The European Union is about to suggest a 2 euro ($2.27) dealing with price for low-value e-commerce packages coming into the bloc, because it struggles to take care of the billions of products offered by on-line platforms equivalent to Shein and Temu to European shoppers.
EU customs authorities dealt with some 4.6 billion low-value packages purchased on-line in 2024, 91% of them coming from China and a doubling from 2023.
The European Fee in February mentioned it will take away the duty-free remedy of low-value consignments price not more than 150 euros, however not till 2028. The Fee additionally mentioned it will discover the potential of an e-commerce dealing with price.
The price wants approval from EU governments, which haven’t but mentioned it, and the European Parliament. France referred to as for such a measure final month.
The EU government mentioned the price would cowl work to make sure compliance of the massive variety of parcels with EU guidelines, equivalent to for toy security, and could be incurred by the web retailer, quite than by prospects.
“With 4.6 billion packages, you may’t actually have correct controls and to introduce it prices some huge cash and due to this fact it’s honest to ask Alibaba, Temu or Shein to pay their justifiable share of the price,” Bernd Lange, chair of the European Parliament’s commerce committee, instructed reporters on Wednesday.
Alibaba, Shein, and Temu didn’t instantly reply to a request for remark.
China’s international ministry mentioned it hoped the EU would abide by its dedication to openness and “present a good, clear and non-discriminatory enterprise surroundings for Chinese language companies”.
The Fee has put ahead a proposed 2 euro dealing with price per parcel delivered on to the client or a smaller 50 cent price for parcels dealt with by a warehouse inside the EU.
The US this month scrapped its “de minimis” coverage that allowed duty-free entry to parcels price lower than $800.
European retailers say the present duty-free coverage offers Shein and Temu an unfair benefit.
On-line retailer Zalando, which sells branded garments in 25 European international locations, instructed Reuters it welcomed the price proposal, however mentioned the elimination of the customs exemption threshold needs to be fast-tracked.
The dealing with price “may very well be a part of the answer to treatment the unfair competitors from Temu and others,” mentioned Stephan Tromp, deputy managing director of German retail affiliation HDE. “On the identical time, the duty-free restrict of 150 euros have to be abolished.”
Polish e-commerce firm Allegro referred to as the price a “step in the correct course” however mentioned the main points of its implementation shall be essential.
For instance, the decrease 50-cent price for items dealt with by warehouses within the EU would possibly in the end favour world corporations with massive logistics operations whereas small companies must pay the 2-euro price, Ewelina Stepnik-Godawa, regulatory affairs supervisor at Allegro, mentioned in an emailed remark to Reuters.
Europe’s largest fast-fashion retailer, Zara proprietor Inditex, declined to touch upon the price plan.
In a BBC interview earlier this month, Inditex CEO Oscar Garcia Maceiras backed the elimination of the duty-free coverage to make sure a “degree enjoying discipline” with the identical guidelines for all rivals.
By Philip Blenkinsop, Ethan Wang, Helen Reid, Anna Pruchnicka, Matthias Inveradi; Editors: Richard Lough, Jane Merriman
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