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Critics of Shein and Temu in the United States have already complained that they use an import tax exemption there to undercut rivals and avoid customs inspections of their products. Germany has recently revealed that it backs the scrapping of some EU import taxes, which could potentially see the winding up of tax breaks for cheap packages. This is because currently, parcels bought online from a country outside the EU are exempt from custom duties if their total value is under €150. These tax breaks have been crucial for Chinese online retailers such as Temu and Shein, allowing them to charge …

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