EU Customs Decision Raises Prices on Shein and Temu, Promotes Fair Competition

The recent decision by EU finance ministers to abolish the duty-free exemption for e-commerce goods under 150 euros has triggered price increases on popular platforms like Shein and Temu. This policy change, effective immediately, mandates customs duties and VAT on nearly all imports from outside the EU, regardless of their value. Swedish Finance Minister Elisabeth Svantesson supports the move, emphasizing that businesses not meeting proper standards should not benefit from duty-free privileges. Svantesson highlighted the goal of ensuring fair competition and preventing the entry of toxic or counterfeit products into the EU market. Svensk Handel also welcomed the decision as an important step to level the playing field, noting that European businesses have been disadvantaged by low-cost imports from Temu and Shein. However, concerns remain as the new rules do not impose proactive obligations on online marketplaces to verify product compliance before sales, which Svensk Handel identifies as an ongoing issue. This shift signals a strong EU commitment to fair trade practices and consumer safety by integrating customs enforcement with market regulation strategies within the bloc.