Industry News

EU Justice Commissioner Michael McGrath is vowing to crack down on Chinese e-commerce giants Temu and Shein, over claims that the retailers have been taking advantage of duty-free exemptions to flood the bloc with hazardous products.

Speaking to The Guardian on July 20, McGrath said that he was shocked by the dangers posed by goods sold on platforms like Temu and Shein, which have "placed enormous pressure" on EU countries to protect consumers. McGrath added that he's determined to have the EU step up its enforcement moving forward, and create a more level playing field for European businesses that have incurred "significant costs" complying with the bloc's safety requirements. McGrath said that he's also still waiting for the upcoming results of a secret shopper operation that took place across the EU, that was designed to collect more evidence of Chinese retailers bypassing the EU's product safety regulations. 

In early July, a separate report from the European Parliament revealed that the majority of unsafe and illegal products shipped into the EU come in small parcels shipped directly to consumers by Chinese retailers. Those products included baby soothers with beads that could fall off and pose a choking hazard, children's raincoats containing toxic chemicals, sunglasses without UV filters, and children's shorts with long drawstrings that pose a tripping hazard. 

"Behind every online purchase, there may be hidden risks to health, safety, and consumer rights – and too often, these risks come from non-EU operators who bypass the rules," lead MEP Salvatore De Meo said at the time.

The EU is currently weighing a proposal to do away with its €150 ($175) de minimis threshold for duty-free shipments, and replace it with a handling fee for each package, in hopes of stemming the tide of low-value packages from Chinese retailers. In 2024, the bloc saw its total consignments valued under €150 double from the previous year, and triple from 2022. The U.S. did away with its own de minimis threshold of $800 at the start of June, over concerns that low-value shipments were being used to smuggle illegal opioids such as fentanyl.

To read it in SupplyChainBrain : click here