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The European Union could soon hit low-priced imported goods with new customs duties, in a move that appears to be targeted at online fast fashion retailers like Shein and Temu.
The EU currently allows imports under €150 ($162) to arrive duty-free. Retailers such as Shein and Temu have taken advantage of these and other so-called "de minimis" rules in the U.K. and U.S. to skirt import duties, by shipping orders in smaller individual lots valued under a certain threshold. The EU's proposed crackdown would do away with the €150 threshold altogether, potentially affecting billions of duty-free items imported into the EU each year. The EU Commission will reportedly discuss the proposal when it meets later in July, according to the Financial Times.
Read More: Shein — Supply Chain Innovator, or Rule-Breaker?
In the U.S., the de minimis ceiling was raised from $200 to $800 in 2016, which Shein, Temu and other overseas retailers have taken advantage of by shipping in large volumes of low-priced, duty-free goods subject to little scrutiny from customs officials. Although the $800 threshold remains in place, U.S. Customs and Border Patrol recently made changes to its de miminis rules to allow for more scrutiny on low-priced shipments, in order to determine whether certain products are manufactured using forced labor. Both Shein and Temu have been tied to allegations of forced labor, low wages, excessive hours and poor working conditions.
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