The German Retail Association (Handelsverband Deutschland – HDE) has called for immediate and decisive measures to curb the increasing flood of questionable goods arriving from the Far East, following the release of the 2024 annual customs report by Federal Finance Minister Lars Klingbeil.
The HDE's concerns are particularly focused on the growing volume of parcels entering the EU from e-commerce platforms Temu and Shein. According to the association, these shipments often violate EU product safety regulations and are regularly misdeclared to exploit the existing customs duty exemption for items valued under €150.
'The authorities must no longer be relegated to the sidelines. Customs need proper equipment and a decisive move towards digitalisation to be able to inspect at least a reasonable sample of the package volumes coming from China,' said HDE President Alexander von Preen. 'Otherwise, this unfair competition will economically destroy our domestic retailers who comply with all regulations.'
Von Preen is advocating for the swift abolition of the €150 customs exemption, stating: 'With these tricks there must be an end, and as soon as possible. The customs exemption must be abolished.' In 2024 alone, 4.6 billion parcels with an alleged value under €150 were delivered directly to consumers in the EU, 91% of which originated from China, predominantly from platforms like Temu and Shein.
The HDE warns that the situation has grown more urgent. 'The USA abolished its exemption threshold at the beginning of April and now levies customs duties and an additional processing fee on every parcel. This has killed the business model for Temu and others in the US,' von Preen explained. 'As a result, we are already seeing a shift in their focus towards Europe. This massively increases pressure on decision-makers in Germany and the EU. We must act.'
Temu has since withdrawn its app from US stores and is redirecting marketing investments towards Europe, notably Germany, France, and the UK, to expand its market share.
In response, the HDE has formally urged the Federal Finance Minister to accelerate adoption of the EU Commission's February 2025 recommendations. Key measures include the abolition of the customs exemption, introduction of a parcel processing fee, and mandatory customs registration for all parcels, regardless of value, via the EU Import One-Stop-Shop system. These steps are intended to ensure correct payment of customs duties, fees, and taxes.
The HDE maintains that swift implementation is essential to safeguard fair competition and consumer safety across the European retail sector.
More information:
Handelsverband Deutschland
www.einzelhandel.de