Industrial News

EU to End Tax-Exemption for Cheap Imports by 2026

Posted on by Evonsa
20
Nov

European finance ministers have reached a consensus to fast-track the removal of the de minimis customs duty exemption. This policy currently allows goods valued under €150 (approx. $175) to enter the EU duty-free.

Key Details

  • New Timeline: The exemption will be scrapped starting in the first quarter of 2026, two years earlier than the original 2028 target.
  • Main Targets: Low-cost e-commerce platforms shipping directly from China, specifically SHEIN, TEMU, AliExpress, and Amazon Haul.
  • Reason for Action: The EU aims to stop the “dumping” of cheap goods and close a long-standing loophole that distorted market competition and allowed for systematic tax evasion.
  • Proposed Replacement: Maros Sefcovic, the EU Trade Commissioner, has suggested implementing a “simplified interim tariff” to replace the current exemption.

Reactions

  • European Retailers: Strongly supportive. Companies like Germany’s Zalando and various retail associations (in Sweden and Germany) view this as a vital step toward fair competition.
  • Government Officials: Denmark’s Economy Minister, Stephanie Lose, stated that this move will finally close a loophole that has been exploited for years.

***Photo Reference:https://www.tonlexing.com/shipping-from-china-to-europe/***