The European Union is to revamp its customs procedures, focusing on the booming low-cost e-commerce sector, in a move that could have a huge influence on global online retail giants and consumer purchasing patterns.
Ursula von der Leyen, President of the European Commission, announced the initiative after being re-elected for a second five-year term last week. She stated, “We will address challenges with e-commerce platforms to ensure that consumers and businesses benefit from a level playing field based on effective customs, tax, security, and sustainability controls.”
The proposed modifications center on the deletion of the present 150 euro exemption threshold for import tariffs, which was scheduled to be repealed on March 1st, 2028. This modification seeks to limit the growing influence of Chinese ultra-fast fashion companies like Shein, Temu, and Aliexpress while also harmonizing with the EU’s broader Green Deal goals and promoting sustainable supply chains.
The scope of the problem is significant. According to EU data, in 2023, 2.3 billion articles costing less than 150 euros were imported duty-free. The fast expansion of e-commerce is clear, with imports more than doubling year after year.
The proposed modifications center on the deletion of the present 150 euro exemption threshold for import tariffs, which was scheduled to be repealed on March 1st, 2028. This modification seeks to limit the growing influence of Chinese ultra-fast fashion companies like Shein, Temu, and Aliexpress while also harmonizing with the EU’s broader Green Deal goals and promoting sustainable supply chains.
The scope of the problem is significant. According to EU data, in 2023, 2.3 billion articles costing less than 150 euros were imported duty-free. The fast expansion of e-commerce is clear, with imports more than doubling year after year.
On sustainability, von der Leyen committed to reduce the European Union’s global warming contribution by 90% by 2040 as part of a Clean Industrial Deal, which will be published during the EC president’s first 100 days in office.
