EU's Customs Shake-Up: Cracking Down on E-Commerce Giants

The European Union is overhauling its customs system, targeting mainly Chinese e-commerce platforms to ensure product safety and duty compliance. A new framework requires online platforms selling into the EU to act as importers, paying duties and ensuring safety standards. Noncompliance could result in hefty fines.

The European Union agreed on Thursday to overhaul its customs system, targeting mainly Chinese e-commerce platforms such as Shein, Temu, and AliExpress. The new measures include treating online sellers as importers responsible for duties and the safety of products. Any deviations could lead to fines ranging from 1% to 6% of their total sales in the bloc.

Motivated by a surge in low-value parcels flooding the bloc, expected to reach 5.8 billion by 2025, EU representatives finalized the deal after extensive negotiations. The agreement aims to scrap the current duty exemption for parcels below 150 euros by imposing a 3 euro fee from July and extra handling charges from November 1.

In addition, Lille, France, has been chosen as the site for the future EU Customs Authority, which will manage a new data hub providing comprehensive oversight of incoming goods. This move is part of the EU's broader efforts to address concerns over imported product safety, especially after a recent study showed significant non-compliance in areas such as cosmetics and personal protective equipment.

(With inputs from agencies.)