Economy
February 5, 2025
Border
Less than
1
min read

EU to Tighten Controls on Shein and Temu

The European Commission is introducing stricter customs controls on online retailers such as Shein and Temu, targeting unsafe and counterfeit products. The EU also plans to phase out tax exemptions on parcels under €150 (£125), which currently allow billions of low-cost imports from China to enter duty-free. The crackdown follows a surge in non-compliant products, raising concerns over consumer safety, environmental impact, and unfair competition for European businesses.
EU to Tighten Controls on Shein and Temu
Appshunter - Unsplash

The European Commission is stepping up efforts to tighten customs checks on goods sold by Chinese fast-fashion giants Shein and Temu, in response to growing concerns over unsafe products flooding the EU market.

Brussels has also urged EU lawmakers to scrap the €150 tax exemption on imported parcels, which has enabled online retailers to avoid import duties and undercut European competitors.

Henna Virkkunen, European Commission Vice-President, highlighted the scale of the issue "We have seen a surge in low-value products sold by non-EU traders, many of which have been found to be unsafe, counterfeited, or even dangerous."

The number of low-value parcels entering the EU tripled from 2022 to 2024, reaching 4.6 billion last year 91% of them from China. This overwhelming volume has put customs authorities under pressure, making it difficult to screen products effectively.

Key Measures Being Proposed

  • Enhanced customs checks: EU authorities will increase inspections and test more products from Shein, Temu, and similar retailers.
  • Scrapping the €150 tax exemption: The Commission is calling for an end to duty-free imports on small parcels, a move that mirrors Donald Trump’s recent US tariff crackdown on Chinese goods.
  • Retailer handling fees: The EU is considering a special charge for online platforms to help cover the cost of customs enforcement.
  • Holding manufacturers accountable: Lawmakers are fast-tracking a bill requiring textile and footwear brands to fund waste collection and treatment for their discarded products.

Consumer Safety Concerns

The European Consumer Organization (BEUC) has raised serious safety issues about products sold on Temu, including:

  • Toys posing choking hazards
  • Electric heaters linked to fire risks
  • Mislabelled sunscreens and cosmetics
  • Crash helmets failing to meet safety standards

Temu is already under legal action from the European Commission, which accused it of failing to prevent the sale of illegal products.

A Shein spokesperson stated that the company takes product safety "very seriously", removing items found to be non-compliant. In 2024 alone, Shein banned 260 sellers from its platform for violations.Temu has not commented on the latest EU crackdown.

With both the US and EU now targeting Shein and Temu, the fast-fashion giants face mounting pressure to comply with international trade and safety regulations.

If the €150 customs exemption is removed, European consumers could see price increases on Chinese imports, while domestic retailers could regain a competitive edge. However, how quickly these measures take effect will depend on the pace of EU legislative approvals.

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