‘Stop EU funding for Temu and Shein’

Zentrada presents a tool for European trade

The zentrada community represents its European sellers and has cast a pan-European spell to stop sponsoring Temu and Shein.

“Many of our members, especially online sellers, are facing huge problems with unfair competition from low-cost Chinese platforms. So they asked us to submit a complete plan. Now we have succeeded,” said zentrada managing director Martina Schimmel.

The petition demands an end to subsidies by EU residents and good discipline in opposition to Chinese platforms reminiscent of Temu and Shein. After all, we (EU officials) are financing the development of the Asian platforms Temu, Shein and Wish by taking advantage of customs and stamp duty shortfalls. “At the same time, we are digging a grave for our domestic distributors,” Schimmel mentioned.

The German Tax Union is talking about alleged tax fraud committed by Asian platforms that is costing European taxpayers billions of euros. European customs services are unable to cope with the glut of packages, leaving billions of euros in additional damage to goods and flooding the market with loads of untested non-EU goods.

The demand demands equal alternatives to European gross sales and e-commerce in a battle against prospects against platforms reminiscent of Temu, Shein or Wish.

The application specifies in particular:

We want our EU sellers to have a ‘degree of discipline’

– when importing goods, follow EU guidelines and carry out complex checks

– who pay import tax and gross sales tax on imported goods

– pay disposal fees for shipped products

Chinese authorities are staying away from these guidelines because customs has no energy. In addition, Chinese platforms use sponsored postage arrangements (keyword: Universal Postal Union) to send their parcels to Europe. Prices for products that European buyers cannot even export to the country, let alone China.

With its proposal, zentrada wants to ensure that this issue is at the top of the agenda of the Ministry of Economy and Finance and that urgent options are explored. “Policymakers are currently moving all parts to Brussels, claiming that the EU is burdened with the cost of cultural points. However, Norway and Sweden have introduced a nationwide parcel price for imports of small parcels from third countries and have already achieved a large reduction for parcel floods. So you see, nations can also do one thing!”

Germany and Europe should act soon: the numbers speak for themselves. Daily global supplies for the Temu and Shein deposits range from 4,000 to 5,000 tons each. This includes 400,000 shipments per day to Germany from 2 players. At an average value of 10 euros per package, this will amount to 4 million euros in daily gross sales. This results in a shortfall of 760,000 euros of tax revenue (imported gross sales tax or VAT) every day, calculated here for the German nation, for example.

About the device:

zentrada.Europe is Europe’s main buying community with over 400,000 energy sellers. The online platform connects dozens of small and impartial retailers with major suppliers of FMCG items. With platforms in 9 languages ​​and native workplaces in each country, zentrada helps you trade without borders in Europe.

Contact a specific person
zentrada Europe GmbH & Co KG
Martyna Schimmel
Delpstrasse 5
97084 Würzburg
0931/35981-10