The European Commission is introducing stricter customs checks on products sold by online stores such as Shein and Temu. Additionally, it is pushing for the removal of the duty-free exemption for packages valued under 150 euros. The aim is to filter out dangerous, counterfeit, or unsafe goods, which are increasingly flooding the EU market.
According to the Commission, the majority of billions of low-value products entering the EU do not meet the bloc’s regulations, putting companies that comply with EU rules at a competitive disadvantage compared to foreign sellers who bypass these rules, reports The Guardian.
Henna Virkkunen, Vice-President of the Commission, highlighted the explosive growth of sellers outside the EU on online marketplaces, many of whom offer counterfeit, dangerous, or non-compliant products.
Alarming Statistics
In 2024, 4.6 billion low-value packages entered the EU — equivalent to 12 million shipments daily. This figure is three times higher than in 2022, with over 91% originating from China, where Temu and Shein operate.
Stricter Controls and the Removal of Duty-Free Exemptions?
A report published by the Commission on Wednesday indicates that the EU will enhance cooperation with national customs authorities to implement targeted inspections and stricter market surveillance to detect dangerous products.
The Commission is also urging EU lawmakers to remove the duty-free exemption for imported goods under 150 euros, which currently allows foreign sellers to trade in the EU without paying taxes.
Maroš Šefčovič, the EU Trade Commissioner, stated that the explosive growth of e-commerce places immense pressure on customs authorities, making it essential to finalize reforms for the EU Customs Union. He also proposed imposing handling fees on online retailers to cover inspection costs.
Environmental Concerns
The Commission also cites environmental concerns. Cheap, mass-produced goods cause significant pollution during manufacturing and transport and present challenges for waste management systems.
EU policymakers aim to require textile and footwear companies to pay fees for waste management related to their products.
Growing Investigations Against Temu and Shein
In October 2024, the EU launched legal proceedings against Temu, criticizing its failure to prevent the sale of illegal products.
The European Consumer Organisation (BEUC) also warned about Temu’s dangerous products, identifying several problematic items, including:
- Children’s toys posing choking hazards
- Electric heaters with risks of fire and electric shock
- Sunscreens and cosmetics with false or improper labeling
- Helmets providing inadequate protection
Temu responded by stating it takes complaints seriously and thoroughly investigates issues.
Shein issued a similar statement, asserting that it “takes product safety very seriously” and immediately removes problematic items from its platform. The company added that in 2024, it banned over 260 sellers for rule violations.
Trump’s Tariffs and China’s Response
The EU’s crackdown follows measures introduced in the United States. Donald Trump imposed a 10% tariff on Chinese goods, closing a loophole that allowed duty-free imports for items valued under $800 (638 pounds).
The decision sparked outrage in Beijing, prompting the US Postal Service (USPS) to temporarily suspend package deliveries from China and Hong Kong, though the decision was later reversed.
End of Bargains?
Shein and Temu are immensely popular in Europe, but EU leaders have sent a clear message: the rules apply to everyone. New customs checks and potential fees could significantly impede the influx of cheap products.
In the coming months, it will become clear whether EU lawmakers will support the removal of duty-free exemptions and what additional steps they will take to regulate online marketplaces.
