EU Targets Temu and Shein with Stricter Customs and Consumer Protection Rules

The European Commission has launched investigations into Chinese e-commerce giants Temu and Shein over concerns related to consumer protection, product safety, and misleading promotions. The probes aim to determine whether the companies comply with EU regulations, as officials raise alarms about potentially dangerous goods and deceptive marketing practices.

One of the key issues prompting regulatory scrutiny is the staggering volume of low-value shipments entering the EU. In 2023 alone, more than 4.6 billion small parcels arrived in the bloc, translating to around 12 million packages per day. These shipments, often ordered through Chinese platforms, are currently exempt from customs duties if they are valued under 150 euros. This loophole has encouraged companies to split orders into multiple smaller parcels to avoid paying import duties.

In response, the European Commission is proposing changes to customs regulations, including removing the 150 euros duty exemption. Under the new rules, all shipments—regardless of value—would be subject to customs duties. Additionally, Brussels is considering introducing a customs fee to help finance the screening of billions of incoming parcels, as authorities suspect a significant portion of these products may be counterfeit or unsafe. However, the exact amount of the proposed fee has yet to be determined.

The regulatory push follows months of heightened scrutiny of Chinese e-commerce platforms. In mid-2024, the Commission sent Shein a series of questions as part of its ongoing investigation. The company has stated that it intends to fully cooperate with EU authorities. Meanwhile, a separate probe into Temu has been underway since October 2024, with regulators also examining allegations of false promotions and fabricated product reviews.

Sources:

• bTV
• Club Z
• European Commission