This initiative aims to address the increasing influx of imports from China that pose safety risks to consumers across Europe.
According to a draft proposal reviewed by the Financial Times (FT), the EU’s customs reforms would require online platforms to submit data regarding their products prior to their arrival in the EU.
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Though the EU Commission declined to comment, Just Style understands the proposal is on the Commission College agenda for adoption on Wednesday (5 February).
This change is intended to enhance the ability of authorities to monitor and inspect incoming packages more effectively.
The new initiative is said to be under consideration amid apprehensions regarding the influx of hazardous and imitation products from Asia to European consumers.
At present, EU residents who buy products online assume the role of importers in the eyes of customs authorities. However, should the proposed changes take effect, this liability would transfer to the online marketplaces themselves.
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By GlobalData“The surging volume of products that are unsafe, counterfeit or otherwise non-compliant leads to serious safety and health risks for consumers, has an unsustainable impact on the environment, and fuels unfair competition for legitimate businesses, with a significant impact on competitiveness in different sectors,” the proposal reads as per FT.
In 2024 alone, the EU imported 4.6 billion lower-value parcels, marking a fourfold increase compared to 2022,with over 90% originating from China.
This unprecedented volume is placing an unsustainable burden on customs authorities.
The proposed reforms will require online retailers to “collect the relevant duty and VAT” and ensure compliance with other EU regulations.
The suggested changes include the removal of the existing provision that allows duty-free status for items valued under €150, thus requiring these goods to undergo customs inspections.
According to the preliminary draft, there are plans to consolidate customs information from all 27 member states into a unified database and establish a new central European Union customs agency (EUCA). This draft is currently under review and may be subject to modifications prior to its release on 5 February.
“The EUCA would be able to screen the goods based on this information and to identify potential risks, even prior to the loading of the goods for transport or their physical arrival in the EU. This will allow customs authorities to have a complete overview on the supply chains, anticipating controls on imports and exports and making control recommendations to the member states,” FT reported citing the draft proposal.
The fashion sector incurs a loss of approximately €12 billion in sales each year, which represents 5% of its total revenue, due to the prevalence of counterfeit goods.
Additionally, under the newly proposed waste management regulations within the EU, retailers will be required to bear a portion of the expenses associated with the disposal of products that are no longer wanted by consumers, including garments, as stated in the document.
In addition to these reforms, separate regulations governing market behaviour among large online platforms have already led to investigations into Shein and Amazon, with proceedings initiated against AliExpress and Temu.
Amazon, which signed the European Commission’s Product Safety Pledge in 2018, and an updated agreement in 2023, requires all its products that are offered in store to comply with applicable laws, regulations and Amazon policies. Though Amazon did not comment as per its policy around market speculation, Just Style understands it ensures its selection meets industry-accepted standards and that it develops innovative tools to prevent unsafe products from being listed. Products undergo continuous monitoring and, if one is undetected by the automated check, the issue is addressed and the controls process refined.
Shein and Temu did not comment when approached by Just Style.
In September last year, two members of the US Consumer Product Safety Commission (CPSC) called for the organisation to investigate online retailers Shein and Temu as they allege “deadly baby and toddler products” have been sold on both sites.
