The European Union is preparing to introduce strict regulations that will make e-commerce platforms like Temu, Shein, and Amazon Marketplace accountable for dangerous or illegal products sold online.
According to a Financial Times report, the proposed customs reforms will change how online platforms handle product compliance and tax collection.
Key Changes Under the Reform
- Platforms will be responsible for ensuring product safety and compliance. Currently, consumers are considered the importers when purchasing goods online, but the new rules will shift that responsibility to the platforms.
- Online retailers will be required to submit product data before goods arrive in the EU. This will help customs officials identify and inspect potentially dangerous shipments before they enter the bloc.
- E-commerce companies must collect customs duties and value-added tax (VAT) directly, rather than leaving it to consumers or sellers.
Creation of a Centralized EU Customs Authority
A major component of the reform is the creation of the EU Customs Authority (EUCA).
This new entity will centralize customs data from all 27 EU member states, screen shipments before they are loaded for transport, and identify high-risk products before they arrive in Europe.
By analyzing customs data in real time, EUCA aims to tighten control over online imports and improve consumer protection.
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What This Means for Online Retailers
The changes will have significant implications for global e-commerce companies.
Platforms like Amazon and Shein will need to strengthen their vetting processes for third-party sellers, ensure product compliance with EU safety and consumer protection laws, and develop systems to handle tax and customs obligations for sellers.
As a result, costs may rise for platforms, and stricter enforcement could lead to fewer non-compliant products entering the EU.
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The Future of E-Commerce in Europe
If approved, these reforms could reshape online retail operations within the EU.
By placing responsibility on platforms rather than consumers, regulators aim to reduce counterfeit, unsafe, and illegal products from flooding European markets.
Amazon, Shein, and the EU have not yet commented on the proposal. Meanwhile, businesses and policymakers will be watching closely as the reforms move forward.
