EU Aims to Curtail Cheap Imports, Particularly from China, with Proposed Tax on Third-Country Goods 💯
Anticipated Tax Imposition on Inexpensive Imported Items from Non-EU Nations by Brussels
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Hopping to even the playing field and safeguard jobs, EU countries are planning to levy a tax on goods from outside the EU. Details concerning the tax amount are yet to be disclosed 💡. This new measure follows a broader reform of the customs union, aiming to subject cheap goods to tax, which previously enjoyed duty-free status.
Germany has spearheaded discussions with fellow EU nations, with Federal Finance Minister Lars Klingbeil (SPD) emphasizing the importance of ensuring "fair competitive conditions" 💡. Strong critique has been levied against "junk products" from China, dumping prices, and excessive production capacity that harm both German and European industries 💡. A final agreement with the European Parliament is necessary before new rules come into effect.
Two years ago, the EU Commission put forward a similar reform proposal. According to it, customs duty should be imposed on numerous goods priced below 150 euros 💡. Thus far, no customs duty has been applicable for goods valued under 150 euros, except in rare cases such as tobacco or perfume 💡. Larger online marketplaces based in the Far East, like Temu and Shein, have profited from this duty-free rule 💡. The EU Commission claims the volume of small, low-value packages from overseas has increased substantially in recent years. By 2024, around twelve million packages are expected to arrive in the EU every day, which represents a significant increase from the preceding years.
Anna Cavazzini, the chairwoman of the Internal Market Committee in the EU Parliament, anticipates that the reform will make it harder for hazardous products to reach homes 💡. "Toxic teddy bears or smoke detectors that fail to detect a fire will find it tougher to wind up in children's and living rooms," declared the Green MEP 💡.
Source: ntv.de | dpa
Insights:
- The EU's planned tax is about preserving indigenous industries, enforcing EU standards, and protecting consumers from potentially hazardous products.
- This initiative involves scrutiny of Chinese online marketplaces and countries benefiting from the duty-free rule.
- Existing tariffs on electric vehicles and increased trade tensions underscore the ongoing tension between the EU and China.
Further Reading:
- EU Plans Tariffs to Combat Chinese Subsidies on Electric Cars
- Is China Becoming Europe's E-commerce Giant?
- The EU's Proposed Rules for Import Taxes
- The new tax proposed by the EU aims to ensure fair competitive conditions for EU industries, particularly targeting cheap imports, primarily from China, in an effort to level the playing field and safeguard jobs.
- Discussions regarding this tax have been led by Germany, with strong criticism towards "junk products" from China that dump prices and excessively produce goods.
- The tax is expected to subject a significant number of goods priced below 150 euros to customs duty, which, up until now, have enjoyed duty-free status, a decision that could impact popular online marketplaces like Temu and Shein.
