Zap // shein; Our tea; Wavebreakmedia / Depositphotos
Donald Trump’s administration eliminated a fiscal gap that allowed Chinese retailers to send products directly to US consumers without paying import fees. Can the e -commerce platforms like Temu and Shein now flood Europe with cheap exports?
By eliminating a gap that allowed customer exemption, the US President, Donald Trump Temu and Shein, strangling the flow of cheap Chinese products to the United States.
In 2024, 1.36 billion shipments entered the US under the so -called Minimis Rulewhich exempted products less than $ 800 (704 euros) of import rates. This number represents a 9 times compared to 153 million in 2015.
Products purchased at Temu and Shein, which together represented 30% of products low value that entered daily in the US last year, will now be subject to a 30% rate or fixed rates of up to $ 50, in addition to 145% tariff on imports from China imposed by Trump last month.
With the prices for more than double consumersthe profit margins of these retailers are crumbling, explains the.
Thus, feared and shein will probably redouble your efforts in Europeexploring the European Union minimis gap to maintain its low cost model.
The “minimis” are small state aids, which are not subject to control of the European Commission, as they are not considered to have a significant impact on trade and competition between the Member States.
These aid allow states to grant companies support more flexibly, without being subject to an EU approval process for each aid granted.
Europe plans to eliminate the minimis gap
Although it is lower than the US limit, the exemption of 150 euros ($ 170) of the EU did not slow down explosive growth of the fear and the shein. In 2024, 4.6 billion low -value orders flooded the EU market – double compared to 2023 and the triple compared to 2022with 91% from China.
These 12.6 million daily packages are delivered without customsharming European retailers overloaded with Higher costs labor, supply chain and compliance.
Unlike its Chinese competitors, the European Union companies also do not benefit from international postal rates favorable.
Although the European Commission has proposed eliminate minimis exemption of the EU two years ago, the plan still awaits approval of the 27 Member States of the EU and the European Parliament. According to Bloomberg news agency, the measure is not expected to take effect before 2027.
This delay offers little relief for European companies that already face a strong Chinese competition, from e -commerce to solar panels and electric vehicles.
In addition, they will now have to face the Deviation of more electric vehicles and low -cost China products to Europe due to Trump tariffs in the US.
Many EU traders fear that this may mean that it has feared it and shein will Cheap Products in European markets, leading them to bankruptcy.
Faults on Security Tests
In addition to threatening to reduce profitability and provoke disqualification in EU companies, this influx of cheap products raises important concerns about SAFETY OF THESE PRODUCTS.
Second Agustin QueenGeneral Director of Beuc, a pressure group from European consumer organizations based in Brussels, groups such as their “Extensive evidence” of Chinese products – From make -up and clothing with toxic products to defective toys and appliances – that do not comply with EU safety standards.
“We need additional tools to face the influx of insecure products that enter Europe through small orders, often bought on platforms like Temu,” Reyna told DW. “Consumers are unknowingly putting their health and safety at risk.”
In January, the European Commission promised New rigorous controls About Chinese retail platforms to prevent “insecure, counterfeit or even dangerous” products from entering Europe.
The European Commerce Commissioner, Maros Sefcovicappealed to European legislators to impose a handling rate on Chinese orders for cover your growing conformity costs.
Many legislators want directly responsible for platforms Online by Sale of hazardous and fake products. Currently, markets like the act as intermediaries, not as salespeopleavoiding direct responsibility.
This creates a big problem for customs and regulatory authorities.
“With more than 12 million orders to enter the single market every day, It is simply unrealistic to expect the customs to act Like the last line of defense, ”said Reyna.“ That’s why it’s essential to hold online markets for the safety and compliance of the products they sell to Europeans. ”
VAT Fraud is a growing problem
There is increasing evidence of other illicit practices by the Chinese sellers, including the DECLARATION OF PRODUCT VALUE to avoid sales on sales or VAT. These range from 20% to 27%, depending on the state of the EU.
“There are many cases where importers declare an incorrect value for your shipments to be below the limit and avoid customs formalities, ”says Momchil antoveconomist and customs specialist, Deutsche Welle. “This is fraud.”
Last month, the EU Anti -Fray Office, Olaf, and the Polish authorities discovered a sophisticated VAT fraud scheme involving imported Chinese products to the EU.
The criminals claimed that the products were intended for other states EU to avoid customs taxes and rates. In fact, the products remained mainly in Poland.
In another 2023 example, Chinese exporters used Liège Airport in Belgium to Escape to 303 million euros in taxesusing a complex system involving private customs agencies and fake companies in other EU countries.
While the European Commission plan to eliminate the 150 euros exemption remains blocked, Some EU states adopted Sefcovic’s suggestion. The French government said last week that it would Intensify inspections about low value products that enter the country.
Imports product safety will be analyzedlabeling rules and environmental standards, and Paris will charge a “management fee” of fixed rate at each order.
European legislators will have to contain the fraudensure compliance and promote fair competition without limiting consumer access to affordable Chinese retailers.
