With the European Union (EU) moving to regulate Chinese ultra-low-cost e-commerce platforms after the United States, the global cross-border shopping market has reached an inflection point. The measures target Shein and Temu, which rapidly expanded on the back of small-amount duty-free rules, and some say the business model of cheap overseas direct purchases itself could be shaken.
According to France's Le Monde on the 26th (local time), the European Union (EU) agreed that day on plans to impose a tariff and tighten rules on low-value parcels. Starting in July, items worth 150 euros or less will be subject to a tariff of 3 euros per parcel, and from November an additional processing fee will be added. In effect, expense will be attached to small cross-border items that had entered duty-free.
The core of this measure is that it goes beyond simple taxation to shift legal liability to the platforms. Until now, consumers were deemed the importers, and platforms did not have to bear responsibility even if there were product problems. Going forward, however, platforms such as Shein and Temu must directly assume legal responsibility for product safety and regulatory compliance. Violations will result in fines of up to 6% of annual import value starting in 2028.
This move is in line with the U.S. regulatory stance. As cross-border shipments from China also surged in the United States, President Donald Trump signed an executive order in Apr. last year to abolish the small-amount duty-free system. The aim is to prevent reverse discrimination against domestic retailers and block the inflow of products that fall short of safety standards.
Safety issues within Europe have in fact been repeatedly flagged. A French government investigation found that more than 60% of toys sold on overseas platforms failed to meet safety standards. Customs authorities also cannot process volumes reaching tens of millions of items a day, so many products effectively enter without verification. Le Monde reported that in 2024 alone, 4.6 billion parcels worth under 150 euros entered Europe. That figure more than tripled in just two years from 1.4 billion in 2022. Of these, 91% were made in China.
To unify customs systems that differ across its 27 member states, the EU will establish a "European customs office" in Lille, France. Starting in 2028, it plans to operate an integrated data platform to track the location of China-origin parcels in real time.
Experts interpret the measure as a signal of a reordering of the global distribution system. As Chinese platforms leveraging ultra-low prices exploited gaps in existing regulations to rapidly encroach on the market, major countries have begun to apply brakes simultaneously, analysts say. Platforms are also expected to respond. To reduce expense burdens, options include building logistics warehouses within Europe, as Europe's largest online shopping platform Zalando has done. However, rising logistics and operating expenses are inevitable and could lead to higher consumer prices.