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Business of Fashion
23-05-2025
- Business
- Business of Fashion
EU Plans €2 Fee for Low-Value Parcels in Setback for Shein and Temu
The European Union is set to propose a 2 euro ($2.27) handling fee for low-value e-commerce packages coming into the bloc, as it struggles to deal with the billions of goods sold by online platforms such as Shein and Temu to European consumers. EU customs authorities handled some 4.6 billion low-value packages bought online in 2024, 91% of them coming from China and a doubling from 2023. The European Commission in February said it would remove the duty-free treatment of low-value consignments worth no more than 150 euros, but not until 2028. The Commission also said it would explore the possibility of an e-commerce handling fee. The fee needs approval from EU governments, which have not yet discussed it, and the European Parliament. France called for such a measure last month. The EU executive said the fee would cover work to ensure compliance of the huge number of parcels with EU rules, such as for toy safety, and would be incurred by the online retailer, rather than by customers. 'With 4.6 billion packages, you can't really have proper controls and to introduce it costs a lot of money and therefore it's fair to ask Alibaba, Temu or Shein to pay their fair share of the cost,' Bernd Lange, chair of the European Parliament's trade committee, told reporters on Wednesday. Alibaba, Shein, and Temu did not immediately respond to a request for comment. China's foreign ministry said it hoped the EU would abide by its commitment to openness and 'provide a fair, transparent and non-discriminatory business environment for Chinese firms'. The Commission has put forward a proposed 2 euro handling fee per parcel delivered directly to the customer or a smaller 50 cent fee for parcels handled by a warehouse within the EU. The United States this month scrapped its 'de minimis' policy that allowed duty-free entry to parcels worth less than $800. European retailers say the existing duty-free policy gives Shein and Temu an unfair advantage. Online retailer Zalando, which sells branded clothes in 25 European countries, told Reuters it welcomed the fee proposal, but said the removal of the customs exemption threshold should be fast-tracked. The handling fee 'could be part of the solution to remedy the unfair competition from Temu and others,' said Stephan Tromp, deputy managing director of German retail association HDE. 'At the same time, the duty-free limit of 150 euros must be abolished.' Polish e-commerce company Allegro called the fee a 'step in the right direction' but said the details of its implementation will be crucial. For example, the lower 50-cent fee for goods handled by warehouses in the EU might ultimately favour global companies with large logistics operations while small businesses will have to pay the 2-euro fee, Ewelina Stepnik-Godawa, regulatory affairs manager at Allegro, said in an emailed comment to Reuters. Europe's biggest fast-fashion retailer, Zara owner Inditex, declined to comment on the fee plan. In a BBC interview earlier this month, Inditex CEO Oscar Garcia Maceiras backed the removal of the duty-free policy to ensure a 'level playing field' with the same rules for all competitors. By Philip Blenkinsop, Ethan Wang, Helen Reid, Anna Pruchnicka, Matthias Inveradi; Editors: Richard Lough, Jane Merriman Learn more: Global Retailers' Tariff Strategy Risks Spreading Pain Beyond US Consumer Brands like Birkenstock and Pandora are considering raising prices in markets outside the US to offset the impact of tariffs.
