do not attract import VAT.
Subsidised postage costs in China make it more cost-effective for businesses based there to send cheap goods by air.
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Read more: https://www.theguardian.com/business/article/2024/jul/03/eu-plan-to-impose-import-duty-on-cheap-goods-could-dent-shein-and-temu