The EU is Concerned About Low-Value Goods Entering the Bloc Via Online Platforms

Over the years, shipments of small items entering the EU have increased significantly. These imports, whose value is less than €150 ($175) for each item, have increased from 1.4 billion items back in 2012 to 4.6 billion items in 2024. The European Parliament is concerned that these small items may be contravening established consumer safety and quality standards.

The concerns of the Parliament come given the rise of Chinese ecommerce retailers like Shein and Temu that specialize in selling low-cost items, such as apparel. In 2024, at least 91% of the low-value items shipped into the EU originated from China, according to statistics cited by the EU Commission.

The number of Europeans shopping online is also growing at a fast pace. For example, in 2014, just 59% made an online purchase, but this fraction has since grown to 77% of the people using the internet in Europe. Younger people are particularly more likely to make online purchases, but older people are also catching on.

At the moment, low-value items are exempted from paying any import duties while entering the EU, but the bloc wants this exemption removed.

The growing number of small items imported into the EU is presenting a major challenge to national authorities charged with overseeing imports to ensure they meet the regulations in force. It is difficult to ensure that every small package entering the bloc meets applicable laws on ecodesign, safety or environmental protection.

Additionally, those cheap items sold online put local companies at a disadvantage because the imported items are often substandard and don’t usually adhere to the same standards as the locally-produced versions.

The EU Commission has made a number of proposals aimed at addressing these challenges. One such proposal entails reforming customs laws so that the processes customs authorities follow are simplified. This will enable those authorities to pay more attention to the riskiest traders, shipments and specific goods.

Additionally, the Commission proposes that a €2 ($2.34) handling fee be levied on each low-value item imported into the EU. Measures to boost how product safety rules are enforced were also proposed.

As the European Parliament and Commission take these different proposals through the consideration process prior to their adoption, major players like Amazon.com Inc. (NASDAQ: AMZN) within the online retail space are likely to pay close attention to any resolutions made as the decisions made could have operational implications  on their platforms.

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