Time of India
22-05-2025
- Business
- Time of India
EU plans 2 euro fee for low-value parcels in setback for Shein, Temu
HighlightsThe European Union is proposing a 2 euro handling fee for low-value e-commerce packages to manage the increasing volume of online purchases, particularly from platforms like Shein and Temu. The European Commission plans to remove the duty-free treatment for low-value consignments by 2028, amidst concerns from European retailers about unfair competition from non-European online retailers. The proposed handling fee aims to cover the compliance costs associated with ensuring that a significant number of packages meet European Union regulations, with the fee being charged to online retailers rather than consumers. The European Union is set to propose a 2 euro ($2.27) handling fee for low-value e-commerce packages coming into the bloc, as it struggles to deal with the billions of goods sold by online platforms such as Shein and Temu to European consumers. EU customs authorities handled some 4.6 billion low-value packages bought online in 2024, 91% of them coming from China and a doubling from 2023. The European Commission in February said it would remove the duty-free treatment of low-value consignments worth no more than 150 euros, but not until 2028. The Commission also said it would explore the possibility of an e-commerce handling fee. The fee needs approval from EU governments, which have not yet discussed it, and the European Parliament. France called for such a measure last month. The EU executive said the fee would cover work to ensure compliance of the huge number of parcels with EU rules, such as for toy safety, and would be incurred by the online retailer, rather than by customers. "With 4.6 billion packages, you can't really have proper controls and to introduce it costs a lot of money and therefore it's fair to ask Alibaba, Temu or Shein to pay their fair share of the cost," Bernd Lange, chair of the European Parliament's trade committee, told reporters on Wednesday. Alibaba, Shein, and Temu did not immediately respond to a request for comment. China's foreign ministry said it hoped the EU would abide by its commitment to openness and "provide a fair, transparent and non-discriminatory business environment for Chinese firms". The Commission has put forward a proposed 2 euro handling fee per parcel delivered directly to the customer or a smaller 50 cent fee for parcels handled by a warehouse within the EU. The United States this month scrapped its "de minimis" policy that allowed duty-free entry to parcels worth less than $800. European retailers say the existing duty-free policy gives Shein and Temu an unfair advantage. Online retailer Zalando, which sells branded clothes in 25 European countries, told Reuters it welcomed the fee proposal, but said the removal of the customs exemption threshold should be fast-tracked. The handling fee "could be part of the solution to remedy the unfair competition from Temu and others," said Stephan Tromp, deputy managing director of German retail association HDE. "At the same time, the duty-free limit of 150 euros must be abolished." Polish ecommerce company Allegro called the fee a "step in the right direction" but said the details of its implementation will be crucial. For example, the lower 50-cent fee for goods handled by warehouses in the EU might ultimately favour global companies with large logistics operations while small businesses will have to pay the 2-euro fee, Ewelina Stepnik-Godawa, regulatory affairs manager at Allegro, said in an emailed comment to Reuters. Europe's biggest fast-fashion retailer, Zara owner Inditex, declined to comment on the fee plan. In a BBC interview earlier this month, Inditex CEO Oscar Garcia Maceiras backed the removal of the duty-free policy to ensure a "level playing field" with the same rules for all competitors.
The Sun
21-05-2025
- Business
- The Sun
EU to impose €2 fee on parcels, hitting Shein and Temu
BRUSSELS: The European Union is set to propose a 2 euro ($2.27) handling fee for low-value e-commerce packages coming into the bloc, as it struggles to deal with the billions of goods sold by online platforms such as Shein and Temu to European consumers. EU customs authorities handled some 4.6 billion low-value packages bought online in 2024, 91% of them coming from China and a doubling from 2023. The European Commission in February said it would remove the duty-free treatment of low-value consignments worth no more than 150 euros, but not until 2028. The Commission also said it would explore the possibility of an e-commerce handling fee. The fee needs approval from EU governments, which have not yet discussed it, and the European Parliament. France called for such a measure last month. The EU executive said the fee would cover work to ensure compliance of the huge number of parcels with EU rules, such as for toy safety, and would be incurred by the online retailer, rather than by customers. 'With 4.6 billion packages, you can't really have proper controls and to introduce it costs a lot of money and therefore it's fair to ask Alibaba, Temu or Shein to pay their fair share of the cost,' Bernd Lange, chair of the European Parliament's trade committee, told reporters on Wednesday. Alibaba, Shein, and Temu did not immediately respond to a request for comment. China's foreign ministry said it hoped the EU would abide by its commitment to openness and 'provide a fair, transparent and non-discriminatory business environment for Chinese firms'. The Commission has put forward a proposed 2 euro handling fee per parcel delivered directly to the customer or a smaller 50 cent fee for parcels handled by a warehouse within the EU. The United States this month scrapped its 'de minimis' policy that allowed duty-free entry to parcels worth less than $800. European retailers say the existing duty-free policy gives Shein and Temu an unfair advantage. Online retailer Zalando, which sells branded clothes in 25 European countries, told Reuters it welcomed the fee proposal, but said the removal of the customs exemption threshold should be fast-tracked. The handling fee 'could be part of the solution to remedy the unfair competition from Temu and others,' said Stephan Tromp, deputy managing director of German retail association HDE. 'At the same time, the duty-free limit of 150 euros must be abolished.' Europe's biggest fast-fashion retailer, Zara owner Inditex, declined to comment on the fee plan. In a BBC interview earlier this month, Inditex CEO Oscar Garcia Maceiras backed the removal of the duty-free policy to ensure a 'level playing field' with the same rules for all competitors.
