The German government apparently wants to support the reorganization of EU import regulations. Asian online retailers such as Shein and Temu could be particularly affected by this.
Will business models like those of the Asian online retailers Temu and Shein soon be outdated? According to the HDE trade association, the federal government wants to support a planned reorganization of the European Union’s import regulations. Apparently the Federal Ministry of Finance supports abolishing the 150 euro duty-free limit in the EU.
For packages with a value of less than 150 euros, no customs duties currently have to be paid on import – cheap retailers from the Far East such as Temu and Shein benefit from this. Federal Finance Minister Christian Lindner has now signaled that Germany will support an end to the 150 euro rule at European level, according to the HDE. The Finance Ministry said it did not want to comment on specific cases, but generally welcomed the fact that the EU Commission had put forward proposals to adapt customs regulations to the challenges of online trading.
Reform plans for import regulations
The HDE has long criticized the customs regulation because, in its opinion, it supports a flood of cheap goods on the way to Europe. The association also criticizes the fact that numerous goods cannot be adequately checked by customs authorities to ensure compliance with European standards.
At the European level, too, people now want to counter the flood of packages from Asia more decisively: the EU Commission put corresponding reform plans on the table in May 2023. The reason: The current 150 euro limit could also lead to online retailers splitting deliveries in order to stay below the threshold. In around 65 percent of the packages, the value may have been intentionally under-declared. Shein and Temu said they reported the correct value of goods and did not break down shipments.
Popularity among consumers remains unbroken
According to the EU Commission, around two billion packages with a declared value of less than 150 euros each reached Europe from third countries last year. Consumers from Germany are also increasingly shopping with Asian online retailers: According to a consumer survey by the Cologne-based retail research institute IFH, Shein has managed to more than double the frequency of orders compared to 2023. 22 percent shop there at least once a month.
“More and more people are using Temu and Shein. This is mainly due to the low prices,” said IFH managing director Kai Hudetz. Two thirds specifically search for bargains on the platforms. One in two people say they buy products there that they cannot otherwise afford. “People in Germany are very focused on prices. Without inflation and uncertainty, Temu and Shein would not have grown so quickly in this country,” said Hudetz.
It is questionable what effects a change to the import regulations in the EU would have if the Commission were actually able to enforce them. Temu emphasized that its growth does not depend on regulations on duty-free import of goods. Rather, this results from efficient supply chains. The online retailer Shein, which is currently seeking a stock exchange listing in London, said the company adheres to all rules and laws – including with regard to customs regulations. Shein’s pricing structures are not based on EU customs regulations.