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12° Nicosia,
01 August, 2025
 

''Safety Concerns'' or just a tax grab?

EU targets Temu and Shein with new fees, claiming product risks, but billions in lost customs revenue may be the real reason.

Newsroom

A wave of new measures could soon change the way Europeans shop online, as the European Union moves to crack down on Chinese e-commerce giants like Temu and Shein, citing both consumer safety risks and unfair market practices.

The EU is considering adding a €2 customs fee on all low-value parcels under €150, the kind typically sent by platforms like Temu. While the proposal hasn’t yet been finalized, it marks a significant shift in how the bloc is dealing with the dominance of Chinese online retailers.

Safety concerns mounting

At the heart of the issue is consumer protection. The European Commission recently accused Temu of violating its obligations under the Digital Services Act (DSA), specifically, for failing to properly assess the risks of selling illegal or unsafe products.

The findings came after a "mystery shopping" investigation. If Temu is found officially at fault, it could face fines of up to 6% of its global annual revenue.

But this isn’t the first red flag. A 2023 investigation by the European Consumer Organisation (BEUC) revealed widespread safety violations across Temu’s product listings. Tests on cosmetics, detergents, toys, tools, and household appliances between October 2023 and February 2025 showed that between 19% and 100% of tested items failed to meet EU safety standards.

The economic impact in Greece

For consumers, these platforms offer ultra-low prices and free delivery. But for local businesses, the damage is piling up.

According to the Hellenic Confederation of Commerce and Entrepreneurship (ESEE), Temu and Shein generate an estimated €529 to €627 million annually in Greece, accounting for more than 20% of the country’s e-commerce sector (excluding services).

In fact, Temu held a 23% market share in Greece’s e-retail space in 2024, with Shein close behind at 20%, according to the International Post Corporation. Shein alone posted €204 million in Greek sales in 2023, making it the country’s top online retailer.

This trend isn’t unique to Greece. Shein ranks in the top 10 online retailers in several EU countries, including:

#1 in Portugal and Greece

#2 in Italy

#3 in Spain, even beating Spain’s homegrown giant Zara.

Hidden costs for governments and local businesses

Under current EU rules, packages valued under €150 coming from outside the bloc are exempt from customs duties. That loophole has led to major financial losses.

In Greece alone, uncollected customs fees are estimated at €57 million per year, and that’s not counting the broader losses suffered by domestic manufacturers and retailers who struggle to compete on price.

Across the EU, it's estimated that 4.6 billion low-value parcels were imported in 2024, 91% of them from China.

The Bottom Line for Consumers

If you regularly shop on platforms like Temu and Shein, you could soon see small customs charges added at checkout, and possibly fewer ultra-cheap products on offer if stricter safety regulations kick in. While the changes aim to level the playing field and protect shoppers, they also signal a broader push by the EU to rein in what it sees as unfair, and potentially unsafe, market dominance.

TAGS
Cyprus  |  China  |  consumer  |  shopping

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