The European Commission is proceeding to eliminate the customs duty exemption for small packages valued under 150 euros (from platforms like Shein and Temu etc.). This request, expressed by merchants in Greece and other EU member states, appears to have been heard and a related regulation from the Commission is expected soon. According to powergame.gr and Vangelis Mandravelis, this revelation was made yesterday by Joanna Zawistowska, Director of Retail Policy at the DG Internal Market, Industry, Entrepreneurship and SMEs of the European Commission, during her speech at the celebration event for the 20th anniversary of the Hellenic Confederation of Commerce & Entrepreneurship (ESEE). Ms. Zawistowska referred to the unfair competition that European merchants face from third countries, through the importation of unsafe, counterfeit or non-compliant products.
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“In 2024 alone, nearly 8,000 products per minute entered the Union, with a total value of 4.6 billion euros,” noted the Director General of the Commission. “This volume overloads both the first line of defense, namely the customs authorities, and the second, namely the market surveillance authorities,” she added.
Commission measures for packages from Shein and Temu
The data she presented are indicative of the situation. Last year, only 0.0082% of imported products were checked for compliance, while only 0.0013% were rejected. This situation, according to Ms. Zawistowska, endangers consumer safety, undermines environmental standards and damages the competitiveness of European producers and retailers. To address the influx of cheap and often dangerous products, the Commission has initiated measures on multiple levels, which include:
- Strengthening market surveillance through revision of the Surveillance Regulation, development of digital tools and closer cooperation between customs authorities and surveillance authorities in member states.
- Revision of the customs framework with elimination of the exemption for low-value shipments under 150 euros.
- Strict enforcement of European digital legislation, such as the Digital Services Act (DSA).
- Strengthening cooperation between consumer protection authorities.
The Commission’s Director General did not elaborate further on the measures, but emphasized that the Commission and national authorities must not overlook retail trade, which “is deeply rooted in local communities.” EU policy places particular emphasis on small and medium-sized retail businesses and especially small stores, which today face many challenges. “Small stores,” emphasized Ms. Zawistowska, “bring vitality to our villages, cities and neighborhoods, while also contributing to preserving local cultural identity. We must support them so they remain viable and competitive.”
Support for the 2-euro fee on small packages from SELPE
The positions of Ms. Zawistowska were supported by the president of the Retail Trade Business Association (SELPE), Kostas Gerardos. Commenting on the rumored 2-euro charge on small packages, he characterized it as a “very good start.” He also highlighted the unfair competition issues faced by European and domestic industry, as well as their sales networks.
Beyond the fact that imported products do not comply with EU requirements, many are dangerous. “There are hygiene products containing nickel, which the Commission considers carcinogenic and has banned,” noted Mr. Gerardos.
Regarding the impact from large foreign platforms like Temu, Shein, Alibaba etc., the SELPE president emphasized that they caused a radical change in the Greek and global market. “A year and a half to two years ago, this threat did not exist,” he noted. He emphasized that the activities of these platforms primarily affect small merchants and less so large chains.