The European Union is considering new measures to address the surge in packages arriving from ultra-low-cost online retailers like Shein, Temu, and AliExpress. According to the Financial Times, these platforms benefit from customs exemptions for items under $157, creating safety risks and undercutting EU businesses.
Currently, about 4 billion low-value parcels are expected to enter the EU this year—nearly triple the number in 2022. The volume overwhelms customs officials and allows unsafe products, such as toxic toys and counterfeit goods, to reach consumers unchecked. EU safety authorities reported over 3,400 dangerous products last year, including toys, cosmetics, and clothes.
The European Commission is considering a handling fee on each package or a tax on e-commerce platforms’ revenue to deter cheap imports. While the fee would apply to retailers shipping directly to EU customers, such as Temu and Shein, the revenue tax would require approval from all 27 member states. Critics argue these measures could conflict with international trade laws and harm European businesses.
China also benefits from subsidized shipping, making sending low-cost goods to Europe affordable. While the EU has proposed eliminating the $157 duty-free threshold, officials acknowledge this would increase pressure on already overwhelmed customs services.
The incoming Commission, which began work on December 1, aims to draft a formal proposal by February. A Commission spokesperson told the Financial Times that preventing non-compliant products from entering the EU market will be a key priority. Meanwhile, Temu and Shein have expressed support for fair policies that ensure competition.