Will Shein, Temu, AliExpress and Co have to pay more customs duties on their shipments to the EU in the future? At a meeting in Brussels today (from 10:30 a.m.), Federal Finance Minister Lars Klingbeil and his counterparts from the EU countries will vote on whether taxes should also apply in the future to cheap goods that have so far often been able to be imported into the European Union free of charge. It remains to be seen whether cheap products will become more expensive as a result.
The initiative supported by the federal government is intended to combat distortion of competition and fraud. It is a very important signal that “we don’t want junk goods from China and that we protect our markets,” said Vice Chancellor Klingbeil recently.
The EU Commission proposed reform for fairer competition
The project is based on a proposal from the European Commission for a reform of the EU’s customs rules. According to the will of the Brussels authorities, numerous goods under 150 euros will be subject to customs duties from 2028. This is intended to ensure that all retailers – regardless of their location – have the same competitive conditions. To date, no duty has to be paid if the value of the goods is less than 150 euros.
In addition, the new requirements are intended to address fraud: According to the EU Commission, it is estimated that 65 percent of parcels sent to the EU deliberately enter a value that is too low in the customs declaration in order to claim the exemption. According to the authority, this disadvantages EU companies that cannot compete with the correspondingly lower sales prices – especially small and medium-sized companies.
In addition, the 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.
“First building block” against a flood of packets
Online trading has led to an exponential increase in deliveries of small parcels of low-value goods to the EU in recent years. According to the EU Commission, around twelve million packages arrived in the EU every day in 2024 – significantly more than in the previous two years. Online shopping portals such as Amazon and Etsy as well as e-commerce giants such as Temu, AliExpress and Shein are likely to be affected by the levy.
According to the German Trade Association, around 400,000 packages are sent from Shein and Temu to German customers every day. The sales of the two portals in Germany were between 2.7 and 3.3 billion euros in 2024. According to HDE, more than 14 million people in this country shopped at Temu and Shein last year.
The head of the Federal Association of Consumer Organizations, Ramona Pop, calls the abolition of the duty-free border a first step in curbing the flood of packages. “In addition, online marketplaces must generally be held responsible if they sell unsafe or dangerous products,” she continued. A study by Stiftung Warentest recently showed that products in the price segment under 150 euros in particular often do not comply with EU regulations. The start from 2028 is also too late, warned Pop.
The abolition of the 150 euro exemption limit could make the European internal market noticeably fairer, according to the medium-sized business association. It is an overdue step, said President Günter Althaus. “Anyone who sells in Europe must also adhere to European rules – regardless of whether they come from Cologne or Shenzhen. In order for the reform to have its effect, the customs offices must be staffed and digitally equipped so that they can actually control the growing movement of goods,” he warns.
Online giant Amazon says it supports the goal of strengthening customs enforcement capabilities to combat fraud and non-compliance, thereby ensuring a fairer playing field in international trade. “We are committed to working with the European Commission and the customs authorities in the future to ensure modern, efficient and simplified customs procedures for compliant traders,” said a spokeswoman when asked.
In addition to the customs duty that has now been decided on even for cheap products, the EU Commission is reportedly considering a flat-rate levy of up to two euros on corresponding orders in view of the rapidly increasing number of parcels from third countries.
Corporations popular with consumers
Temu is an online marketplace where numerous companies sell various goods. The Chinese company has been active in Germany since spring 2023 and continues to cause a stir with its low prices and high discounts. Products are often delivered directly from the manufacturer to the customer. The fashion group Shein, founded in China and now based in Singapore, is both a manufacturer, retailer and marketplace.
The two shopping portals are very popular with consumers. According to a current ranking by the retail research institute EHI, Shein was already the seventh largest online shop in Germany in 2024. Temu ranks 4th among marketplaces.
Both providers are controversial. Politicians, sales representatives and consumer advocates complain, among other things, about product quality, a lack of controls and unfair competition conditions. They are calling for stricter regulation and better protection when shopping online.
In France, Shein has recently come under increasing public scrutiny. After it became known that the online retailer was offering sex dolls with a child-like appearance and was selling weapons, the French government initiated proceedings against the platform last week. As a result, the government announced that it would check 200,000 Shein packages at Paris airport. Shein announced that he would cooperate with the authorities.