EU will introduce new customs rules that eliminate tax-free imports on small parcels to curb the dominance of low-cost Chinese platforms such as Temu and Shein. Danish industry groups support the move but doubt it will make a big difference in prices.
All Small Parcels to Face Customs Duties
Soon, all goods entering the European Union will be subject to customs procedures, even those worth less than 150 euros, or about 1,100 Danish kroner. The change means that millions of small parcels from Chinese platforms like Temu and Shein will no longer enter Europe tax-free. EU finance and economy ministers agreed on the measure this week, aiming to create fairer conditions for European companies competing with Asian e-commerce giants.
The decision is part of a broader effort to balance trade fairness. According to Danish officials, low-cost imports from countries like China distort the market and disadvantage local producers.
Small Price Impact but Symbolic Shift
Industry organizations such as the Confederation of Danish Industry (DI) and the Danish Chamber of Commerce welcome the decision. They say it sends the right signal, but the price impact for consumers will likely be minimal. Current tariff rates are low: 0% for cosmetics, 4.7% for toys, and 12% for knitwear. For example, a toy costing 10 kroner would increase by only 47 øre.
Still, industry leaders point out that the issue is not just about price. Many products shipped through Temu and Shein fail to meet European safety and environmental standards. Several consumer safety tests have shown that two out of three items bought from these platforms do not comply with EU regulations.
Concerns About Product Safety and Compliance
European firms spend large sums to ensure their imports meet EU requirements, while Chinese platforms often skip this process. Danish trade groups argue that customs checks will allow random inspections, making sure that goods entering the EU comply with safety rules. If violations continue, companies could face major fines, estimated at around six percent of their global turnover.
At the same time, research from Sweden’s retail association shows that checking safety and legal compliance adds about 40% to retail costs for European sellers. That figure highlights how Asian e-commerce sites gain a cost advantage by bypassing similar expenses.
Temu’s Popularity Begins to Dip
Temu’s rise in Denmark has slowed since its peak in 2024, according to DI. Yet, its impact on local retail remains significant. Over recent years, shoppers have shifted from platforms like Wish and AliExpress to Temu, drawn by extremely low prices. Analysts expect new players to replace Temu in the future, given that European consumers continue to seek cheap deals.
However, low prices can come with risks. Many products sold on these marketplaces are unsafe or counterfeit, and oversight is often limited. This has raised concerns about fire hazards in electronics and toxins in toys.
Some Danish municipalities have even reacted strongly to the issue, with one town introducing a unique measure. The municipality of Aarhus, for instance, decided to prohibit the resale of clothing from fast-fashion sites such as Shein and Temu as part of a local sustainability initiative.
Next Steps and Future Customs Reform
Denmark’s Minister for Taxation has praised the EU deal and called it a solid step forward. She hopes the policy will take effect as early as next year. Still, regulators know the change alone will not solve all problems. Because Temu and Shein act as trading platforms hosting independent sellers, enforcing accountability remains difficult.
That is why European lawmakers plan to introduce a broader customs reform in 2028, requiring platforms themselves to take responsibility for goods sold on their websites. Officials believe that without shared responsibility, unsafe and non-compliant goods will continue to flood the market.
A Massive Challenge for European Oversight
The EU imported around 4.6 billion low-value parcels in 2024, nearly twice as many as the year before. Data from the European Commission shows that roughly 91% of those parcels came from China. With such volumes, customs agencies face a major logistical challenge.
Whether the new tariffs will truly “tame” Temu and Shein remains uncertain. But supporters of the regulation say it marks an overdue effort to modernize customs and level the playing field for European businesses while protecting consumers from unsafe products.
Sources and References
The Danish Dream: Danish municipality bans resale of Shein and Temu clothes
DR: Nye toldregler skal tæmme Temu og Shein: Gør et stykke legetøj til en tier 47 øre dyrere
