Will Shein, Temu, AliExpress and Co have to pay more import duties on their shipments in the future? EU pay? At a meeting in Brussels today (starting at 10:30), Federal Finance Minister Lars Klingbeil and his colleagues from the EU countries will vote on whether taxes should also be applied in future on cheap goods that so far can often be imported into the European Union for free. It remains to be seen whether cheap products will become more expensive.
This federally supported initiative is intended to combat competitive distortions and fraud. This is a very important signal that “we don’t want junk from China and that we are protecting our markets,” said the Vice Chancellor Knife axe recently.
The EU Commission proposes reforms for fairer competition
The project is based on proposals from the European Commission for reform of EU customs regulations. In accordance with the wishes of the Brussels authorities, many goods under 150 euros will be subject to import duties from 2028. This is intended to ensure that all retailers – regardless of location – have the same competitive conditions. Until now, no duty had to be paid if the value of the goods was less than 150 euros.
Additionally, the new requirements are intended to tackle fraud: According to the EU Commission, an estimated 65 percent of parcels sent to the EU intentionally enter an undervalue in customs declarations to claim an exemption. According to the authorities, this is detrimental to EU companies that are unable to compete with lower selling prices – especially small and medium-sized companies.
Additionally, this exemption is an incentive for sellers to split larger orders into smaller packages when shipping to the EU, the Commission said. This further contributes to unequal competitive conditions for EU companies and also causes, among other things, packaging waste.
The “first building block” against the flood of packages
Online trade has led to an exponential increase in shipments of small packages containing low-value goods to the EU in recent years. According to the EU Commission, around twelve million parcels will arrive in the EU every day in 2024 – much more than in the previous two years. From pick up Online shopping portals such as Amazon and Etsy as well as e-commerce giants such as Temu, AliExpress and Shein are likely to be impacted.
According to the German Trade Association, around 400,000 packages are sent from Shein and Temu to German customers every day. Sales of the two portals in Germany will range between 2.7 and 3.3 billion euros in 2024. According to HDE, more than 14 million people in the country shopped at Temu and Shein last year.
The head of the Association of Federal Consumer Organizations, Ramona Pop, called the elimination of duty-free borders the first step in curbing the flood of packages. “In addition, online markets in general must be responsible if they sell products that are unsafe or dangerous,” he continued. A study by Stiftung Warentest recently showed that products in the price segment especially under 150 euros often do not comply with EU regulations. The start of 2028 is also too late, Pop warned.
Removing the 150 euro exclusion limit could make Europe’s internal market fairer, according to a medium-sized business association. This is a step too late, said President Günter Althaus. “Anyone selling in Europe must also comply with European regulations – whether from Cologne or Shenzhen. For reform to be effective, customs offices must be staffed and digitally equipped so that they can truly control the ever-increasing movement of goods,” he warned.
From the online giant Amazon It said it supports the goal of strengthening customs oversight capabilities to combat fraud and non-compliance, thereby ensuring fairer competition in international trade. “We are committed to working with the European Commission and customs authorities in the future to ensure modern, efficient and simplified customs procedures for compliant traders,” the spokesperson said when asked.
In addition to the import duties that have now been decided even for cheap products, the EU Commission is reportedly considering a flat levy rate of up to two euros for related orders in view of the rapid increase in the number of packages from third countries.
The company is popular among consumers
Temu is an online marketplace where many companies sell various items. This Chinese company has been active in Germany since spring 2023 and continues to make a splash with its low prices and high discounts. Products are often shipped directly from the manufacturer to the customer. enter China Shein, a fashion group founded and now based in Singapore, is a manufacturer, retailer and marketplace.
These two shopping portals are very popular with consumers. According to the latest ranking carried out by retail research institute EHI, Shein will already be the seventh largest online store in Germany in 2024. Temu ranks 4th among marketplaces.
Both providers are controversial. Politicians, sales representatives, and consumer advocates complained, among other things, about product quality, lack of control, and unfair competitive conditions. They called for stricter regulations and better protection when shopping online.
In France, Shein has recently received increasing public attention. After it emerged that the online retailer was offering child-like sex dolls and selling weapons, the French government initiated legal proceedings against the platform last week. As a result, the government announced that it would inspect 200,000 Shein packages at Paris airport. Shein announced that he would cooperate with the authorities.
© dpa-infocom, dpa:251113-930-285761/1
