The European Union is preparing to introduce significant law reforms aimed at regulating the sale of unsafe and illegal products through e-commerce platforms like Temu, SHEIN, and Amazon Marketplace.
This step is taken to address the growing volume of imports from China that pose safety risks to European consumers.
A draft proposal outlines new customs regulations that would require online platforms to provide product data before the goods arrive in the EU. This would give authorities greater oversight and improve their ability to inspect incoming packages. The proposal is reportedly on the EU Commission College agenda for adoption on February 5th.
Currently, EU residents making online purchases are considered the importers for customs purposes. The proposed changes would shift this responsibility to the online marketplaces themselves. The EU’s concern stems from the surge in unsafe, counterfeit, and non-compliant products, which pose safety and health risks, harm the environment, and create unfair competition for legitimate businesses.
In 2024, the EU imported 4.6 billion low-value parcels, a fourfold increase since 2022, with over 90 per cent originating from China. This volume is overwhelming customs authorities. The reforms would require online retailers to collect duties and VAT and ensure compliance with EU regulations.
The plan also includes consolidating customs information from all 27 member states into a central database and creating a new European Union Customs Agency (EUCA). The EUCA would screen goods based on pre-arrival data, identifying potential risks and providing control recommendations to member states, according to the FT.
Counterfeit goods cost the fashion sector an estimated US $ 12.37 billion in sales annually, representing 5 per cent of total revenue. Furthermore, proposed EU waste management regulations would require retailers to share the costs of disposing of unwanted products, including clothing.
These reforms complement existing regulations targeting large online platforms. SHEIN and Amazon are already under investigation, and proceedings have begun against AliExpress and Temu.
Amazon, which signed the European Commission’s Product Safety Pledge, requires its products to comply with all applicable laws, regulations, and policies. It ensures its selection meets industry standards and uses tools to prevent unsafe listings, continuously monitoring products and refining its controls.
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