EU plans to impose import tariffs on low-priced cross-border e-commerce products

Under current regulations, goods purchased on e-commerce platforms in non-EU countries are not subject to customs duties if their value is less than 150 euros. In the UK, imported goods worth 39 pounds or less are also exempt from import duties.

In addition to the planned elimination of the 150 euro duty-free threshold, another possible measure is that the EU will force large platforms to register for online VAT payments regardless of the value of the goods.

From 2021, parcels sent to EU consumers will be subject to VAT regardless of their value, but will be exempt from customs duties.

The new measures and plans may be formally proposed after the new EU Commission takes office later this year.

An EU official said that the European Commission had proposed the elimination of the tariff threshold last year, but it may now seek to speed up the adoption of this proposal to cope with the surge in cheap imports.

However, other officials warned that it may be difficult to get EU countries to agree to the new system, given that the new system will further increase the workload of EU customs officials, given that customs are currently operating at full capacity.

In recent years, EU retail industry associations and organizations have reported that cheap products from Chinese retailers (such as toys, cosmetics, electrical appliances and clothing) have many safety risks, and the number of them entering the EU market has increased rapidly recently.

Christel Delberghe, director general of the EU retail lobby group EuroCommerce, said that "we hope to provide a competitive environment that meets EU standards for all e-commerce platforms targeting EU consumers."

Temu, AliExpress and Shein all said that they will strengthen the control of relevant products and related requirements, and will be open and supportive of policy adjustments made by EU legislators that are in line with consumer interests.

If the European Commission's proposal to "eliminate the tariff-free threshold" is passed, the most popular Chinese e-commerce platforms will be greatly affected. The proposed measures will affect all sellers who ship directly from outside the EU. Of course, the increased costs will ultimately be paid by consumers, and with higher prices, Chinese sellers will undoubtedly need to further improve the competitiveness of their products.