The Sun
21-05-2025
- Business
- The Sun
EU plans 2 euro fee for low-value parcels in setback for Shein, Temu
BRUSSELS: The European Union is set to propose a 2 euro ($2.27) handling fee for low-value e-commerce packages coming into the bloc, as it struggles to deal with the billions of goods sold by online platforms such as Shein and Temu to European consumers. EU customs authorities handled some 4.6 billion low-value packages bought online in 2024, 91% of them coming from China and a doubling from 2023. The European Commission in February said it would remove the duty-free treatment of low-value consignments worth no more than 150 euros, but not until 2028. The Commission also said it would explore the possibility of an e-commerce handling fee. The fee needs approval from EU governments, which have not yet discussed it, and the European Parliament. France called for such a measure last month. The EU executive said the fee would cover work to ensure compliance of the huge number of parcels with EU rules, such as for toy safety, and would be incurred by the online retailer, rather than by customers. 'With 4.6 billion packages, you can't really have proper controls and to introduce it costs a lot of money and therefore it's fair to ask Alibaba, Temu or Shein to pay their fair share of the cost,' Bernd Lange, chair of the European Parliament's trade committee, told reporters on Wednesday. Alibaba, Shein, and Temu did not immediately respond to a request for comment. China's foreign ministry said it hoped the EU would abide by its commitment to openness and 'provide a fair, transparent and non-discriminatory business environment for Chinese firms'. The Commission has put forward a proposed 2 euro handling fee per parcel delivered directly to the customer or a smaller 50 cent fee for parcels handled by a warehouse within the EU. The United States this month scrapped its 'de minimis' policy that allowed duty-free entry to parcels worth less than $800. European retailers say the existing duty-free policy gives Shein and Temu an unfair advantage. Online retailer Zalando, which sells branded clothes in 25 European countries, told Reuters it welcomed the fee proposal, but said the removal of the customs exemption threshold should be fast-tracked. The handling fee 'could be part of the solution to remedy the unfair competition from Temu and others,' said Stephan Tromp, deputy managing director of German retail association HDE. 'At the same time, the duty-free limit of 150 euros must be abolished.' Europe's biggest fast-fashion retailer, Zara owner Inditex, declined to comment on the fee plan. In a BBC interview earlier this month, Inditex CEO Oscar Garcia Maceiras backed the removal of the duty-free policy to ensure a 'level playing field' with the same rules for all competitors.
Yahoo
19-05-2025
- Business
- Yahoo
Germany's HDE projects 2025 online retail revenue up 4%
The German Retail Association (HDE) has revised its projections for the nation's online retail sector, now anticipating a 4% uptick in sales for 2025. The projected growth corresponds to sales of €92.4bn ($103.2bn). The HDE Online Monitor 2025 highlights the food and drugstore categories as primary contributors to this online growth trajectory. Since 2022, online market shares for the two segments have risen by more than 8% and 9% respectively. HDE deputy managing director Stephan Tromp stated: "After several weaker years, online retail is once again the clear growth engine for retail in Germany. Despite the overall unsatisfactory consumer sentiment, online retailers are managing to achieve significantly better sales than in the previous year." Data from the HDE Online Monitor show that online marketplaces now comprise 57% of Germany's total online sales. A significant portion of consumers inadvertently purchase items from international vendors. It is projected that foreign online retailers will generate €8.9bn in sales in 2024, accounting for 10% of the nation's online sales volume. Temu and Shein alone are estimated to contribute between €2.7bn and €3.3bn to these figures. Tromp continued: "The high figures and the strong momentum make it clear that it is high time for politicians to ensure fair competitive conditions with suppliers from the Far East. Competition stimulates business, but this Wild West situation must end: anyone offering goods in this country must adhere to all our rules. The current situation endangers domestic retailers and consumer safety." Meanwhile, the e-commerce industry is awaiting decisive and unequivocal action from both Germany's new government and the EU Commission. "Germany's HDE projects 2025 online retail revenue up 4%" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
