Temu, Shein & Co.: Why 3 Euros of EU Customs Won't Stop the Flood of Cheap Packages

TVS News AI, editorially supervised, presents Temu, Shein & Co.: Why 3 Euros of EU Customs Won't Stop the Flood of Cheap Packages.

The EU wants to rein in the cheap boom from China with a customs fee of three euros per package. But this plan is meeting sharp criticism: The German Trade Association (HDE) considers the fee too low and warns that providers like Temu and Shein would simply adapt.

The planned customs fee of three euros is intended to curb the number of cheap packages from China. This is precisely where the HDE sees the problem: three euros are barely noticeable for many orders. Especially for higher-priced items, the fee carries hardly any weight proportionally. Providers could also easily pass the fee on to buyers – without any change in the volume of shipments.

How Temu and Shein could react to the EU customs fee

Experience with previous regulations shows a recurring pattern, according to the HDE: when the framework conditions change, Chinese online platforms adapt their prices, logistics, and product range. For instance, they might stockpile more goods in European warehouses to circumvent the customs fee – or restructure their shipping so the new charge becomes economically meaningless.

German retailers see this as the real distortion of competition: while brick-and-mortar stores and European online retailers bear taxes, wages, and regulations locally, providers like Temu and Shein could flexibly adapt their business models to new rules – and thus remain at an advantage.

What the customs plans mean for consumers

Anyone who continues to order from Temu, Shein, or other Chinese platforms will likely feel the surcharge directly in their shopping cart. Three euros more per package makes a difference for cheap orders, but hardly matters for larger shipments. Whether the customs fee will actually lead to fewer orders is doubtful – and that's exactly what the HDE questions.

With a customs fee of three euros, the EU wants to curb the number of cheap packages from China. Too little, says the HDE trade association, warning: Temu and Co. will adapt.

You can read more on the topic in our other articles on e-commerce, customs rules, and the consequences for trade in Germany.