EU ends tax loophole exploited by SHEIN, Temu, and Aliexpress

Key Points:

• Starting July 1, the EU will impose a flat €3 customs duty on low-value e-commerce imports under €150, ending the previous exemption and targeting unfair competition, unsafe products, fraud, and environmental harm linked to cheap imports.
• The new duty addresses a loophole exploited by companies like SHEIN, which bypassed up to 12% in import duties by shipping low-value goods directly from China, undercutting European retailers and avoiding safety and environmental regulations.
• Digital marketplaces are now legally deemed importers responsible for product safety compliance, shifting liability from consumers to platforms and enhancing enforcement capabilities against non-compliant goods.
• Consumers will face higher prices and longer delivery times due to added fees and customs checks, but will benefit from safer products and upfront payment of duties, eliminating surprise charges.
• The measure aims to level the playing field for European retailers by curbing untaxed imports, encouraging foreign sellers to adopt local distribution hubs, and promoting sustainability and compliance with EU standards.