The EU proposes reforms to ensure that platforms are responsible for dangerous and illegal products sold on Amazon, Temu, SHEIN, etc.

The EU is planning to require e-commerce platforms such as Amazon and Temu to provide data on goods before they arrive in the EU, as it is unable to inspect the huge number of goods arriving from outside the bloc.

Temu, Shein and Amazon to be liable in EU for 'unsafe' or 'illegal' goods

According to a draft seen by the Financial Times, the EU is looking to reform its customs system to ensure goods are inspected.

Currently, in the EU, individuals who purchase goods from outside the EU on Amazon and other services are treated as importers for customs purposes, and in addition, it is stipulated that 'packets up to 150 euros (approximately 24,000 yen) are exempt from customs duties.' Therefore, each item purchased through such services is not subject to customs duties and is not checked by customs.

However, this system has led to many cases of counterfeit goods being imported that are disguised as genuine goods or that do not comply with EU law. For this reason, the EU is aiming to make platforms such as Amazon responsible for imports and to require them to provide data before goods arrive in the EU, so that they can properly inspect goods.

The draft law states that platforms such as Amazon will be obliged to collect customs duties and value-added tax from buyers and will have to ensure that goods comply with all EU requirements.

The EU will import 4.6 billion low-cost parcels in 2024, four times more than in 2022. Of these, more than 90% will come from China. According to the Financial Times, the draft said, 'The sheer number of items places an 'unsustainable burden' on authorities. The proliferation of unsafe, counterfeit or otherwise non-compliant products poses serious safety and health risks to consumers, has unsustainable impacts on the environment, encourages unfair competition for legitimate businesses and has a significant impact on competitiveness in various sectors.'

The draft is believed to be the fruition of the EU's 'crackdown' reported in December 2024, when it was reported that measures such as the abolition of duty-free quotas, a new tax on the revenue of e-commerce platforms and the introduction of a per-item administration fee were being considered.

EU plans to crack down on imports from overseas platforms like SHEIN and Temu to protect local businesses from a surge in imports - GIGAZINE

According to the draft, customs data managed by the 27 EU member states will be pooled and a new Central EU Customs Authority (EUCA) will be established. It is expected that the EUCA will collectively manage imports and identify potential risks. These proposals are still under discussion and will be published on February 5, 2025.