The Chinese discount shops Temu and Shein continue to cause discontent in the western retail sector. In Germany, both online retailers have come under a lot of criticism, most recently from the German Retail Association, which recently complained about “unacceptable conditions” and unfair competition. In particular, the pressure on the government parties has been increased several times and they have been called upon to take action.
SPD for abolition of the customs exemption limit
Now there is movement at the political level: On the one hand, the SPD faction has announced that it will take action against a practice of the two retailers. By abolishing the duty-free limit of 150 euros, the cheap shop practices are to be put to a stop. Currently, items purchased in a non-EU country do not have to be declared – if their value is less than 150 euros. Temu, Shein and AliExpress would benefit from this. According to current estimates, around 400,000 “environmentally harmful and sometimes health-endangering products” from Chinese online retailers end up in Germany every day, according to a paper from the SPD.
As Der Spiegel reports, EU plans currently call for the abolition of the customs exemption limit by 2028. SPD politician Alexander Bartz has been calling for an acceleration for some time, and now the entire parliamentary group is in favor of an early end to the customs exemption limit.
Federal Ministry of Economics plans measures
The Federal Ministry of Economics, headed by Minister and Vice Chancellor Robert Habeck, has also announced an “e-commerce action plan” to take action against Temu and Shein. “It is crucial that existing legal regulations are enforced just as consistently against traders from third countries as they are against traders from the EU,” a spokeswoman for the ministry told the business magazine Capital. “This applies to the applicable standards for product safety, environmental protection and consumer protection as well as customs and tax law,” Capital continued. New measures and adjustments to existing regulations are currently being examined. In addition to talks with the federal states and the EU Commission, State Secretary Sven Giegold (Greens) also met with representatives of Temu and Shein in June. The aim is to “ensure fair competitive conditions for all market participants,” the ministry told Capital.
BEVH calls for immediate action
After both the SPD parliamentary group and the Federal Ministry of Economics announced measures and action plans, Daniela Bleimaier, Head of Public Affairs Germany & Regional Affairs at BEVH, commented on both proposals. Nevertheless, it is important that these are implemented soon. “Europe already has comprehensive rules for fair competition. In numerous discussions with politicians, we have therefore called for consistent implementation. If we want more effective controls and a reduction in the duty-free limit, we need more manpower in the market surveillance authorities, at the customs borders, and more digitalization. As a next step, we expect the EU Commission to address the proposals in a communiqué that is already expected.”
