Singapore-headquartered Shein conducted over two million product safety tests in 2024 in collaboration with leading third-party testing agencies such as Bureau Veritas, Intertek, SGS and TÜV, as well as at an accredited CNAS (Center for a New American Security) laboratory.

The brand also terminated its engagement with more than 260 sellers on its marketplace for failing to meet its compliance requirements last year, and in 2025 will invest more than $15 million to further strengthen its product safety testing and compliance protocols.

Nevertheless, Shein’s advanced algorithm-based business model, connecting together around 6,000 garment factories mainly in China, has this week faced a ‘perfect storm’ following announcements of new legislation on both sides of the Atlantic.

Most notably, the USA is adding an additional 10% tariff on all goods sent from China to the USA, in addition to closing a tax loophole – the so called ‘de minimis’ exemption – on small packages worth under $800 delivered to the USA from China, as well as those from Canada and Mexico. Chaos at US customs control clearing operations is being predicted, but it’s unlikely to stop there.

The European Commission (EC) has also announced guidelines for strict new customs controls as part of a crackdown on what it calls “dangerous products” flooding the EU market.

It is now urging EU national lawmakers to phase out the exemption on customs duties that is allowed for parcels under €150 which enables foreign suppliers to sell cheap goods in the bloc without paying tax. This will have broader implications for other countries outside the EU, including the post-Brexit UK, where Shein is currently planning a £50 billion flotation on the London Stock Exchange.

Many of the low-value products that enter the EU each year are not compliant with its laws, the EC believes, and European companies respecting its laws are losing out to competitors selling unsafe or counterfeit products.

“We have seen a surge in low-value products sold by non-EU traders sold by online marketplaces,” European Commission vice-president Henna Virkkunen told The Guardian newspaper on Wednesday. “Many of these products have been found to be unsafe, counterfeited or even dangerous, so they are often not meeting our standards.”

Shein, however, says it has built and implemented a multi-faceted product safety protocol to ensure product compliance with applicable laws and regulations, as well as to its own standards of product safety. The system spans before, during and after the sale process, and is focused on overseeing product safety and ensuring that products meet compliance requirements.

“Ensuring that our customers can shop with peace of mind is paramount at Shein,” said Leonard Lin, the brand’s president of EMEA and global head of public affairs. “From design to delivery, we all work to protect our customers at every step of the process. We have continued to expand our rigorous testing efforts, working with some of the world’s top global testing agencies to ensure that our products meet the highest standards and we continue to invest in enhancing our approach.”

www.sheingroup.com