The European Union is planning significant changes to its customs regulations, potentially altering how imported goods are handled by online platforms. A draft proposal set to be published soon suggests shifting the legal responsibility for imports from individual consumers to e-commerce platforms. This regulatory move comes as part of broader efforts to address rising concerns over counterfeit products, unsafe goods, and unfair competition. The draft also highlights the growing role of online platforms in facilitating international trade and their responsibility in ensuring regulatory compliance.
What changes are being proposed?
Under the draft proposal, online platforms would be required to supply detailed data about goods before they are shipped to the EU. Additionally, these platforms would need to collect duty and value-added tax (VAT) on behalf of authorities and ensure that items meet EU standards. The exemption for goods valued under €150 ($154) would be eliminated, meaning all imported goods would have to undergo duty payments and customs checks. This removal aims to improve regulatory compliance across all imported products, regardless of their value.
Why is the EU focusing on imports from China?
The EU has experienced a sharp rise in imports, with the number of parcels increasing fourfold from 2020 to 2024. Over 90% of these packages reportedly originate from China. Concerns about the safety, environmental impact, and authenticity of these goods have prompted stricter scrutiny. The draft states,
“The surging volume of products that are unsafe, counterfeit or otherwise noncompliant leads to serious safety and health risks for consumers, has an unsustainable impact on the environment, and fuels unfair competition for legitimate businesses.”
The proposed reforms aim to mitigate these risks and create a level playing field for EU-based companies.
The proposed EU measures echo recent developments in the United States, where additional tariffs have targeted small-value shipments. The U.S. repealed its “de minimis” exemption, which previously allowed packages worth under $800 to enter tariff-free. This exemption was often exploited by Chinese e-commerce retailers to bypass tariffs and offer lower prices. Such policy shifts on both sides of the Atlantic indicate a coordinated global effort to tighten regulations on low-value imported goods.
Efforts to regulate low-value imports are not new. In 2021, the EU introduced measures to eliminate VAT exemptions for goods under €22, aiming to curb tax evasion by foreign e-commerce companies. The current proposal builds upon these earlier steps by placing greater accountability on online platforms, signaling an escalation in the EU’s regulatory approach to cross-border trade. This shift reflects the bloc’s ongoing struggle to adapt to the rapid expansion of e-commerce.
The implications of this proposal are far-reaching. Stricter customs rules could lead to higher costs for online platforms and potentially result in increased prices for consumers. However, these measures may also encourage more transparent and ethical business practices in the global e-commerce market. For EU businesses, the reforms could reduce unfair competition from non-compliant imports, creating opportunities for growth.
These developments underscore growing global concerns about the impact of cross-border e-commerce on regulatory compliance and market fairness. Both the EU and the U.S. appear to be converging on a similar regulatory trajectory, suggesting increased collaboration in addressing shared challenges in international trade. As policy changes unfold, all stakeholders will need to adapt to the evolving regulatory landscape to ensure continued participation in the global marketplace.
