Germany intends to advocate for the European Union to introduce custom duties on cheap goods from third countries, amid a fight against distortion of competition.
"We must ensure fair competitive conditions and thus also protect jobs," Finance Minister Lars Klingbeil said on Thursday on the sidelines of a Luxembourg meeting with his EU counterparts, who like Germany, have the euro.
"Those who pay decent wages and abide by the rules must not end up being the losers."
A reform of the customs union is among the topics set to be discussed at this Friday's meeting of EU finance ministers. The reform would see tariffs introduced on previously duty-free, cheap goods from third countries.
The German government intends to make it very clear during the discussions that "junk products" from China, dumping prices, and overcapacity must be discussed, arguing that those practices harm companies in Germany as well as in the rest of Europe.
The European Commission has proposed a reform to phase out exemptions on customs duties for goods valued at less than €150.
The reform is intended to ensure that all retailers – regardless of their location – have the same competitive conditions, with online shopping portals such as Amazon or Etsy in particular being held responsible for paying customs duties and VAT on purchases.
In recent years, online trade has led to an exponential number of deliveries of low-value parcels to the European Union.
The Commission has also put forward plans to introduce a flat-rate levy of up to €2 on small parcels sent from outside the EU directly to customers. The move would likely affect Chinese online retailers Temu and Shein.
According to European Commission figures, around 12 million parcels per day arrived entered the EU market in 2024 – significantly more than in the previous two years.
Temu is an online marketplace where numerous companies sell various goods. The Chinese company has been active in Germany since spring 2023 and frequently attracts attention with its low prices and high discounts. Products are often delivered directly from the manufacturer to the customer.
The fast fashion company Shein, founded in China and now based in Singapore, acts as a manufacturer, retailer, and marketplace. According to trade experts, as a direct supplier, it can quickly respond to fashion trends.
Since Shein ships its products worldwide and operates without physical stores and with minimal inventory, it can keep its prices extremely low.
- EU
- Customs
Source: www.dailyfinland.fi
