According to the German Retail Association HDE, the federal government favors the EU’s proposed legislation regarding the imposition of customs duties on goods from third countries worth less than 150 euros. Asian online retailers, such as Temu and Shein, which supply consumers across Europe with cheap goods, could be threatened with extinction.

To date, anyone buying certain goods from online retailers based in the Far East with a value of less than 150 euros only must pay import VAT within the EU single market. According to the HDE, this customs exemption and inadequate controls by national customs authorities to ensure compliance with European standards and safety regulations result in a flood of cheap goods into Europe.

Furthermore, it is suspected that the companies in question split deliveries into several parcels to stay below the duty-free threshold. Many consumer protection organizations have been warning for years about the manipulative techniques used by online retailer Temu to entice consumers to make purchases, for example through fake reviews, games of chance and discount countdowns.

While German Finance Minister Christian Lindner supports the planned reorganization of import regulations, according to the HDE trade association, the Ministry of Finance has only stated that it welcomes the EU Commission’s proposals to adapt to the challenges of online trade.

However, it remains to be seen whether the planned change in the law will lead to a shift away from Chinese online retailers, as more and more consumers are turning to Shein and Temu. According to the EU Commission, two billion parcels with a value of less than 150 euros arrived in Europe from third countries last year.

Source: Tagesschau (in German)