E-commerce: EU seeks to end duty exemption on products under 150 euros for consumer safety

Brussels – People shop online, but goods come in via land, and the European Commission wants to tighten regulations against dangerous products delivered to homes from the Internet. It does so in a communication urging a customs reform that involves the removal of duty exemptions for parcels worth less than 150 euros and strengthening control capabilities, such as better data sharing and risk assessment. The problem, we learn, is actually with very low-priced products, as is often the case with those from Temu and Shein, which are the ones that may pose the most significant risks to consumers.

That’s not the end of it: it also calls for better data exchange, sweeping border investigations, and the use of digital tools to better detect potentially non-compliant products.

It is not the end of the free movement of goods but rather a shift in paradigm in the name of consumer safety.  Consumer Protection Commissioner Michael McGrath explains that the problem is e-commerce growth: “Three out of four Europeans shop online regularly. Yet the surge of imported goods can pose threats to the rights of European consumers and their safety.”

The numbers indicate that last year, around 4.6 billion low-value consignments —goods worth up to €150 — entered the EU market — 12 million items per day. It is twice as many as in 2023 and three times as many as in 2022. “Many of these goods were found to be non-compliant with European legislation,” McGrath said. The Commission wants to contrast the increasing number of harmful products entering the EU. Against this backdrop, six Member States were responsible for supervising 89% of directly imported goods sold online, straining customs authorities.

The European Commission intends to step up controls for certain operators, goods, or trade flows on a rolling basis in the light of the risk analysis. In this regard, e-commerce is the primary suspect. “The rise in e-commerce imports to the EU market has brought many challenges,” said Executive Vice President for Technological Sovereignty, Security and Democracy, Henna Virkkunen. The goal, she explains, is “to make sure citizens and businesses can continue to enjoy the many benefits of online shopping while minimizing the risks of dangerous products that threaten the health and safety of consumers.”

The EU is ready to fine, the commissioner admits, with penalties that, in any case, “should reflect cases of systematic non-compliance.” The main objective remains to seize potentially dangerous goods through “the removal of non-compliant goods from the market.”

The EU Commission will complete its assessments for any potential new measures within a year. Meanwhile, The Commission invited Parliament and the Council to consider further measures, such as a non-discriminatory handling fee — to be paid by retailers or platforms — on e-commerce items imported in the EU directly to consumers and to address the scaling costs of supervising compliance of billions of such consignments with EU rules. In any case, “platforms are covered by the Digital Services Act,” Virkkunen said.