EU's Customs Overhaul Targets Chinese E-commerce Giants

The European Union has agreed to revamp its customs system to better manage e-commerce parcels, particularly from Chinese platforms. New regulations will see platforms like Shein and AliExpress responsible for duties and product safety. Non-compliance may result in severe fines. An EU delegation plans talks in China next week.

The European Union has embarked on a comprehensive overhaul of its customs system, aiming to address challenges posed by the massive influx of low-value parcels, primarily from Chinese e-commerce giants. This move involves rigorous checks and a new set of responsibilities for online platforms selling goods directly to EU consumers.

Revisions to the system mandate that platforms like Shein, Temu, and AliExpress be classified as importers, making them accountable for duty payments and product safety compliance. Non-compliance could result in hefty fines amounting to 1-6% of their EU sales. This shake-up seeks to address the high quantity of non-compliant goods entering the EU.

The bloc plans to eliminate customs duty exemptions for parcels under 150 euros and introduces new fees as interim measures. Additionally, preparations are underway for the EU Customs Authority, set to be based in Lille, to lead a centralized data hub by 2028. Meanwhile, EU lawmakers plan a strategic visit to China to discuss collaboration and competitive fairness in the digital sector.

(With inputs from agencies.)