The European Union is set to introduce new reforms aimed at holding ecommerce platforms such as Temu, Shein, and Amazon Marketplace accountable for selling dangerous or illegal goods, especially those imported from China. A draft proposal, reviewed by the Financial Times, outlines a plan to revamp customs procedures to enable authorities to better control and inspect products before they reach EU consumers. The reforms are a response to the rising concerns over the increasing flow of counterfeit, unsafe, and non-compliant goods entering the European market from China.
Currently, individual consumers in the EU are responsible for customs duties when purchasing goods online. However, under the proposed changes, the responsibility would shift to the ecommerce platforms themselves. This change is expected to give authorities better oversight and control over the products entering the market.
The proposed reforms are driven by the surge in counterfeit and dangerous products flooding the EU, creating significant safety risks for consumers. The proposal states that the flood of low-quality goods not only puts public health at risk but also disrupts fair competition for legitimate businesses, ultimately damaging competitiveness across various sectors. According to the Financial Times, the EU imported 4.6 billion low-value parcels in 2024, a fourfold increase from 2022, with more than 90% of these goods coming from China. This influx has overwhelmed customs authorities, putting a strain on their ability to adequately inspect and regulate shipments.
Under the new proposal, online platforms will be required to collect the relevant duties and VAT, ensuring their goods meet EU compliance standards before they enter the market. Additionally, the proposal suggests abolishing the current exemption for goods valued under €150, which would subject these items to customs checks as well.
A central EU customs authority (EUCA) would be established to streamline customs data from national authorities and monitor goods before they are shipped to Europe. The EUCA would be able to preemptively flag risky goods by screening available data on supply chains. This proactive approach would allow EU authorities to better manage imports and enforce regulations on both imports and exports, making it easier to pinpoint potential hazards before they reach consumers.
Counterfeit products represent a major financial threat to industries within the EU. The proposal highlights that the clothing, cosmetics, and toy industries lose billions annually to counterfeit goods. In 2024 alone, counterfeiting cost the clothing industry approximately €12 billion, while the toy industry faced losses nearing €1 billion.
Additionally, the proposal includes new rules around waste disposal. Sellers will be required to contribute to the cost of disposing of unwanted goods, such as clothes, as part of the EU’s push to tackle environmental issues.
The European Commission is also examining the practices of large online platforms, with investigations currently underway for Shein, Amazon, AliExpress, and Temu. These platforms have typically been exempt from liability for goods sold by third-party vendors, unless they knowingly sell illegal or dangerous products, or fail to remove them once identified.
