Turkey is the latest country to raise customs duty rates and reduce de minimis in hopes of giving local e-tailers a fighting chance against the likes of Shein and Temu.
President Recep Tayyip Erdoğan signed the new decision, published in the Official Gazette on Aug. 6, drastically increasing taxes on products ordered from foreign websites.
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The amendment to certain articles of Law No. 4458 on Customs follows recent hints from Turkey’s trade minister, Omer Bolat, about upcoming regulations vis-à-vis online shopping through platforms like these Chinese-owned options, as made popular by AliExpress.
The overseas fast cargo shopping limit has been reduced from 150 euros ($164) to 30 euros ($33), effective as of Aug. 21. The import duty on European packages will increase to 30 percent, compared to the current 18 percent. The tax rate on goods originating from outside the European Union was previously at 30 percent but has now doubled to 60 percent. This applies to goods arriving by mail or express cargo to an individual in Turkey.
In addition to the rate changes and allowance reduction, an extra tax will be applied in an attempt to support local businesses and protect domestic industries. If the goods fall under the category stipulated in the Special Consumption Tax Law (namely luxury goods), an extra 20 percent fine will be tacked on.
For items over 30 euros ($33) but under 1,500 euros ($1,643) and not in commercial quantities, all customs procedures and declarations must be followed, according to the amendment.
The news comes a month after Shein’s plans to source its clothes for the European market from Turkey in an attempt to reduce criticism of its use of Chinese labor were revealed by UK publication This is Money.
Turkey isn’t alone in its concern about how these imports impact local industry.
Earlier this month, a bipartisan group of congressional lawmakers introduced legislation to reform the de minimis trade provision and prevent cheap, illicitly produced goods from entering the American market.
Dubbed the Fighting Illicit Goods, Helping Trustworthy Importers, and Netting Gains (FIGHTING) for America Act, the proposed law would help “empower” Customs and Border Protection (CBP) to curb the influx of prohibited products by barring certain categories of products from using de minimis. This includes those designated as “import-sensitive” under the Generalized System of Preferences (GSP)—including textiles, apparel and leather goods.
Ideally, by tightening the import requirements for low-value shipments, the FIGHTING Act would kneecap Shein and Temu’s access to American consumers.
Last month, the European Commission was assembling a plan to impose customs duties on low-priced imports from online retailers, ditching the current duty-free threshold of 150 euros ($164). In June, South Africa closed its de minimis “loophole,” with small overseas shipments valued at under 500 South African rands ($27) now taxed at the same rate as higher ones.
Neither Shein nor Temu responded to Sourcing Journal’s request for comment.
