The Commission is implementing measures to address the risks associated with low-value imports sold through non-EU online retailers and marketplaces that feature non-EU vendors. Consequently, packages dispatched from China by online retailers such as Shein and Temu will be subjected to stringent new customs regulations.

The Commission also urges EU lawmakers to phase out the customs duty exemption for parcels under 150 euros, which enables foreign suppliers to sell cheap goods in the EU without paying the tax.

These initiatives are part of the Communication on E-Commerce, titled A Comprehensive EU Toolbox for Safe and Sustainable E-commerce, which the Commission proposed last week. The Commission advocates actions in various domains, including customs and trade, which encompass initiating customs inspections, consumer protection, and enforcing the Digital Services and Digital Markets Acts.

Last year, approximately 4.6 billion low-value shipments, defined as goods valued at no more than 150 euros, entered the EU market, with a significant number found to be non-compliant with European regulations. Over 91% of packages valued at less than 150 euros originated from China, with the majority of these items being produced and dispatched by Temu and Shein.

This rapid increase has raised several concerns, particularly regarding the influx of harmful products into the EU. Additionally, European sellers who adhere to stringent product standards risk being adversely affected by unfair practices and the proliferation of counterfeit goods online.

In the Communication, the Commission outlines the existing tools available to the EU and emphasizes initiatives currently under discussion. Furthermore, it proposes new collaborative actions to tackle issues arising from the influx of unsafe, counterfeit, and otherwise non-compliant or illicit products in the market.

Last October, the Commission initiated legal proceedings against the Chinese online marketplace Temu due to concerns regarding its inability to prevent the sale of illegal products.

On February 6, a request for information (RFI) was sent to Shein under the authority granted by the Digital Services Act (DSA). Please refer to our related article for further details.