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Temu, Shein and Amazon to be liable in EU for ‘unsafe’ or ‘illegal’ goods

by Investor News Today
February 1, 2025
in Market Updates
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Temu, Shein and Amazon to be liable in EU for ‘unsafe’ or ‘illegal’ goods
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Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.

The EU plans to make ecommerce platforms akin to Temu, Shein and Amazon Market answerable for harmful or unlawful merchandise bought on-line, in a crackdown on the flood of imports from China.

In keeping with a draft proposal seen by the Monetary Instances, customs reforms would oblige online platforms to offer knowledge earlier than items arrive within the EU, permitting officers to raised management and examine packages. The proposal comes amid issues in regards to the rise in harmful and counterfeit items shipped from Asia on to European clients.

At present, any particular person within the EU who purchases items on-line is handled because the importer for customs functions. However the reforms, if adopted, would change the accountability to the platforms.

“The surging quantity of merchandise which are unsafe, counterfeit or in any other case non-compliant results in critical security and well being dangers for customers, has an unsustainable impression on the surroundings, and fuels unfair competitors for respectable companies, with a major impression on competitiveness in numerous sectors,” the proposal reads.

The EU imported 4.6bn lower-value parcels in 2024, a fourfold improve on 2022. Greater than 90 per cent have been from China. The sheer quantity of this stuff places an “unsustainable pressure on the authorities”, in keeping with the draft.

Below the reforms, on-line retailers must “gather the related obligation and VAT” and “make sure the compliance of the products with different EU necessities”. The proposal additionally abolishes a present exemption for items price lower than €150 from paying obligation, making them topic to customs checks.

Customs knowledge from the 27 nationwide authorities will likely be pooled and a brand new central EU customs authority (EUCA) arrange, in keeping with the draft. The doc remains to be being mentioned internally and will change earlier than publication on February 5.

“The EUCA would be capable of display screen the products primarily based on this info and to establish potential dangers, even previous to the loading of the products for transport or their bodily arrival within the EU,” the doc says.

“This may enable customs authorities to have a whole overview on the availability chains, anticipating controls on imports and exports and making management suggestions to the member states.”  

Counterfeiting prices the clothes business near €12bn in annual gross sales (5 per cent of income), the cosmetics business €3bn (5 per cent of gross sales) and the toy business €1bn (virtually 9 per cent of gross sales), in keeping with the proposal. 

The bloc’s new waste guidelines can even oblige sellers to contribute to the price of disposal of undesirable merchandise together with garments, the doc provides.

Really helpful

One of the offending toys, pic supplied by Toy Industries of Europe

The EU can even think about imposing a dealing with payment per package deal, a plan first revealed by the FT.

Below separate guidelines policing the market behaviour of huge on-line platforms, the fee is already investigating Shein and Amazon and has began proceedings in opposition to AliExpress and Temu.

On-line marketplaces are exempt from legal responsibility for the products bought on their web site by different distributors until they promote unlawful or hazardous merchandise knowingly or fail to take away them swiftly when detected.

Temu and Shein have all beforehand instructed the FT that they adjust to EU guidelines. Temu has mentioned it helps coverage adjustments that profit customers.

Amazon has mentioned it has proactive measures in place to stop unsafe or non-compliant merchandise from being listed on its web site.



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