Germany Pushes to End EU Duty-Free Imports, Targeting Chinese Retailers

According to Reuters, Germany’s largest retail association, Handelsverband Deutschland (HDE), has been advocating for the elimination of the de minimis exception, which complicates customs’ efforts to verify whether imported goods comply with EU regulations.

Earlier this year, Germany supported the EU’s de minimis exemption, which allows packages below a certain value threshold to enter member states without additional scrutiny or duties.

However, the EU is now considering abolishing this limit, currently set at €150 ($165). As Reuters reports, the EU Commission revealed that in 2023, two billion packages entered the bloc from non-EU companies.

If new regulations are introduced, they could place greater pressure on companies like Shein, Temu, and other competitors such as AliExpress in the European market. According to Capital, a spokesperson for Germany’s economy ministry emphasized that Chinese shopping apps should face the same level of scrutiny as EU-based businesses.

Capital further reported that the proposed regulations would establish safeguards to ensure that companies comply with rules on product safety, environmental protection, consumer rights, customs, and tax obligations.

Several countries, including Turkey and South Africa, have already adjusted or abolished their de minimis thresholds, making it more expensive and difficult to import low-value goods from China. In the U.S., regulators are also considering a change to the de minimis threshold, which is among the highest in the world at $800, raised from $200 in 2016.

In addition to these regulatory concerns, the German government criticized Shein earlier this year for allegedly violating the EU Digital Services Act. As a Very Large Online Provider (VLOP), Shein is subject to heightened regulatory responsibilities under this law.

Although neither Shein nor Temu are headquartered in China, much of their business relies on direct shipping from Chinese merchants, suppliers, and manufacturers to consumers worldwide.