On Thursday, the European Union (EU) agreed to an overhaul of its customs systems, including a crackdown to potentially fine Chinese e-commerce platforms if they sell illegal or unsafe products.
The EU is seeking to coordinate the collection of duties and safety checks as it struggles to manage the incoming high volume of low-value e-commerce parcels into the bloc, with the total recorded packages reaching 5.8 billion in 2025.
The bloc’s concerns over product safety were highlighted by a study published by the European Commission this month. It found that 60% to 65% of imported cosmetics, including make-up, food supplements and personal protective equipment, such as bicycle helmets, did not comply with the EU’s safety rules.
New System for Imports
Representatives of the European Parliament and EU governments struck a pivotal deal after negotiations ran late into Thursday evening, while clarifying final details.
Under the new system, online platforms that sell to EU countries will be treated as importers and responsible for payment of duties and product safety. Companies repeatedly flouting the bloc’s rules could face fines of between 1 and 6% of their total sales in the EU over the previous 12 months.
The EU does not apply customs on parcels valued at less than 150 euros ($173.85), which has fuelled the rapid growth of online shopping platforms such as Shein, Temu and AliExpress that send customers packages directly from China.
On Wednesday, the French city of Lille was selected as the location for the future EU Customs Authority (EUCA), whose 250 staff will oversee a new EU data hub that will track the parcels and provide a centralised and digital view of incoming goods.
The data hub is set to open for e-commerce consignments in 2028 and will cover imported goods by March 1, 2023.
EU Delegation to Visit China
Next week, the EU will send a nine-member delegation to Beijing and Shanghai to address the challenges in the digital and e-commerce sector. They intend to foster fair competition between China and the bloc, according to a statement from the EU Delegation to China.
Over three days, the European lawmakers will meet with Chinese legislators and market regulators as well as representatives from Shein, Alibaba and Temu.
“A top concern … are the systemic breaches of EU laws and the high volume of non-compliant small parcels coming from non-EU online platforms, including from China,” the EU statement said.
In what would be the first EU parliamentary visit in eight years, the engagements are expected to focus on digital regulation, consumer protection and compliance with product safety rules.
(With inputs from Reuters)
