EU cracks down on dangerous goods from Shein and Temu amid surge in low-value imports

BRUSSELS: The European Union is set to impose stricter controls on goods sent from China by online retailers such as Shein and Temu, as part of a crackdown on “dangerous products” flooding the EU market.

The European Commission has expressed concerns over the surge in low-value products being sold online, with over 4.6 billion parcels entering the EU last year. The majority of these parcels, more than 91 percent, came from China, where Temu and Shein manufacture and dispatch many of their goods.

The Commission has stated that many of these low-value products do not comply with EU laws, and are instead sold as unsafe, counterfeit, or even hazardous. The officials have urged EU lawmakers to phase out the exemption on customs duties for parcels valued under €150, which allows foreign suppliers to sell cheap goods in the EU without paying tax.

The EU is working with national customs authorities to strengthen market surveillance and testing, and to focus on identifying and stopping the sale of unsafe products online. The Commission is also calling for the imposition of a handling fee on retailers to cover the soaring costs of supervising compliance with EU rules.

The EU executive is also concerned about the environmental impact of the flood of cheap imports, from pollution during production and transport to the challenges posed to European recycling authorities. The Commission is urging lawmakers to speed up work on a draft law that would require manufacturers of textiles and footwear to pay fees to fund rubbish collection and treatment.

Also read: UK lawmakers summon Shein, Temu for questioning over labour practices

The crackdown comes after the US imposed tariffs on Chinese goods, which closed a loophole that allowed China’s fast-fashion companies to ship goods under $800 duty-free into the US. The EU action is part of a growing global effort to tackle the issue of “fast fashion” and the sale of hazardous goods online.

Consumer groups have raised alarm over the sale of dangerous products by Temu, including toys that pose a choking hazard and electric heaters that risk causing fires. The company has responded to claims, saying it takes product safety “very seriously” and removes products from its site when learning of any issues while they are investigated.

Shein has also responded, saying it takes product safety seriously and removes products from its site when learning of any claims or issues. The company claims to have removed over 260 marketplace sellers from its site due to non-compliance.

The European Commission is pushing for a comprehensive approach to tackle the issue of low-value e-commerce imports, which is estimated to be increasing pressure on customs authorities and posing environmental challenges. The Commission is urging lawmakers to act swiftly to finalize the customs union reform and introduce measures to regulate the sale of hazardous goods online.