The European Union wants to hold e-commerce platforms like Temu, Shein, and Amazon Marketplace more accountable. In the future, they should be liable for dangerous or illegal products sold through their marketplaces. The planned customs law reform stipulates that online retailers must provide detailed data before the arrival of goods in the EU. This is intended to enable early control by authorities and curb the massive influx of questionable imports from China.

According to a draft obtained by the Financial Times, a total of 4.6 billion small shipments were imported into the EU in 2024 – four times as many as in 2022. Over 90 percent of these deliveries came from China. The sheer volume poses a growing burden on national customs authorities. The planned changes are intended not only to enhance product safety but also to prevent tax fraud. The existing customs exemption limit of 150 euros is to be abolished, making all imports subject to customs duties.

A central element of the reform is the establishment of an EU-wide customs authority (EUCA) that consolidates data from the 27 member states.

Additionally, the new regulations stipulate that platforms are responsible for collecting import VAT and customs duties and must ensure that products comply with EU standards. The Commission is also considering a processing fee per package to offset the costs of mass direct shipping from Asia.

The economic damage caused by product counterfeiting is significant: According to EU data, the clothing industry loses 12 billion euros annually (5 percent of sales), the cosmetics industry 3 billion euros (5 percent), and the toy industry 1 billion euros (9 percent). Added to this are new environmental regulations requiring online retailers to share in the disposal costs for unwanted goods.

Meanwhile, the EU Commission is already investigating the market behavior of Shein and Amazon and has initiated proceedings against AliExpress and Temu. Currently, online marketplaces enjoy liability exemption as long as they do not knowingly distribute illegal products or fail to promptly remove them upon discovery. Temu and Shein emphasize compliance with EU guidelines, while Amazon refers to proactive measures against unsafe products.