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Why New EU Customs Rules Are Unlikely to Slow Down Temu & Co.

Why New EU Customs Rules Are Unlikely to Slow Down Temu & Co.
New EU customs rules are intended to curb cheap imports from China. (File photo) / Photo: Oliver Berg/dpa
From: DieSachsen News
New EU customs rules are intended to curb cheap imports from China. However, major online retailers are likely to adjust their supply chains. The impact on Leipzig/Halle Airport is also expected to be only short-term.

The new EU customs rules for low-cost imports from China are unlikely to slow the boom in online platforms such as Temu or Shein. For the Leipzig/Halle air freight hub, the DHL Group expects only short-term effects, if any. Larger online retailers are likely to increasingly import their goods into the European Union in consolidated shipments, clear customs there, and then distribute them further within Europe, the company stated in response to an inquiry.

Since July 1, a flat customs fee of three euros per product category has also applied to orders from non-EU countries valued at less than 150 euros. The regulation is intended to ensure a more level playing field in European trade and strengthen competition with European providers.

Current figures from the German E-Commerce and Mail Order Association (Bevh) show that Asian shopping platforms are continuing to expand their market share. In the second quarter, Temu, Shein, and AliExpress accounted for 5.3 percent of online retail sales in Germany—a record high. Compared to the same period last year, these platforms increased their sales by more than 20 percent.

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Online retailers are restructuring their supply chains

According to the DHL Group, some major online retailers are already adopting new logistics models. Under this approach, goods are first imported into the European Union as larger shipments and cleared through customs there as usual. They are then distributed to customers within Europe. Just a few days after the new rules took effect, it is not yet possible to reliably assess whether they are already having an impact on shipment volumes.

Online trade from China is also playing an increasingly important role at Leipzig/Halle Airport. “In particular, the growing e-commerce business from China is driving up shipment volumes,” said airport spokesperson Uwe Schuhart. Shaoke and QT Logistics—two logistics companies specializing in cross-border online trade—have recently set up operations at the airport, handling goods for e-commerce providers.

Leipzig/Halle Expects Only a Brief Dip

In the short term, the airport anticipates a decline in cargo volume in the low to mid double-digit percentage range. In the medium term, however, supply chains are likely to adapt, and goods will increasingly be imported into the European Union in consolidated shipments before being forwarded to customers from there.

According to the DHL Group’s assessment, only a small portion of orders from platforms such as Temu or Shein are likely to pass through the express hub in Leipzig. Instead, many goods reach Europe by sea or via warehouses in Poland and the Czech Republic. The DHL hub, on the other hand, is primarily designed for time-sensitive express shipments.

Retailers Call for Further Steps

The German Retail Association welcomed the new customs fee as “a sensible signal for greater equality of opportunity in European trade.” However, it alone will not prevent unsafe products, misdeclared goods, or violations of European consumer, environmental, and product safety standards from continuing to enter the single market. “The customs fee merely compensates for a financial competitive disadvantage; it cannot replace effective market surveillance,” said Stephan Tromp, deputy chief executive of the HDE. It remains to be seen to what extent the new rules will influence consumer ordering behavior.

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