The European Union is set to overhaul its customs regulations significantly, targeting the low-cost e-commerce retailers such as Chinese fast fashion giants Shein, Temu, and AliExpress. Key to these changes is eliminating the current €150 exemption threshold for import duties, slated for abolition by March 1st, 2028. This measure aims to curb the influence of ultra-fast fashion companies and support the EU’s broader objectives within the Green Deal, promoting sustainable production chains.
The revised customs regime follows increasing scrutiny over these companies’ business practices, including accusations of forced labor, particularly in China’s Xinjiang province, environmental pollution, and intellectual property theft. From August, Shein will face stringent rules under the Digital Services Act (DSA), requiring it to prevent product listings that violate intellectual property rights.
In response, Shein has announced initiatives like setting up a €200 million circularity fund in the EU and UK to address sustainability concerns and comply with the anticipated regulations. These steps reflect Shein’s efforts to align with the regulatory landscape and preserve its European market presence amidst tightening regulations.
