The EU Plan Holds E-commerce Sites like Temu and Amazon Responsible for Defective Products.
New import regulations could negatively affect online markets.
The European Union is preparing a series of regulations that will affect the import of foreign products through e-commerce platforms such as Shein, Temu, and Amazon, according to a draft proposal. These new customs guidelines would require these companies to provide information about the products, including those sold by third parties, to EU officials before their arrival. This measure aims to improve the tracking and inspection of shipments.
One significant change being proposed is the assignment of responsibility for products deemed dangerous or illegal to the e-commerce platforms themselves, rather than to the importers. This would mean that marketplaces would need to ensure that their products comply with EU regulations. Currently, any EU resident who purchases foreign products online is considered an "importer" by customs authorities.
In 2024, it was estimated that more than 90% of "low-value" products entering the EU are imported from China through these platforms. With the new rules, the EU could affect this dynamic by imposing tariffs on such shipments, which have so far been exempt. Additionally, extra handling charges and the establishment of a new EU customs authority (EUCA) are being considered to oversee this process.
The draft indicates that the increase in unsafe, counterfeit, or non-compliant products poses a serious risk to consumer health and safety, has a negative impact on the environment, and creates unfair competition for legitimate businesses, affecting competitiveness across various sectors. The EUCA would have the ability to assess products based on the information provided to identify potential risks before goods are transported or physically arrive in the EU.
The EU has initiated several investigations into marketplaces under its Digital Markets Act (DMA), including antitrust audits targeting Amazon. By the end of 2024, it was reported that Amazon would once again face scrutiny by the block's antitrust agency, accused of prioritizing its own products over those of other sellers on its platforms.
Additionally, the EU recently extended a six-month period of economic sanctions against Russia in response to its invasion of Ukraine, and is considering expanding sanctions on imported products such as gaming consoles and controllers.