As the European Union (EU) moved to regulate Chinese ultra-low-cost e-commerce platforms following the United States, the global direct-purchase market has reached an inflection point. The measure targets Shein and Temu, which rapidly grew on the back of a small-value duty-free system, and there are views that the very business model of cheap overseas direct purchases 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 regulations on low-value parcels. Starting in July, items worth 150 euros or less will incur a 3-euro tariff per shipment, and from November, a separate processing fee will be added. In effect, small direct-purchase goods that had entered duty-free will now carry an expense.
The crux of the measure goes beyond simple taxation by shifting legal liability to the platforms. Until now, consumers were deemed the importers, so platforms did not have to bear responsibility even if problems arose with products. Going forward, however, platforms such as Shein and Temu will be directly and legally responsible for product safety and regulatory compliance. Violations will result in fines of up to 6% of annual import value starting in 2028.
This move aligns with the U.S. regulatory stance. As direct-purchase volumes from China also surged in the United States, President Donald Trump signed an executive order in Apr. last year to abolish the small-value 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.
In fact, safety issues within Europe have been repeatedly raised. 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 the tens of millions of shipments per day, so a significant number of products effectively enter without verification. Le Monde reported that in 2024 alone, 4.6 billion parcels under 150 euros flowed into Europe. That is more than triple the 1.4 billion in 2022 in just two years. Of these, 91% were made in China.
To unify disparate customs systems across its 27 member states, the EU will establish a "European customs office" in Lille, France. Starting in 2028, it plans to run an integrated data platform to monitor the locations of China-origin parcels in real time.
Experts interpret the move as a signal of a reshaping of the global distribution order. As Chinese platforms leveraging ultra-low prices rapidly took over markets by exploiting gaps in existing regulations, major countries have begun applying the brakes simultaneously, analysts said. Platforms are also expected to respond. To reduce expense burdens, options include building warehouses within Europe, as Europe's largest online shopping platform Zalando has done. However, rising logistics and operating expenses are inevitable, which could lead to higher consumer prices.