Plans of the EU
Parish fee for Temu and Shein-the end of the cheap shopping?
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Cheap goods from China could soon cost more: the EU wants to proceed with a parcel fee against shopping portals such as Temu and Shein. The United States is already one step further.
Anyone who thought that Amazon was the summit of online billig shopping mentality has been taught a better one in recent years. Online retailers such as Temu and Shein flood the European market with their cheap goods from China at a rapidly increasing pace. Electronics, clothing, household items – everything costs only a few euros and is delivered directly from China to the front door.
Not everyone likes that. While some customers are happy about the ridiculous prices, consumer advocates warn of inferior quality. And European competitors and authorities have great doubts on how legally the whole China business is. Because because the goods are delivered directly free, it is difficult to control, to what extent fake or dangerous products are sent and whether customs regulations are observed.
Does the parcel fee stop Temu and Shein?
The European Union now wants to change that. The EU Commission proposes concrete steps to the Member States and the EU Parliament to slow down the uncontrolled business model of the China portals. In addition to sharper controls, the draft, which first reported the “Handelsblatt”, also provides for “to collect a processing fee for articles of electronic trade”, which are imported into individual packages.
The parcel fee is intended to compensate the customs authorities of the EU countries for the higher costs that “arise when the goods are properly checked to consumers”. In fact, it is currently the case that customs is impossible to check them effectively because of the sheer.
Gap in the customs law
The Chinese have also been using a gap in customs laws so far. Packages with a value of less than 150 euros are freed from customs levies. The regulation comes from a time when such small parcels were primarily sent between private individuals, while commercial goods landed in large containers at the harbor, where they could then be controlled by customs.
But today the reality looks different: In 2024, according to the EU Commission, more than four billion shipments with a value of goods were less than 150 euros from China-more than twice as much in the previous year. The China goods made up 91 percent of all online shopping imports below the duty-free limit. It cannot be said without control whether the value of all these packages does not actually exceed the 150 euros. In view of the cheap prices when ordering, private individuals should hardly exceed resellers when ordering. The EU Commission would therefore like to abolish the duty-free limit in the course of the proposed reform. The proposal has been around for a long time, so far the national governments have not been willing to do so.
US post stops transporting China packages
In the United States, there is already one step further: US President Donald Trump quickly ended the duty-free for packages from China with little value of goods. So far, packages have been sent to private individuals up to a value of $ 800 duty. At the end of his term, Joe Biden had proposed to delete the exception, Trump has now implemented it as part of his customs offensive.
The measure had a direct effect: the US post stated on Wednesday night not to promote any parcels from China and Hong Kong for the time being. The company takes time to adjust to the new rule, but letters and small packages from China would be transported further. Experts assume that Temu and Shein shipments will now become more expensive in the USA-but they could still be cheaper than those of US companies.
Cheap goods should be more expensive
It is unclear whether the EU countries to delete duty-free for cheap goods or the proposed parcel fee. In any case, the EU Commission’s proposals would also make China goods more expensive in this country. Shipping some cheap products would then no longer be worth it. However, the parcel fee – like tightened customs regulations – would also have to be practically enforced. There is already a suspicion that the Chinese companies do not adhere to the applicable laws.
Against the cheap fashion group Shein, the EU Commission therefore initiated an investigation on Wednesday at the same time as its fee plans for unfair business practices. The Commission investigates complaints from numerous countries that Shein does not adhere to European consumer protection laws, it said.
In Germany, the Federal Consumer Center (VZBV) had already warned Shein last year because it violated the EU’s digital services. Among other things, consumer advocates denounced manipulative discount promises, inconsistencies in star ratings and greenwashing.
The VZBV also warned Temu due to inadmissible discount and advertising promises, the company made a declaration of injunction. Nevertheless, the consumer advice centers continue to warn against shopping at Temu. They report customer complaints about poor quality, non -preserved programs and difficult to reach customer service. In addition, consumer advocates advise not to go in advance and to find out about the customs regulations. “Otherwise, additional taxes and customs fees can come to you.”
with agency material
Source: Stern