The Financial Times reported on Wednesday that the European Union is drafting plans to levy customs tariffs on inexpensive items purchased from Chinese online merchants including Temu, Shein, and AliExpress. The story cited three people who were briefed on the topic.

The article stated that later this month, the European Commission would propose eliminating the existing 150 euros ($161) barrier that allows goods to be purchased duty-free.

Packages worth less than 150 euros that are ordered online from a non-EU nation are now exempt from customs taxes.

The Commission claims that “the sheer volumes of e-commerce are testing customs’ limits” and that two billion packages with reported values of less than 150 euros came in the EU from outside in 2023.

According to the FT article, the EU has been debating lifting the cap as part of a customs reform initiative put up by the Commission in May 2023. However, in order to combat the influx of low-cost imports, it may now try to expedite its approval.

While the European Union and AliExpress parent company Alibaba (9988.HK), opens new tab, Temu, and a spokeswoman for Shein stated, “We are fully supportive of efforts by lawmakers to reform the de minimis provision,” Reuters was not immediately contacted for comment.

Shein and Temu’s detractors in the US have already voiced their displeasure, claiming that they take advantage of import tax exemptions to undercut competitors and evade goods inspections by customs.

(Adapted from ThePrint.in)