One of the main competitive advantages of Chinese companies such as their low prices. The low cost of its products is due (beyond cheap labor) to not having to pay tariffs when entering the European Union when it comes to packages whose value does not exceed 150 euros.
However, that is going to change very soon. Starting next July 1the European Union is going to impose a that enter the European Economic Area.
Through the approval of this measure, Brussels intends to combat what it considers unfair competition with the marketing of those small size and value packages.
As detailed by Europa Press, the three-euro rate will be applied to all non-EU sellers registered at the single import window of the European Union for VAT purposes, which In practice, it affects 93% of all electronic commerce flows to the European Union.
Furthermore, it should be noted that the tariff will be levied on each category of item present in the package. Consequently, if a shipment contains one silk garment and two woolthe products will be part of two subcategoriesso that package will be imposed a total rate of six euros.
According to data from the European Commission, In 2024, almost 4.6 billion shipments of low-cost merchandise will be registered. This translated into the entry into Europe of 12 million packages a day exempt from paying tariffs.
Shein’s solution to try to avoid tariffs
Nevertheless, Shein has tried to get ahead upon the entry into force of this new tax, inaugurating last December a warehouse of 740,000 square meters in European territory, specifically in Poland.
That gigantic Shein center would be destined for the company operations in the European marketso it could be a way of try to avoid tariffs. Only time will tell if the move works out well or not for the Chinese company.
