EU Tightens Customs Checks on Ecommerce Imports Amid Safety Concerns

The European Union plans to increase customs checks on ecommerce imports from non-EU retailers like Temu and Shein, focusing on safety and fair competition. A new directive from the European Commission will affect low-priced products undercutting local markets and calls for urgent reforms to manage growing shipments.

The European Union is set to strengthen customs inspections on goods shipped directly by ecommerce retailers such as Temu and Shein to EU consumers. This move is part of an effort to ensure fair competition and maintain product safety standards, according to a draft communication obtained by Reuters.

The directive, expected to be released by the European Commission, targets the rapid expansion of companies like Temu, which is owned by Chinese ecommerce giant PDD Holdings, and Shein, a fast-fashion retailer. Both firms have benefited from an EU law exempting parcels under 150 euros from duty, a policy critics argue gives them an unfair advantage.

The European Union's customs initiative will prioritize examining products that pose significant safety risks and calls for all member states to engage. The Commission seeks urgent adoption of customs reforms, including scrapping the duty-free limit and establishing an EU Customs Authority, as handling capacity is overwhelmed by the surge in low-value shipments.

(With inputs from agencies.)