A Renew Europe member of the European Parliament has raised concerns with the European Commission about the steady inflow of cheap goods sold through online platforms like Shein and Temu. In discussions focused on the EU’s largest market, Germany, observers note that hundreds of thousands of items arrive daily, many priced under 150 euros, and that these shipments can pose risks to the environment and, on occasion, to health. The current framework allows items under 150 euros to escape customs duties, a loophole these marketplaces are believed to exploit to flood the EU with low-cost products. A sizable share of these goods is undervalued to dodge tax obligations. The European Commission is actively drafting a legislative reform to remove this blanket exemption. For readers in Canada and the United States, the reform signals how cross-border e-commerce may be taxed in the future and how platforms operating in the EU must adapt.
Economy Commissioner Paolo Gentiloni has confirmed in writing that negotiations are still under way. The measures under discussion would abolish the current threshold that exempts goods valued under 150 euros from duties and would place responsibility on e-commerce platforms to ensure that customs duties and value-added tax are paid at the moment of purchase, with information made available to customs authorities. Gentiloni adds that there are growing concerns about product safety, environmental compliance, and the presence of counterfeit goods sold online, which underscores the need for robust checks across cross-border marketplaces.
The key points
- Exemptions
The reform would remove the threshold that allows goods valued under 150 euros to be exempt from customs duties.
- Fraud
Up to 65 percent of shipments of this kind entering the EU are undervalued to dodge customs duties when imported.
The official data confirm these practices on several platforms, which involve splitting orders into multiple packages so the total value never crosses the threshold that would trigger duties. In eight months, more than 100,000 tariff lines were recorded. The policy maker described this approach as a form of tax fraud costing the EU billions in lost revenue.
The Brussels goal is to begin applying these customs changes from 2028, with full compliance expected roughly a decade later. The next Commission will continue addressing the challenges posed by online marketplaces to ensure that consumers and businesses benefit from fair competition grounded in effective customs controls, taxation and safety measures, and sustainable standards.
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