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EU to hold platforms liable for unsafe or illegal goods

EU to hold platforms liable for unsafe or illegal goods

The EU aims to curb the influx of unsafe products entering the European market via ecommerce platforms such as Temu, Shein, and Amazon. Brussels wants to make these platforms liable for dangerous or illegal products sold online. There are also plans to establish a new EU customs authority.

The European Union is grappling with the large volumes of products arriving from Asia. The number of imported lower-value parcels reached 4.6 billion last year, four times as many as in 2022. The vast majority of these packages (over 90 percent) came from China. Many of the items fail to meet the EU’s product safety requirements. This not only poses risks to consumers and the environment but also undermines the competitive position of online sellers within the Union.

Most products fail to meet regulations

Over 85 percent of products from Chinese platforms fail to meet regulations, according to a recent inspection by European market surveillance authorities. However, regulators lack the capacity to enforce existing rules on consumer protection, product safety, and counterfeit goods.

Lack of capacity to enforce EU rules

The current flow of parcels is unmanageable, according to a recent open letter from Dutch regulators – since many products enter the EU through the Netherlands. To address this, Brussels is working on customs reforms, reports the Financial Times, which has reviewed a draft legislative proposal.

Platforms held liable

Proposed customs reforms would require online platforms to provide data before goods arrive in the EU, where most top online sellers are not European. This would allow officials to better control and inspect packages shipped directly from Asia to European customers.

Instead of consumers, platforms will be seen as importers of products

Currently, any individual in the EU who purchases goods online is treated as the importer for customs purposes. Under the proposed reforms, this responsibility would shift to the platforms. Online retailers would be required to “collect the relevant duty and VAT” and “ensure the compliance of the goods with other EU requirements”.

EU customs authority

Under the reforms, Customs data from the 27 national authorities will be pooled, and a new central EU customs authority (EUCA) will be established, according to the draft. The proposal also includes the removal of the current 150 euros threshold for import duties, which EU regulators had previously discussed and plan to implement by 2028.

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Arjan

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Arjan

Arjan van Oosterhout has been contributing to Ecommerce News Europe since the spring of 2023. He writes news articles for the website on a freelance basis.

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