EU plans package of measures to combat Asian online giants

The EU is on the verge of taking stringent measures against the growing influx of packages from Asian online retailers like Temu and Shein. A rapid increase in e-commerce, largely bypassing EU customs controls, has necessitated this action. Among the measures being discussed are a new tax on the sales of e-commerce platforms and an administrative fee per package. These could make many of these shipments less competitive, although no final decisions have been made yet. The implementation of such fees is complex, also due to international legal requirements. The massive number of packages flown into the EU annually raises significant security concerns. EU officials observe an increase in dangerous and counterfeit goods, often sent directly to consumers. To counter this, Brussels plans to abolish the €150 threshold, up to which packages are exempt from customs fees. However, this would increase the workload for the already burdened customs authorities. Price levels for planned processing fees are still unclear, but they will apply to all online retailers shipping directly to EU customers from abroad. Retail associations, like EuroCommerce, support the initiative but see legal complications under WTO rules. Meanwhile, the European Commission is raising alarms: the number of reported dangerous products in the EU rose by more than half to over 3,400 in 2023. Particularly affected are cosmetics, toys, electronics, and clothing. The European Commission is working on a proposal concerning the obsolescence of such products, which could be presented in February. Companies like Temu and Shein show willingness to cooperate: they support reforms that benefit European consumers and ensure fair competition. Nonetheless, the challenge remains to protect European competitors from price dumping while advancing digitalization.