Parcels shipped from China by online retailers like Shein and Temu will now be subject to stricter customs controls as part of the European Commission’s effort to curb the influx of “dangerous products” into the EU market.
Officials in Brussels have also called on EU lawmakers to eliminate the exemption on customs duties for parcels valued under €150 (£125), which currently allows foreign sellers to ship inexpensive goods into the bloc without paying taxes.
The commission stated that many of the billions of low-value products entering the EU each year do not comply with its regulations, putting European companies that follow the rules at a disadvantage against competitors selling unsafe or counterfeit items.
“We have seen a surge in low-value products sold by non-EU traders sold by online marketplaces,” said Henna Virkkunen, the commission’s vice-president. “Many of those products, they have been found to be unsafe, counterfeited or even dangerous, so they are not often meeting our standards.”
In 2023, 4.6 billion low-value parcels entered the EU—equivalent to 12 million per day—tripling the amount from 2022. More than 91% of parcels valued under €150 originated from China, where companies like Temu and Shein manufacture and ship most of their products.
A policy paper released by the commission on Wednesday outlined plans to collaborate with customs authorities across the EU’s 27 member states to crack down on unsafe products sold online. The strategy includes enhanced market surveillance and increased product testing.
The rise in low-cost online purchases is placing greater strain on customs authorities, the commission noted. It urged EU lawmakers—both member states and MEPs—to eliminate the tax exemption on imports under €150, in line with proposals first introduced in May 2023.
Temu and Shein
“In response to the surge of low-value e-commerce imports, it is critical to finalise our customs union reform,” said Maroš Šefčovič, the European commissioner for trade. He also suggested imposing a handling fee on retailers to offset the growing costs of ensuring compliance with EU regulations.
The EU executive is also concerned about the environmental impact of the surge in cheap imports, citing pollution from production and transportation as well as challenges in recycling low-quality or hazardous materials.
Officials urged lawmakers to expedite a proposed law that would require textile and footwear manufacturers to contribute financially to waste collection and disposal efforts.
This crackdown follows the recent implementation of Donald Trump’s 10% tariffs on Chinese goods, which closed a loophole that had previously allowed Chinese fast-fashion companies to ship products worth less than $800 (£638) into the U.S. duty-free.
The move has sparked tensions with Beijing. On Tuesday, the U.S. Postal Service announced it was halting parcel shipments from China and Hong Kong, without providing a reason. However, on Wednesday, it reversed the decision and resumed deliveries.
In October, the European Commission launched legal action against Temu, citing concerns that the Chinese online marketplace was failing to prevent the sale of illegal products. Since its European launch in 2023, Temu—known for its tagline “shop like a billionaire” and for selling a wide range of low-cost items—has experienced rapid growth.
The pan-European consumer group BEUC has issued warnings about unsafe products available on Temu. Its investigations uncovered children’s toys posing choking hazards, electric heaters with fire and shock risks, mislabelled sunscreens and cosmetics, and crash helmets offering insufficient protection.
Temu previously responded to BEUC’s complaint, stating that it took the matter “very seriously” and would “study it thoroughly.”
Agustín Reyna, director general of BEUC, emphasized the need for equal enforcement of consumer protections. “If the EU is serious about protecting consumers and hitting the road to decarbonisation, it must ensure everybody plays by the same rules,” he said.
A Shein spokesperson affirmed the company’s commitment to product safety, stating that it promptly removes items from its platform when alerted to potential concerns.
“Shein’s vendors must comply with the code of conduct that we have put in place … and must also abide by the relevant laws and regulations in the countries we operate in,” the spokesperson said.
The company further stated that in 2024, it had already removed over 260 marketplace sellers from its site due to non-compliance.
