End of cheap orders from China: European Commission announces introduction of fees

(Patria) - The European Commission announced yesterday that it intends to introduce fees for packages that, through mainly Chinese online stores Temu and Shein, are flooding the European market with cheap, often counterfeit goods.

Chinese platforms Temu and Shein exploit legal loopholes and deliver packages to Europe valued under 150 euros, which are exempt from customs duties.

Customs officials are overwhelmed due to the flood of packages entering the EU. Funds from package fees would be directed towards financing intensified customs controls against illegal products.

It is also proposed to abolish customs exemptions for packages valued under 150 euros and introduce simplified tariff procedures for low-value shipments.

According to Commission Executive Vice-President Henne Virkkunen, 91 percent of small packages come from China via stores like Temu and Shein.

- We have established that numerous products do not comply with European regulations, that they are dangerous. This flood of imports puts significant pressure on the competent authorities in the member states, especially customs officers - says Virkkunen.

Therefore, online platforms will in the future have to verify whether the products offered on their platforms are legal and comply with EU safety standards.

"Numerous products entering the European market from outside the EU in this way pose a risk to health and safety, are unsustainable from an environmental and climate perspective, and create unfair market competition for EU businesses that comply with regulations," the Commission states.

In recent years, there has been a sharp increase in the number of such products entering the EU, with approximately 4.6 billion low-value shipments entering the EU market in 2024.

In May 2023, the Commission proposed a reform of the customs union, which, among other things, envisages the introduction of duties for goods valued below 150 euros.

Negotiations are underway between the European Parliament and the Council on the final text of this law.

The Commission calls on both legislative bodies to reach an agreement as soon as possible. According to the Commission's proposal, the reform should be implemented starting in 2028.