Import Group Pushes for Customs Duties on Chinese Online Retailers Temu and Shein Due to Trade Disputes - Trade group advocates for customs duties on Chinese online stores Temu and Shein
The European Union (EU) is currently investigating Temu, a Chinese-founded online retailer, for suspected violations of EU consumer protection laws and online platform regulations. The investigation comes as the EU Commission seeks to ensure the safety of consumers and level the playing field for European retailers.
The Retail Association in Germany has been resisting Chinese budget retailers for some time, with concerns that platforms like Temu allow the sale of dangerous or non-compliant products and distort the market with aggressive pricing practices and insufficient risk evaluation. These practices, the Retail Association argues, undermine regulatory standards and the business conditions of European retailers.
The EU Commission's investigations against Temu are separate from the tariffs imposed by the USA on smaller parcel shipments from China. In April, the Retail Association, through its representative Genth, filed a complaint against Temu with the Federal Cartel Office in Germany.
In a recent development, the EU Commission concluded that consumers are likely to encounter products that do not comply with consumer protection regulations on Temu. While there are currently no specific EU tariff regulations uniquely targeting Chinese retailer Temu, the Commission is investigating the platform for violations under the Digital Services Act (DSA) related to consumer safety and illegal products. Potential fines could be up to 6% of Temu's global revenue.
To address issues with cheap packages flooding the EU market, mostly from China, the EU is proposing a €2 flat handling fee on each low-value parcel entering through e-commerce platforms. This proposal is aimed at curbing the influx of low-cost goods that has been a source of concern for European retailers.
The Retail Association and other stakeholders are calling for the enforcement of such measures, including tariffs or handling fees, to protect European retailers from unfair competition and to ensure consumer safety. The call is due to a perceived competitive disadvantage for German retailers, who comply with consumer protection and environmental regulations, while their competitors like Temu ignore them.
It's worth noting that the EU has taken initial measures, including abolishing the customs threshold, but these are not considered sufficient. The EU Commission has announced a flat fee of two euros on packages from countries outside the EU sent to private households, but whether this will be enough to address the issues at hand remains to be seen.
In summary, the EU is investigating Temu under the Digital Services Act for inadequate consumer protection and illegal products, and is proposing a €2 handling fee on low-value e-commerce imports to curb the flood of cheap goods. The Retail Association supports these regulatory actions to level the playing field and protect consumers, urging the implementation of such tariffs/fees and enforcement of platform accountability.
- The Retail Association in Germany and other EU stakeholders are advocating for increased cooperation with the countries of Central and Eastern Europe, as they believe that joint enforcement of tariffs or handling fees could help protect European retailers from unfair competition and ensure consumer safety.
- In addition to investigating Temu for violations under the Digital Services Act, the EU Commission is also looking into the industry of online retail, particularly in relation to finance, to ensure compliance with EU consumer protection laws and online platform regulations.
- The EU's proposal for a €2 handling fee on low-value parcel imports from countries outside the EU, such as China, is part of a broader effort to strengthen cooperation with the countries of Eastern Europe, aiming to establish regulatory standards and business conditions that are fair and protective for all parties involved in retail and general-news business.
