Europe wants to restrict “low value” packages from abroad: Shein and Temu, the most affected

The European Commission has announced new measures to mitigate the risks arising from the massive importation of low-value products from non-European Union retailers and marketplaces. These actions are part of the strategy ‘A Comprehensive EU Toolbox for Safe and Sustainable E-commerce’, aimed at ensuring safe and sustainable eCommerce in the EU.

Risk of increased imports

According to the Commission’s data, in 2024 there were 4,600 million low-value shipments (products costing less than 150 euros) entering the European market, representing 12 million packages daily. This figure doubles that of 2023 and triples the 2022 figure, raising concerns about the entry of non-compliant products with European legislation.

“In 2024, 91% of all eCommerce shipments valued up to 150 euros entering the EU were from China, and their volume more than doubled from 2023 to 2024: from 1,900 million to 4,170 million items. This increase coincides with the extremely rapid growth of certain eCommerce platforms. Temu and Shein, in particular, have grown exponentially in the EU market, reaching over 75 million users in the EU in just a few months in 2024”, the report explains.

According to the detailed report published by the Commission, a significant portion of the imported products do not comply with EU regulations, posing risks to consumer health and safety. The main issues identified are:

• Dangerous products that do not meet safety standards.
• Unfair competition for European retailers required to adhere to strict quality standards. European businesses comply with stringent environmental and safety regulations, whereas some foreign sellers evade these responsibilities, creating an unequal situation.
• Environmental impact due to the high volume of shipments and transportation. The model of massive individual shipments increases the carbon footprint and waste generation, especially with low-quality and hard-to-recycle products.

The Commission aims to ensure that European consumers can enjoy safe eCommerce, with access to affordable and quality products, while protecting the competitiveness of local companies.

Key customs and trade reforms

To address these challenges, the Commission has proposed new joint actions focused on strengthening import controls. With this package of measures, the EU aims to balance the benefits of digital commerce with the need to ensure a safe, sustainable, and competitive market for consumers and businesses:

• The aim is to eliminate customs duty exemptions for packages under 150 euros and improve oversight through data sharing and risk assessment. This is a really tough measure for all those online operators whose business relies on selling large volumes of low-value, low-margin imported products. Until now, their prices did not have to reflect these customs costs, allowing them to compete on favorable terms.
• Also under consideration is the imposition of a non-discriminatory handling fee for eCommerce shipments, a possible additional charge that could be imposed on all packages imported directly by consumers from outside the EU, regardless of origin or value. Customs supervision incurs high administrative costs for the authorities responsible for monitoring the safety and regulatory compliance of imported products. The term “non-discriminatory” indicates that this fee would apply to all imported eCommerce shipments, regardless of the country of origin, retailer, or value.
• Coordinated inspections: Joint inspections will be conducted between customs and market surveillance authorities to detect non-compliant products, remove them from the market, and collect data to improve risk analysis.
• Consumer Protection in Marketplaces: Strengthening the enforcement of key regulations such as the Digital Services Act (DSA), the Digital Markets Act (DMA), and the General Product Safety Regulation.
• Implementing the Digital Product Passport, which will allow tracking the origin and regulatory compliance of products and new artificial intelligence tools to detect potentially dangerous products.
• Promoting the adoption of the Eco-design Regulation for Sustainable Products and amending the Waste Directive to reduce the environmental footprint of eCommerce.
• Launching awareness campaigns on consumer rights and grievance mechanisms.
• Strengthening collaboration with trade partners and evaluating cases of dumping and subsidies that may affect the competitiveness of European companies.

The Shein case and upcoming actions

Additionally, the Commission and the Consumer Protection Cooperation Network (CPC) have notified Shein of the start of a coordinated supervisory action to check if it has engaged in unfair practices affecting competition. Within one year, the Commission will assess the effects of the implemented measures and publish a report with the findings. If deemed necessary, new proposals may be adopted to strengthen the enforcement of EU rules.

As we reported months ago, in 2024, the Commission had already flagged the activity of this emerging online fashion giant. At that time, Shein had been designated as a “Very Large Online Platform” (VLOP) under the Digital Services Act (DSA). This classification is because Shein surpasses 45 million monthly users in the European Union, the threshold established by the DSA for this category. For Shein, this implies a greater responsibility in monitoring its product catalog and protecting European consumer rights. The company must quickly adapt to these regulations to maintain its position in the European market.

Image: Flux Schnell