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EU set to tighten customs checks for online retailers in crackdown on unsafe goods

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February 5, 2025
in Investing
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EU set to tighten customs checks for online retailers in crackdown on unsafe goods

Online platforms including China’s Shein and Temu are braced for tougher customs controls after the European Commission vowed to stem the influx of what it calls “dangerous products” into EU markets.

Many of the billions of low-value goods arriving each year are deemed non-compliant with the bloc’s regulations, leaving European firms that follow the rules at a disadvantage against rivals that allegedly sell unsafe or counterfeit items.

European Commission vice-president Henna Virkkunen noted the surge in e-commerce had brought “many challenges” to the EU, with a growing risk to consumer health and safety. “We want to see a competitive e-commerce sector that keeps consumers safe, offers convenient products, and is respectful of the environment,” she said.

Figures indicate 4.6 billion low-value parcels entered the EU last year – roughly 12 million per day – triple the 2022 volume. To address the issue, the commission has published a policy paper outlining its intention to collaborate with national customs agencies across the 27 member states. The focus will be on rooting out unsafe products sold online, boosting market surveillance, and expanding product testing.

In addition to health and safety fears, officials are concerned about the environmental impact of cheap, mass-produced imports, from the carbon footprint created by manufacturing and shipping to the challenges of recycling low-grade or toxic materials. The commission has called on lawmakers to repeal the duty exemption on imports priced under €150 (£125) and floated a possible handling fee for retailers to cover the mounting costs of overseeing compliance.

The move draws parallels with the United States, where Chinese fast-fashion retailers lost access to a long-standing loophole when Donald Trump imposed 10% tariffs on Chinese imports, ending duty-free shipments for goods worth less than $800 (£638). The EU crackdown has also intensified after the commission began legal proceedings against Chinese marketplace Temu in October, citing alleged failures to halt the sale of illegal products.

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