EU Member States Propose Tax on Low-Cost Imports

In response to the overwhelming influx of inexpensive products from outside the European Union, EU member states are considering the implementation of a tax on packages arriving from these countries. The specific rate of this tax has yet to be determined. This proposal is part of a broader reform of the EU's customs union, which aims to impose duties on previously exempt, low-cost goods from non-EU nations. Calls for action against the influx of cheap imports, particularly in the fast fashion sector, have been echoed from various Austrian stakeholders.

The Austrian Trade Association and the Chamber of Labor have consistently raised concerns about the adverse effects associated with online shopping from platforms like Temu and Shein. They have advocated for the introduction of customs duties starting from the very first euro spent on such purchases. Approximately two years ago, the EU Commission introduced a reform proposal that seeks to make numerous goods valued under 150 euros subject to customs duties. Currently, items valued below this threshold are exempt from customs, with only a few exceptions, such as tobacco and perfume. This regulatory gap has allowed significant online marketplaces from Asia, including Temu and Shein, to benefit from these tax exemptions.

The rise of online shopping has led to a substantial increase in the number of small, low-cost packages arriving in the EU. According to estimates from the EU Commission, around twelve million packages entered the EU daily in 2024, a notable increase from the previous two years.

Anna Cavazzini, the chair of the Internal Market Committee in the EU Parliament, expressed optimism that the customs reforms would enhance the ability of authorities to monitor and regulate incoming goods more effectively. She noted that this could help prevent unsafe items, such as harmful toys or faulty smoke detectors, from reaching consumers.

As discussions continue, stakeholders emphasize the need for a balanced approach that addresses consumer safety while ensuring fair competition for local businesses.